Venezuela & The Bitcoin

[Wintersoldier]

Venezuela is country that isn't not really a progressive one when it comes to economy, then why their leaders prefer choosing cryptocurrency as their mode of payment? It made me more amaze for their leadership, because of the open minded leaders which has adopted on the system that crypto has; even if it was recently encountering several downturns. Their people towards the economy, was strongly motivated on how crypto works on particular advantages that provides financial freedom to all individuals.

I don't think it would provide them with lots of benefits, though it is evident that they have their leaders who are pro-cryptocurrency, it is still a good thing that their leaders should focus on maintaining the good economy first before they try to grasp new technology, because for me, how could we excel if we aren't really aware and perfected the basics of maintaining good economy? But also I consider the chances that they might find the best way to make their economy good with cryptocurrency.

[electronicash]

Then again, since exchanges report fake volume sometimes, perhaps this data is inaccurate as well. As far as I know, the majority of the population is leaving below the poverty line and unemployment is at 30%.Unfortunately, in such a terrible situation, I don't think Bitcoin can help Venezuela or vice versa.

Sometimes it is really a little funny to me when Bitcoin connects with Venezuela in every way possible, either as the savior of the entire monetary system of the country or as some straw of the salvation of ordinary people. Although the percentage of unemployed is very large, the minimum wage in August was only $2 which is really not enough for any kind of life. It should also be noted that more than one million people have left the country in recent years.

Bitcoin can't help Venezuela, they need a lot more than that, above all, they need a miracle - and we all know that miracles happen very rarely, especially if you have bad relations with the masters of the world.

miracles doesn't happen when a country's situation is like Venezuela against the masters of the world who just want to milk the country. UK and US are against their current leader. their government doesn't have much option since Chavez death but even so they can still be the top oil exporter.  the country can produce more oil for China but these UK and US doesn't like that. and they will bring Marudo down. but BTC will serve their economy to be stable. they do have the resources, they can ignore all if they are just unified.

[Kprawn]

One thing we should always remember is that Bitcoin cannot solve problems with governments. The Venezuela's government f%^^&ed up the local

economy and hyperinflation is killing the local currency. Today you can buy 3 bottles of milk with say 1000 Bolívar and within a couple of hours you

can only buy 2 bottles of milk. So what do you do... you shift your Bolívar into something that would protect the value of your local currency, so

that you can buy 3 bottles of milk with it, even after the value has dropped. The Bitcoin price gradually goes up, so you get even more milk for the

bitcoins that you bought before. 

[mrquackquack]

Right but the question still isn't answered.. If you have milk, bolivars etc etc.. then why are you so reliant on another govt?

[Artemis3]

Then again, since exchanges report fake volume sometimes, perhaps this data is inaccurate as well. As far as I know, the majority of the population is leaving below the poverty line and unemployment is at 30%.Unfortunately, in such a terrible situation, I don't think Bitcoin can help Venezuela or vice versa.

Sometimes it is really a little funny to me when Bitcoin connects with Venezuela in every way possible, either as the savior of the entire monetary system of the country or as some straw of the salvation of ordinary people. Although the percentage of unemployed is very large, the minimum wage in August was only $2 which is really not enough for any kind of life. It should also be noted that more than one million people have left the country in recent years.

Bitcoin can't help Venezuela, they need a lot more than that, above all, they need a miracle - and we all know that miracles happen very rarely, especially if you have bad relations with the masters of the world.

miracles doesn't happen when a country's situation is like Venezuela against the masters of the world who just want to milk the country. UK and US are against their current leader. their government doesn't have much option since Chavez death but even so they can still be the top oil exporter.  the country can produce more oil for China but these UK and US doesn't like that. and they will bring Marudo down. but BTC will serve their economy to be stable. they do have the resources, they can ignore all if they are just unified.

Would you mind stopping with your political agenda? What you say is utter garbage, and it will force me to debunk you. This gets annoying after doing it for years...

