Can bitcoin help rebuild Venezuela? - Darb Finance

[Bitcoin Seller]

I don’t think Bitcoin itself can help Venezuela recover. However, if you create a favorable investment area in the country, with a ready-made business, and attract external investment capital into the country, it will definitely help.

It helps people already. To "deceive" American sanctions, Bitcoin is used already in the airports. People start to convert everything that they get into BTC as the hyperinflation is visible - the residents of the countries carry money in huge bags as even paper cost more than this money itself! Venezuela tries to create its own crypto, but I guess people will trust Bitcoin only.

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[whyrqa-1]

I don’t think Bitcoin itself can help Venezuela recover. However, if you create a favorable investment area in the country, with a ready-made business, and attract external investment capital into the country, it will definitely help.

I am sure that investors will not invest in the economy of a country in which there are huge problems with the courts, law enforcement system and corruption.  As history shows, first you need to put things in order in the country, and then attract investment.

[Ranly123]

surely it can be as long as the country's government does not repeat the mistakes that have been made and its people also want to help improve the economy in me most likely the country will quickly experience good and fast-moving changes too

Do you think their kind of governance will change? Yes, Bitcoin can rebuild Venezuela's economic growth but with those corrupt politicians that will hinder it's progress, I think nothing can be changed.

[Saint-loup]

Bitcoin can't rebuild an entire economy of a country becauseit is a limited currency but it can help people to meet their needs. At present, Venezuela need to have a strong mandate from the people to start rebuilding its economy that is in crisis. The nation need to resolve first the leadership of the country if the present leader is ineffective in solving the crisis in that country.

Well according to Trustnodes and the datas from Localbitcoins, Venzuela is handling about $7 million of bitcoins in peer to peer exchanges per week, and 600units in Bitcoin.

They’re handling about BTC600 a week, but due to bitcoin’s rising price and due to continued hyperinflation in Venezuela, the fiat equivalent of bitcoin volumes look parabolic.

Part of the reason for this growing bitcoin popularity in Venezuela, which has spread to their neighbors like Colombia, is because of US sanctions.

https://www.trustnodes.com/2019/08/06/bitcoin-fiat-volumes-in-venezuela-all-time-high-on-us-sanctions

And according to cryptoglobe, last month the peer to peer exchanges on LocalBitcoins, reached its highest trading volume ever in the country "coinciding with a drastic hyperinflation of the national currency".

https://www.cryptoglobe.com/latest/2019/08/localbitcoins-trading-volumes-hit-new-high-in-venezuela-as-inflation-keeps-rising/

[Muffinmanlet]

Only thing that can help Venezuela is to discard their socialism and begin anew with a model based more on capitalism, a small state, and personal freedom.

[rima valen]

Venezuela is one of the most oil-rich countries. But right now Venezuela is experiencing a very severe crisis. The reason is the drop in oil prices. As much as 95 percent of Venezuela's income from exports. This means that when oil prices are high, a lot of money flows into the Venezuelan government's income. But when oil prices plummeted in 2014, all important government programs had to be stopped. Plus hundreds of thousands of Venezuelans leave their country. Venezuela is increasingly short of quality residents and the future is bleak. I am very sorry for a country that used to be very safe but now it is devastated and if I think bitcoin can only help a part of the Venezuelan economy but it can't help 100% you know the bitcoin movement like how

[guoyu78]

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This is the first time that I am seeing analysis about their practical interest in cryptocurrency and If they are really making use of bitcoin as you said, I think it would at least assist a little bit in helping them balance their economy, but I don’t see it completely rebuilding it for them.

There is need for their government to do beyond cryptocurrency alone and then look into other system they can join to the use of cryptocurrency to help them and that is the only way that any of their activities in cryptocurrency would really have any effect over there economy. This figure you really quoted is really a big amount of money to be trading per week, and if bitcoin can really solve part of their challenges, I am sure that they would be number one country that will always support cryptocurrency.

[TheCoinGrabber]

I saw the comments on the first page so I didn't open the link. Knowing what's happening there, ANYTHING can be of help though I'm not sure how long they can keep using bitcoins. Transactions isn't exactly fast and I can imagine that their electricity situation has gotten only worse.

A way to exchange value underground would help them survive but not exactly thrive unless their government changes.

[Chrystora123]

Based on the news, I see there are 6 causes of Venezuela bankrupt
- Declining oil exports
- In debt
- Incorrect Economic Policy
- Inflation Increases sharply
- Business and Industry
- Corruption
this is a classic problem, and I'm very sure if Bitcoin and cryptocurrency are able to rebuild Venezuela

Bitcoin can't rebuild an entire economy of a country becauseit is a limited currency but it can help people to meet their needs. At present, Venezuela need to have a strong mandate from the people to start rebuilding its economy that is in crisis. The nation need to resolve first the leadership of the country if the present leader is ineffective in solving the crisis in that country.

Venezuelan leaders must make a major overhaul, especially their country's political system.. if they want to open the way for cryptocurrencies. I am very sure that 5 out of 6 problems causing their country to collapse can be resolved.

[yvesp110]

I saw the comments on the first page so I didn't open the link. Knowing what's happening there, ANYTHING can be of help though I'm not sure how long they can keep using bitcoins. Transactions isn't exactly fast and I can imagine that their electricity situation has gotten only worse.

