Venezuela's central bank is holding Cryptocurrency!

[tadpole_bitfrog]

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

[NathanJB]

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

The more demand there is to Bitcoin, the better. That is the basic logic of something whose value is determined exactly by that rule.

This kind of news is actually widespread even before. It has already spread before that Venezuela will make use of Bitcoin to get away from the sanctions imposed upon them from their western enemies. And this is really a good development for Bitcoin. Perhaps the only negative thing that one can deduce from it is that associating these days with Venezuela's Maduro government is bad for its reputation.

[th3nolo]

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

Venezuela is about to be classified as a rogue nation, to put you into context the highest officials of the country taken a trip to some of the known rogue nations in the World.

One of them is in Nort Korea, another one is in Cuba, you get the image of what's happening?

But even after all I have said about Venezuela, that's not something bad for Bitcoin.

Criminals have been using bitcoin since it's born, and that's haven't made it illegal. Yep, I got you, some investor might be afraid of Bitcoin being used as a way to clean money for bad nations and criminals.

But bitcoin is Pseudo anonymous that means that any movement can be traced, it's easy enough for a developed country to put an AI that search for the Addresses of the funds held by one of this governments

And then putting sanctions or even seize the money, if they try to clean it.

In short: Is not good but it's also not bad for bitcoin.

[DBronze98]

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

The more demand there is to Bitcoin, the better. That is the basic logic of something whose value is determined exactly by that rule.

This kind of news is actually widespread even before. It has already spread before that Venezuela will make use of Bitcoin to get away from the sanctions imposed upon them from their western enemies. And this is really a good development for Bitcoin. Perhaps the only negative thing that one can deduce from it is that associating these days with Venezuela's Maduro government is bad for its reputation.

What about Venezuela's central bank, bad or good? I am always afraid that the volatility of bitcoin will affect the assets of the Venezuelan nation. If so, the value of Bitcoin is only $ 100 one day, then Venezuela will be in crisis again?
From my point of view, I think this is an extremely wrong decision of them. Bitcoin is one of the high-valued assets because of manipulation, when a country holds so many assets, the fate of that country will be so precarious.
A good central bank will always want to hold low-yielding but sustainable types of assets, I think the central bank asset manager is in trouble.

[ShooterXD]

Not only Venezuela, China and Russia too.

Looks like the communist nations are in preparativo to something big coming.

The great crisis is coming?

[13abyknight]

According to the latest information from Bitcoin.com

A source would've been great but as it stands, there are multiple national banks around the world which are holding onto cryptocurrencies. This might not be evident on the surface level but digging deep, there seems to be a direct or indirect link between the huge amount of funds and big banks being associated with it.

Coming down to the case of Venezuela, the country has been undergoing hyperinflation for a few years now and with an unstable government, the door to all sorts of corruption is open which could include laundering money through crypto via the central bank.

[TheCoinGrabber]

A link to the article would have been helpful. Back on topic, I'm not surprised. I remember South Korea accusing the North to be behind a huge hacking of one of their exchanges.

For all we know they could be already using bitcoins to pay smugglers to bring in goods they normally can't due to embargoes. Or they could be preparing for a crisis and so are stashing on crypto, which is not a bad idea considering their own fiat is practically worthless.

Or both.

[boltz]

This is actually true because Venezuela has a such a big money crisis when inflation has rise on the point when money became almost worthless and as far as I know with the lowest monthly payment you can get a hamburger and that's it. Regarding the situation, Venezuela and its citizen are getting into bitcoin like crazy and not only in bitcoin , they seemed to love masternodes and they are buying cheap masternodes like Arion and similar cryptos.

The central bank of Venezuela is holding and buying Bitcoin like all the other Central Banks , there was a video from 2015 where the EU parliament encourage the banks to try and hold at least 1 bitcoin and since then I'm sure they bought a lot of bitcoins and ripple and we can see the effect in the current prices.

Also a new a new recession might be in sight as the charts don't look so good so the effect might be bad in the end but we will see.

[The Sceptical Chymist]

Looks like the communist nations are in preparativo to something big coming.

The great crisis is coming?

Yeah, but bitcoin isn't exactly a safe-haven asset to be holding in the event of a crisis--unless those countries are expecting the end of the banking system (which was feared back in 2008 or so).  What if bitcoin continues to decline in value?  They're going to be left holding a depreciating asset, and it doesn't make sense that they'd do that.  If Venezuela was going to be stocking up on anything, I would figure it'd be gold & silver, not bitcoin.

According to the latest information from Bitcoin.com, they have reported on this.

Just a suggestion: you might want to provide a link when you're sparking a discussion based on news reporting.  That way we don't have to go digging for whatever article you're referring to.

[teosanru]

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

The Venezuela's economy has crashed considerably in past due to Oil price crisis and bad administration. Their currency was pegged against the USD at a fixed rate by government but in reality common public was not able to buy the currency at that rate. This rate was available only to some bureaucrats and top leaders who were getting richer and richer and common public was left with no option but to trade this currency in the local black market where rate is 20-30 times worse than what pegged by government. This way Venezuela's economy is imploding more and more. So the only way out left now is cryptocurrency which is why there government is buying BTC in order to strengthen their economy with a more concrete asset.

[STT]

I dont think its a negative more a sign of the times, eventually I expect far greater usage of both gold and other commodity agreements.    The trend over the majority of my lifetime has been towards holdings of debt, we have a crescendo and then a silence much like the drama of an opera we will have to start again with proper value attributed to various alternatives.   Venezuela is discovering this today because they are banned from Dollar but in any case the world will move away from its peak usage of just one nations currency in this way.

