[2017-12-16] Bitcoin is "Lifesaving" Currency in Venezuela

[entrepmind23]

Bitcoin is now becoming a constant part of many Venezuelans’ everyday life.

Whether they’re buying food, plane tickets, or even paying employees, Bitcoin is now a common mode of payment for Venezuelans. Frankly, many people in the country rely on cryptocurrencies for survival.

Survival of fittest
Venezuela’s hyperinflation has rendered the national currency, the Bolivar, nearly worthless. Thousands of ordinary people have begun turning to the world of cryptocurrency to salvage what little value remains in their savings..

One Venezuelan, John Villar, knows the struggle of having a his national currency become worthless, so he sticks with Bitcoin for all of his transactions. He said that his situation, choosing digital currency is not a matter of politics but of survival. Bitcoin transactions are relatively swift for anyone with a smartphone: Websites like LocalBitcoin and Colibit function as exchanges where Venezuelans can buy and sell bitcoins using a local bank account.

Government’s move
Cryptocurrencies have become so fashionable that even President Nicolas Maduro has proposed a government-backed version called the Petro. Members of his administration have met with Venezuelan Bitcoin entrepreneurs to determine how such a currency might work. Though few details have been released, many in the Bitcoin world have responded skeptically to the idea. It seems unlikely that Venezuelans will trust a digital currency issued by a government they have little faith in.

In Venezuela, the so-called "crisis currency" is allowing desperate Venezuelans to make potentially life-saving purchases.

Villar had been unable to find several of the medications needed to treat his wife's multiple sclerosis in Venezuela for the last two years, a story not uncommon in a country whose public health system has been crippled by shortages. Instead, he purchased them abroad with Bitcoin and used courier services to deliver them to Venezuela.

Authorities have largely permitted trading of Bitcoin in Venezuela, though they have heavily fined and detained people who attempt to mine the digital currency. For Villar, the stakes are especially high, and not just for his business. An engineer who once ran a biometrics enterprise, he is staking his financial future on the development of a game involving an alternative cryptocurrency called PepeCash.

A dozen employees operate from a small office filled with computers in an industrial community east of the capital. All receive part of their salary in Bitcoin. His wife, also an engineer, is now largely bound to a wheelchair.

"At this moment, I don't have a single bolivar."

Ambassadors from other digital currency projects, such as Dash, have been trying to familiarize Venezuelans with an array of cryptocurrencies. Earlier this fall, Dash sponsored 12 free conferences in the country in order to raise awareness.

Source: https://cointelegraph.com/news/adoption-of-bitcoin-picking-up-speed-in-venezuela-called-lifesaving-currency

[marckenigsberg]

Anyone know about the adoption of bitcoin cash in Venezuela?
Is this still largely bitcoin or is there a move to bch?

[Kemarit]

Anyone know about the adoption of bitcoin cash in Venezuela?
Is this still largely bitcoin or is there a move to bch?

As far as I know, Venezuela is currently using bitcoin as their main hedge against the current economic situation in their country. There has been reports as well that their Central Banks are secretly mining bitcoin. But its neither confirmed nor denied. As I have mentioned several times, this is really a case study for bitcoin. We heard that gold is the best hedge for economic devastation, but the Venezuelan crisis proves that bitcoin can also be used to buy things outside of the country in order for them to survived. They purchase things using bitcoin then delivered it to them the way I understand it. As for Petro government back crypto-currency, I still don't see how it will became successful. I haven't heard any crypto back state taking off. But let see how things go for this so called "Petro".

[CryptoBry]

Indeed, in Venezuela many people have realized the value of Bitcoin under a very stressful economic environment. The more that the economy of Venezuela experienced the tremors which resulted from wrong policies in the past and the present, the more that Bitcoin can be very valuable and can be of big help to people holding and using the said cryptocurrency. Now, the idea of the government introducing their own state-owned and backed cryptocurrency will not be working that much because it will just be representing the government and the failed economy. There would never be an excitement with that kind of idea. I am hoping that the government of Venezuela will realize this hard truth.