A way to exchange value underground would help them survive but not exactly thrive unless their government changes.

Bitcoin is just another form of money. You know it is the digital money that helps you make transaction more quickly and even multiply your value if you speculate in Bitcoin. The situation in Venezuela is not of financial kind but of political nature. The political scenario is pretty ill and this is the main reason of the weak financial condition of Venezuela.

[TheCoinGrabber]

I saw the comments on the first page so I didn't open the link. Knowing what's happening there, ANYTHING can be of help though I'm not sure how long they can keep using bitcoins. Transactions isn't exactly fast and I can imagine that their electricity situation has gotten only worse.

A way to exchange value underground would help them survive but not exactly thrive unless their government changes.

Bitcoin is just another form of money. You know it is the digital money that helps you make transaction more quickly and even multiply your value if you speculate in Bitcoin. The situation in Venezuela is not of financial kind but of political nature. The political scenario is pretty ill and this is the main reason of the weak financial condition of Venezuela.

Sadly true. They used to refine their own oil but their infrastructure has stagnated, heck even become obsolete, that now they only sell crude oil.

It would be interesting though if the government don't crack down on bitcoin (unlikely). Since their currency is now worthless and the dollar some use can be easily confiscated, we could see an economy develop that mostly use bitcoin.

[JohnBitCo]

I don’t think Bitcoin itself can help Venezuela recover. However, if you create a favorable investment area in the country, with a ready-made business, and attract external investment capital into the country, it will definitely help.

I am sure that investors will not invest in the economy of a country in which there are huge problems with the courts, law enforcement system and corruption.  As history shows, first you need to put things in order in the country, and then attract investment.

Investors needs a good economy situation and peace in the country and only then they will invest in any country. Venezuela is surely not a right place for the investors to invest  now. Implementing and making bitcoin legal only will have no effect unless you make the overall financial and economic condition better in the country.

[Questat]

It's the government's responsibility to rebuild it's country, bitcoin is just an option for people to save their money from hyper inflation.
Rebuilding a nation would result to creating jobs sustainable for people to live in a certain country, and bitcoin does not create job it only facilitate the online transaction, in short it's just a tool and it's up to the users on how to effectively manage that too.

[hulla]

Bitcoin will help the Venezuelan in terms of wants and needs but it will definitely not rebuild Venezuela because such responsible belong to the government and the major causes of the Venezuela problem is their government ego act of not seeking advice , not opening doors concrete inter businesses, electricity and relying on crude oil.

[Vektrum]

I don’t think that Bitcoin can help Venezuela, but I’m sure that Bitcoin is already helping people who live in this country. Thanks to Bitcoin, many residents of this country were able to avoid financial losses associated with the devaluation of the country's national currency, which makes Bitcoin valuable.

[bitsurfer2014]

Certainly Bitcoin and other cryptocurrencies will be a key factor in rebuilding Venezuela but we must emphasize the need for their Government to initiate drastic reforms, good governance and formulate new socio-economic policies to help alleviate its situation right now. Being a top oil producer in the world and an OPEC member, it has a rich oil resources that can make the life of every Venezuelan more comfortable and its somewhat ironic why they are in a crisis right now?

[samcrypto]

Bitcoin will help the Venezuelan in terms of wants and needs but it will definitely not rebuild Venezuela because such responsible belong to the government and the major causes of the Venezuela problem is their government ego act of not seeking advice , not opening doors concrete inter businesses, electricity and relying on crude oil.

Their government is the worst problem here, they are corrupt and didn’t do anything good to stop that hyper inflation. Bitcoin gives opportunity to everyone who are open to adopt and to use it, it will be hard for Venezuela to do that if other countries are preventing it, we should support them on that.

[7788bitcoin]

Certainly Bitcoin and other cryptocurrencies will be a key factor in rebuilding Venezuela but we must emphasize the need for their Government to initiate drastic reforms, good governance and formulate new socio-economic policies to help alleviate its situation right now.

It is a hard task to reform Venezuela from this slum, it is the biggest crises the world has seen and it is mainly due to bad governance and corruption and if you continue those bad policies for a while even if you are oil rich you will reap what you sow, bitcoin can help the citizens up to a certain point in trade and commerce and they could convert their wealth and store in bitcoin than their local currency.

Being a top oil producer in the world and an OPEC member, it has a rich oil resources that can make the life of every Venezuelan more comfortable and its somewhat ironic why they are in a crisis right now?

If there is bad policies and corruption for years and their income starting going down because of the oil price going down and the expenditure still continue to rise without any actions then you will end up like Venezuela.

[serjent05]

Certainly Bitcoin and other cryptocurrencies will be a key factor in rebuilding Venezuela but we must emphasize the need for their Government to initiate drastic reforms, good governance and formulate new socio-economic policies to help alleviate its situation right now. Being a top oil producer in the world and an OPEC member, it has a rich oil resources that can make the life of every Venezuelan more comfortable and its somewhat ironic why they are in a crisis right now?

I disagree, Bitcoin and cryptocurrency are just tools.  The one who will rebuild Venezuela is the government since they are the one who have the capability to do so.  Bitcoin and other cryptocurrency may help an individual but without the governments push, it will just help few and these are those who help themselves to know about cryptocurrency.

[Averim]

In this kind of situations bitcoin is not inaff, sure it can help a lot but in this situation it's a question of political stability.