Dollars are heavily held as cash by quite large criminal enterprise as its liquidity allows easy disposal but Bitcoin is always compared to gold and on at least this dynamic its probably a good fit.    This is not really a negative on Bitcoin itself, its a free currency available for use by anyone.   The first use of BTC in Venezuela was by its citizens as protection against its government and their capture and destruction of their national currency, for similar reasons Bitcoin can count itself popular in China and owes some of its popularity for helping people all over the world recapture some remnants of capitalism in their own finances.
    I mention gold as it was and is used in Venezuela as freely exchangeable, I believe the government is promoting gold mining within its borders and that makes alot more sense for them then the poor attempts to create a crypto currency.   They had no understanding of free enterprise but commoditys can be utilized even with a rough understanding, sadly all the oil they have requires more attention and expertise to refine properly.

[styca]

Venezuela is about to be classified as a rogue nation, to put you into context the highest officials of the country taken a trip to some of the known rogue nations in the World.

One of them is in Nort Korea, another one is in Cuba, you get the image of what's happening?

I'd agree that North Korea is a rogue nation. Venezuela and Cuba, not so much, I think they are stigmatised because they dared to stand up to the US. Venezuela was doing well for a time under Chavez, but eventually the massive sanctions have the desired effect.

If a rogue nation is one that is a threat to peace in the world, then the US and Israel have got to be up there. Plus my home country, the UK - one example, we've been happily exporting arms to Syria, killing innocent civilians for profit... but you never see the UK on a rogue nation list.

[ShooterXD]

Looks like the communist nations are in preparativo to something big coming.

The great crisis is coming?

Yeah, but bitcoin isn't exactly a safe-haven asset to be holding in the event of a crisis--unless those countries are expecting the end of the banking system (which was feared back in 2008 or so).  What if bitcoin continues to decline in value?  They're going to be left holding a depreciating asset, and it doesn't make sense that they'd do that.  If Venezuela was going to be stocking up on anything, I would figure it'd be gold & silver, not bitcoin.

Maduro (Venezuela president) sended all gold reserve to Russia few months ago. Russia, China, North Korea, Venezuela and Cuba never worked together like now, helping eachothers and protecting yourself from USA.

Maybe the craziest acts coming from USA is only a predict about the future crisis, like the atack in arabic crude oil reserve.

We need to pay attention to follow the market and choose the best for our money.

All of this can be only conspiracy theory, but have much sense.

[STT]

Venezuela was doing well for a time under Chavez,

The oil price was doing very well, if we look back under the regime range annually for each ruler and compare oil price it should show Chavez had a far more favorable tailwind and the benefit of previous work and assets built up.
   This country has the largest proven oil reserves in the world, potentially its richer then Saudi Arabia, we have to examine the details of why their fortunes differ so greatly and part of it is the oil type extractable and how it relates to the oil price.   The Saudi family have a cost of extraction and sale even below $50 and no great effort is required beyond local tensions, Venezuela has heavy sour crude with sulphur that requires refinement before sale.
   Venezuela  cannot afford to nationalize their industry when sophistication and efficiency are required to receive a profit, if they become poor it is by they own lack of understanding on this.

[1Referee]

I'd agree that North Korea is a rogue nation. Venezuela and Cuba, not so much, I think they are stigmatised because they dared to stand up to the US. Venezuela was doing well for a time under Chavez, but eventually the massive sanctions have the desired effect.

Fundamentally there is no difference between North Korea, Venezuela and Cuba. It's not the people there who are rogue, but the leaders and their elite minions. North Korea is taking things to another level, but we also shouldn't forget about the US propaganda machine that's out to make North Korea look like a threat to the western world in every possible way.

I have seen the US commit more crimes against humanity than any other country most people seem to fear. People however are too ignorant to look through that to read between the lines.

[Shenzou]

If this is real i can't imagine what might come up of this and to be honest this seems an alternative plan to them saving the economy from inflation or a way to save up for what it might be the next world's currency, imagine if they were like holding a large amount of bitcoin and at some point where bitcoin reach 100k they would have a reserve that could change the course of their economy, and the economy is so bad right now that their only solution to fix it is to go completely crypto and scrap their fiat which is worth nothing.

[Razick]

Well it's a good idea for any economy to hold cryptocurrency because the upside is much greater than the minimal risk that comes with investing in it. Hopefully it works out for Venezuela and their current economic nightmare changes for the better!

[Febo]

Venezuela's central bank is holding Cryptocurrency!

Are you new?  They not only holding cryptocurrency they issued cryptocurrenncy named Petro. That was years ago.   That si probabyl reason why their currency is slosing value so fast since they daytrade.

[micher143]

Venezuela's central bank is holding Cryptocurrency!

Are you new?  They not only holding cryptocurrency they issued cryptocurrenncy named Petro. That was years ago.   That si probabyl reason why their currency is slosing value so fast since they daytrade.

Yeah, after the super inflation of their currency they transfer to cryptocurrency, I just have no news regarding what's their status regarding running a country using a cryptocurrency as mode of payment. that is the first step for other countries that is suffering on inflation to transfer into crypto.

[Experia]

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

I guess you better sight the link here so that people will know what is the real story. Anyway, it is a good point that government are engaging on cryptocurrency specially if they are truly holding coins, they are not doing that to demolish the cryptocurrency but they had the plan in the future because they dont waste money to hold and stay those coin in their system without any futuristic plan.