This has nothing to do with "embargoes", don't bring that utter crap. China doesn't use or care for the USD, we send them crude OIL, in fact we are in debt to them for over 60 thousand million USD or such huge amount it would be cheaper for them to just take us over Hong Kong style and be done with it (and we would probably live better as their colony than under Maduro anyway).

Next is Russia, they also don't care for the USD. Maduro was quick to give them what little gold was brought by Chavez back in the day, in exchange of weapons, and who knows what else...

America threatens anyone dealing not with Venezuela, but with certain Venezuelan individuals, its quite the list, all related to Maduro and his cronies, Padrino, Diosdado etc, and all from the untouchable "nomenklatura". Any regular Venezuelan not related to them, can still do business just fine. Too bad the government is the one that authorizes who does business and who doesn't...

However, this doesn't concern neither Chinese nor Russians (and various non-aligned), which are the main "friends" of Maduro anyway.

To put it short, the reason of our misery is only one: The economy. It is not a foreign cause, but an internal cause. The economy is strangled by those in power. There are of course other factors, such as the rampant crime and corruption, but lets keep this focused.

You bring Guaido, but he is nothing more than a symbol if at all. The political opposition is powerless in a country that imprisons and kills dissent. The very reason Maduro will remain eternally in power unchallenged, and millions giving up hope and leaving the country.

As for Localbitcoins, the reason there is so much movement, is because of traders. No, not all transactions have to do with Venezuelans living in Venezuela exchanging for their daily needs. There are people (many not even living within) making lots of money with the terrible distortion this "command" economy produces.

Reality is, people do not use bitcoin in the street, or merchants receive it at all. You DO see (now that its "legal") some things with prices listed in USD, but aside VES, NOTHING else. Not even petros, petros simply do not exist in the street save for the one infamous chain store owned by who knows whom which is closely tied to the government and uses a very disadvantaged exchange rate you might end paying twice for the same thing than if you exchanged your petros for bolivares before going... But that's the typical Venezuelan merchant tradition: 100%+ gain or none, which is also why they HATE competition and depend on the State strong-arming them out of existence (yet another tradition).

If the "masters of the world" wanted the country, they would have taken it already. Fact is, they don't care. Trump is very happy doing, whatever, and the UK? They never had a presence or remote interest in this place. The OIL cartel is more than happy that Venezuela's production went under 1 million barrels per day (from 3 million, 20 years ago). All thanks to mismanagement, corruption and the broken "command" economy that ruined almost everyone, including State owned companies.

Hyperinflation, product of printing, caused by Maduro's overbudgeting. Because the free market means US imperialism and that is the root of all evil, and socialism cannot tolerate such a thing as people deciding things for themselves, they MUST OBEY THE STATE, or else...


Want to get close to the truth? Read this article: What Venezuela Needs for a Prosperous Future

[CryptoBry]

Venezuela is always on the news because this country has become the so-called "poster child" on how a misfortune to a country's economy become the catalyst for some people to adopt and use Bitcoin as part of their survival strategy as the whole economic system is ravaged by gargantuan and seemingly insurmountable problems left and right. The recent high in trading bolivar to Bitcoin is just one of the symptoms that there is really a big problem with this country. However, one thing I realized is that Bitcoin can be doing well when there is something unfortunate happening like this one in Venezuela...now we can look at this positively or negatively depending on what lens to focus with. Definitely, Bitcoin will continue to be a premium digital asset in Venezuela for as long as the government could not be able to rein in the running away inflation and other related problems of the economy.

[yulionoo]

Venezuela in the last few years experienced a severe economic crisis that made the Bolivar currency fall and not worthless. so to be able to survive the people began to look for alternative means of payment that are more powerful and finally they chose bitcoin. so do not be surprised if the demand for bitcoin in venezuela is increasing. and the Venezuelan government will also make its own crypto called PETRO. making petro coins will be pegged with oil. We know Venezuela's biggest income comes from oil.

