The average citizen in many Latin American countries has turned to Bitcoin in order to survive, and now many wealthy families are becoming a believer in the cryptocurrency and are buying as much as they can.
The economic situation in many Latin American countries is extremely dire. Hyperinflation has hit Peru, Bolivia, Argentina, Venezuela, and Brazil, with some countries in worse shape than others (Venezuela). Many normal residents began to turn to Bitcoin when the economic situation began to hit rock bottom. Now it seems that the upper echelons of Latin American society have taken note as many wealthy families are now diving enthusiastically into Bitcoin.
A land of upheavalVenezuela has served as ground zero for the economic crisis in Latin America. The situation is so desperate that many turned to crypto mining in order to buy the basic necessities, such as food and medicine. A shocking stat is that a full 3/4th of the country lost weight last year due to food shortages. Despite government crackdowns, the local population continues to actively trade in cryptocurrency, with Localbitcoins serving as the main hub.
The elites of Latin America have not proven immune to the economic situation. Wealthy families are now buying big into Bitcoin as a means to protect their assets from currency controls and rising consumer prices. Several cryptocurrency funds have opened up in 2017 to provide service to this elite clientele.
One of these funds is Solidus Capital, founded by Carlos Mosquera Benatuil, who fled to Rome from Venezuela to open the business. He says that family offices make up most of the funds, who are looking to turn around their fortunes. He says:
"Latin America is very volatile. Cryptos are turning into a new haven for these families."
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