[darkangel11]

They're showing the rest of the world that having an unstable currency isn't the end of the world. Switching to something less prone to government manipulation like cryptocurrencies is easy, fast and cheap. The prices in Venezuela are growing by 500% a year due to hyperinflation, it's more or less the same as in Zimbabwe and the whole thing is getting out of control while the police is raiding people's houses to steal their mining rigs. Yes steal because mining is still legal there! It's all going to end bloody, much like it did in some Muslim countries in the recent years.

[Carlton Banks]

For Villar, the stakes are especially high, and not just for his business. An engineer who once ran a biometrics enterprise, he is staking his financial future on the development of a game involving an alternative cryptocurrency called PepeCash.

A dozen employees operate from a small office filled with computers in an industrial community east of the capital. All receive part of their salary in Bitcoin.

To all the people, forum trolls and media idiots alike, who say "but you can't use Bitcoin for anything because blahblahblah":

TELL THAT TO THESE PEOPLE. WHO ARE USING BITCOIN TO HOLD ONTO ANYTHING THEY HAD LEFT

Authorities have largely permitted trading of Bitcoin in Venezuela, though they have heavily fined and detained people who attempt to mine the digital currency.

Guess what these coward thieves did with the "evil Bitcoin computers" they stole? Yeah, that's right, they're mining with them.

The most senior police officer possible no doubt was asked to bring the mining ASICs to someone very close to Maduro, if not Maduro himself. As soon as any of these senior policemen figured out why, they either did the smart thing and started under-reporting the amount seized, or did the dumb thing asked to be brought into the deal.

That's your government for you girls and boys: corrupt, conniving, egotistical hypocrites

[aso118]

Bitcoin flourishes where ever the government screws up. And boy, has the government screwed  up big time in Venezuela. The decree making bitcoin illegal and the crackdown on miners just shows the extent to which governments can go. The use of Bitcoin in times of need, especially when money is required to save your life, shows that people might just ignore governments on this one.

[1Referee]

It's sad to see these people suffer so much, but it perfectly demonstrates how useful Bitcoin is, and how much freedom it offers to people being suppressed by their shitty government. I seriously hope that we'll see Lightning Network become fully operational before the end of 2018, because that more than anything will stimulate people to utilize Bitcoin in a far more efficient and cost friendly way. Imagine what these people would have gone through if Bitcoin wasn't even invented yet. It basically means that they would have no way out, and for that reason would have gone down with their corrupt and worthless economy. Great benefit for them is that the price has been going up continuously, so instead of losing purchasing power, they gain purchasing power.

[FollowSynergy]

Definitely cryptocurrencies may and already change people`s lives. Venezuela is a prime example what could happen when community completely rely on government, bankruptcy or crysis may happen in every country, and once the dust settles in wasteland, there leaves only smart individuals and strong decentralized network for exchanging goods and money for a living.

[CyberKuro]

It's sad to see these people suffer so much, but it perfectly demonstrates how useful Bitcoin is, and how much freedom it offers to people being suppressed by their shitty government. I seriously hope that we'll see Lightning Network become fully operational before the end of 2018, because that more than anything will stimulate people to utilize Bitcoin in a far more efficient and cost friendly way. Imagine what these people would have gone through if Bitcoin wasn't even invented yet. It basically means that they would have no way out, and for that reason would have gone down with their corrupt and worthless economy. Great benefit for them is that the price has been going up continuously, so instead of losing purchasing power, they gain purchasing power.

Sadly, yes. People in there have to struggle for their daily living, fortunately, bitcoin become a lifesaving as Bolivar almost worth nothing.
The adoption of bitcoin in Venezuela surpass my expectations as; Whether they’re buying food, plane tickets, or even paying employees, Bitcoin is now a common mode of payment for Venezuelans.
After all the hassle of blockchain network, it becomes harder to transact using bitcoin as we have to pay higher fees and it takes a long time to be confirmed.
Yes, blockchain really needs to be upgraded or lightning network be implemented asap, without too much drama.