[BlacksmithCorporation]

I think bitcoin helps Crypto users in Venezuela go through the government's breakdown and can help them buy food and supplies from other countries. It can also help them store their assets when their money is virtually devalued

[Oneandpure]

Then again, since exchanges report fake volume sometimes, perhaps this data is inaccurate as well. As far as I know, the majority of the population is leaving below the poverty line and unemployment is at 30%.Unfortunately, in such a terrible situation, I don't think Bitcoin can help Venezuela or vice versa.

Sometimes it is really a little funny to me when Bitcoin connects with Venezuela in every way possible, either as the savior of the entire monetary system of the country or as some straw of the salvation of ordinary people. Although the percentage of unemployed is very large, the minimum wage in August was only $2 which is really not enough for any kind of life. It should also be noted that more than one million people have left the country in recent years.

Bitcoin can't help Venezuela, they need a lot more than that, above all, they need a miracle - and we all know that miracles happen very rarely, especially if you have bad relations with the masters of the world.

miracles doesn't happen when a country's situation is like Venezuela against the masters of the world who just want to milk the country. UK and US are against their current leader. their government doesn't have much option since Chavez death but even so they can still be the top oil exporter.  the country can produce more oil for China but these UK and US doesn't like that. and they will bring Marudo down. but BTC will serve their economy to be stable. they do have the resources, they can ignore all if they are just unified.

When country faced economic crisis situation maybe they will take other solution with their payment way like adopting bitcoin as legal currency, last year Venezuela faced with bigger economic crisis and they are trying for receiving bitcoin to get positive payment transaction and get economic back to normal and get much benefit again.

[DevilSlayer]

Then again, since exchanges report fake volume sometimes, perhaps this data is inaccurate as well. As far as I know, the majority of the population is leaving below the poverty line and unemployment is at 30%.Unfortunately, in such a terrible situation, I don't think Bitcoin can help Venezuela or vice versa.

Sometimes it is really a little funny to me when Bitcoin connects with Venezuela in every way possible, either as the savior of the entire monetary system of the country or as some straw of the salvation of ordinary people. Although the percentage of unemployed is very large, the minimum wage in August was only $2 which is really not enough for any kind of life. It should also be noted that more than one million people have left the country in recent years.

Bitcoin can't help Venezuela, they need a lot more than that, above all, they need a miracle - and we all know that miracles happen very rarely, especially if you have bad relations with the masters of the world.

miracles doesn't happen when a country's situation is like Venezuela against the masters of the world who just want to milk the country. UK and US are against their current leader. their government doesn't have much option since Chavez death but even so they can still be the top oil exporter.  the country can produce more oil for China but these UK and US doesn't like that. and they will bring Marudo down. but BTC will serve their economy to be stable. they do have the resources, they can ignore all if they are just unified.

When country faced economic crisis situation maybe they will take other solution with their payment way like adopting bitcoin as legal currency, last year Venezuela faced with bigger economic crisis and they are trying for receiving bitcoin to get positive payment transaction and get economic back to normal and get much benefit again.

The Venezuela is still facing crisis and it is because of the corruption of their president that causes hyper inflation where their money become worthless. This financial crisis lead to fled by their citizens to another country. Their governement are now also using bitcoin in terms of mode of payment. It is good to then because their have advantages that they keep getting.

[DdmrDdmr]

<…> Their governement are now also using bitcoin in terms of mode of payment. It is good to then because their have advantages that they keep getting.

It’s not quite that simple though. The state oil company, PDVSA, is having real issue managing to get paid for their petrol in a currency. EEUU sanctions on Venezuela affect their banks, and the possibilities of getting paid in USD, and are therefore reaching out to crypto as a form of avoiding the payment blockade. It’s therefore not a happy choice in a gee wiz look how cool type scenario, but one that confronts politics with the country’s needs, being the general polulation the one who suffers.

[todiboa]

The crisis in Venezuela has been going on for a long time. Unfortunately, Petro could not change anything in the country. People want stable money, and Bitcoin seems to be a good fit. However, this is only a temporary solution, because the government is obliged to do something. Perhaps the adoption of Bitcoin as an alternative currency may help, but Venezuela is unlikely to take such measures.