[hatshepsut93]

I got curious if Venezuelans are really using Bitcoin for everyday transactions with current fees or maybe they are using alts instead?

I've tried to check Venezuelan subreddits, and here's what I've found, if anyone's interested:

https://www.reddit.com/r/vzla/comments/7hvlza/how_many_venezuelans_use_bitcoin/

If anyone here speaks Spanish, could you find and translate some info about Bitcoin from /r/vzla for us?

[Enjorlas]

And this is exactly why bitcoin can't be a bubble, unlike any other bubble, this one is used as a main currency in a lot of poor tier countries

[vit05]

But it is only Bitcoin? I have heard before that they mining Digybite and some people play a lot of games just too cash out some money. I think monero and other coins that is easier to hide would be better for them. But what this shows and could change forever cryptocurrency is that people could defeat a dictatorial government if they refuse to use fiat money.

[oztusk]

But it is only Bitcoin? I have heard before that they mining Digybite and some people play a lot of games just too cash out some money. I think monero and other coins that is easier to hide would be better for them. But what this shows and could change forever cryptocurrency is that people could defeat a dictatorial government if they refuse to use fiat money.

ha.. we trying that in u.s. too..

[Taki]

It's sad to see these people suffer so much, but it perfectly demonstrates how useful Bitcoin is, and how much freedom it offers to people being suppressed by their shitty government. I seriously hope that we'll see Lightning Network become fully operational before the end of 2018, because that more than anything will stimulate people to utilize Bitcoin in a far more efficient and cost friendly way. Imagine what these people would have gone through if Bitcoin wasn't even invented yet. It basically means that they would have no way out, and for that reason would have gone down with their corrupt and worthless economy. Great benefit for them is that the price has been going up continuously, so instead of losing purchasing power, they gain purchasing power.

Sadly, yes. People in there have to struggle for their daily living, fortunately, bitcoin become a lifesaving as Bolivar almost worth nothing.
The adoption of bitcoin in Venezuela surpass my expectations as; Whether they’re buying food, plane tickets, or even paying employees, Bitcoin is now a common mode of payment for Venezuelans.
After all the hassle of blockchain network, it becomes harder to transact using bitcoin as we have to pay higher fees and it takes a long time to be confirmed.
Yes, blockchain really needs to be upgraded or lightning network be implemented asap, without too much drama.

Yes, when your national currency costs nothing there is no other way than turn to crypto currencies. I do believe they don't use exactly bitcoin for payments and transactions, cause of the fee and slow speed of transactions. But I also have heard that the government is creating a national crypto to put it in the use, doubtfully it is going to be profitable, I just suppose politics are just trying to safe their own asses on the sinking boat.

[Guardian.P]

Bitcoin gives an opportunity to those countries that have problems with domestic economy to set them up. The fact is that some governments are preoccupied with something else and because of this they do not really benefit

[Carlton Banks]

After all the hassle of blockchain network, it becomes harder to transact using bitcoin as we have to pay higher fees and it takes a long time to be confirmed.
Yes, blockchain really needs to be upgraded or lightning network be implemented asap, without too much drama.

If you don't like drama, there's bad news: you are fueling the drama

With Bitcoin, you can choose:

• High fee, fast confirmation
• Low fee, slow confirmation

You said that transactions are slow and have high fees. That makes zero sense, and is also the same dramatic false picture that Bitcoin's detractors try to paint.

Venezuelans are probably using low fees and waiting several hours/days to get into the blockchain. And it wouldn't surprise me if there are alot of Venezuelans using Segwit addresses to get even lower transaction fees. As this story demonstrates, desperate situations force people to learn how best to survive

[damir10]

Because of the US pressure on some South American countries, they see crypto currency can be their survival tool for economical depressions. That's many legal authorities tries to make it popular but on the negative side, there are still bilion people who has no idea how to use Computer, smart phones. I'm looking forward to see some mobil tools, or electronic tools instead of uploading apps to mobile phone. Therefore, they may be more easy for older people.