[fullhdpixel]

https://cointelegraph.com/news/venezuelan-bolivar-trading-volumes-on-localbitcoins-hits-new-record-high

Any thoughts or ideas?

The way I see it, it's only the rich in that country that will be able to invest in Bitcoin, the poor ones will be finding it difficult because the price of Bitcoin is high there. So, I don't really see how it's going to change things there, they should add more focus on fighting for a better economy and a good government to make things better for the country and the poor.

Bitcoin can't magically change a country's economy, something more has to be done, unless they will invest heavily in Bitcoin (more than other countries )  and hold till the price bubbles and they sell it, maybe that will have some impact. I doubt Venezuelan alone will be having power to pump bitcoin prices at least to the current ATH. If they will be able to do anything similar to that and making profits from their own pump then I believe bitcoin may give them some chances to find a immediate recovery from economic crisis in permanent manner too.

[TRONTON]

it's not surprising why bitcoin concentrations tend to be higher there compared to petro, I'm surprised they cut petro reserves to only 30 million barrels.

movement in localbitcoins is also a reaction of its citizens regardless of the economic burden of embargo sanctions faced by the government. I still believe they are still noisy with panic, and don't know how long they will be able to minimize international sanctions and gradually recover.

[DreamStage]

Could be some multi millionaire company trying to buy at Venezuelan territory.

Or maybe their government or some local citizen that become rich. Who knows since it's unknown the source of it.

Also a pump dump could be the reason for a sudden buy adoption.

Someone is definitively trying to achieve greatness using bitcoin which is a good thing.

[rijaljun]

Could be some multi millionaire company trying to buy at Venezuelan territory.

Or maybe their government or some local citizen that become rich. Who knows since it's unknown the source of it.

Also a pump dump could be the reason for a sudden buy adoption.

Someone is definitively trying to achieve greatness using bitcoin which is a good thing.

That makes sense.

Well, I can't imagine a big company or a country govt trying to control Venezuela through this event and somehow it is possible.

[BitHodler]

movement in localbitcoins is also a reaction of its citizens regardless of the economic burden of embargo sanctions faced by the government.

I find the volumes on localbitcoins not that telling, especially with how it doesnt show why the coins have been bought. I'm leaning towards speculative buying and selling rather than people buying Bitcoin as safe haven.

Another thing is that due to their fiat currency losing purchasing power constantly, the increasing volumes on localbitcoins are kinda deceiving because in USD the volumes haven't actually gone up, but have been trending down.

[posi]

The crisis in Venezuela has been going on for a long time. Unfortunately, Petro could not change anything in the country. People want stable money, and Bitcoin seems to be a good fit. However, this is only a temporary solution, because the government is obliged to do something. Perhaps the adoption of Bitcoin as an alternative currency may help, but Venezuela is unlikely to take such measures.

The issue about the Venezuelan should have been fix all this while but their government is extremely not taking the right measure and he's running the country through his pride which I believe was one if the reason whooy the US President administration required sanctions on Venezuela and freezing of their government assets in the United States.

[rdbase]

Venezuela people are in a good position if they are going to embrace bitcoin as mass volumes are being bought up in record numbers right now.
Have you seen those purses made out of bolivars?
They have the cheapest electricity in south america and are using this to mine bitcoin like crazy.
Congratulations to them if they can adopt it as a stable and reliable currency for their country.
All the power to them!

[Artemis3]

<…> Their governement are now also using bitcoin in terms of mode of payment. It is good to then because their have advantages that they keep getting.

It’s not quite that simple though. The state oil company, PDVSA, is having real issue managing to get paid for their petrol in a currency. EEUU sanctions on Venezuela affect their banks, and the possibilities of getting paid in USD, and are therefore reaching out to crypto as a form of avoiding the payment blockade. It’s therefore not a happy choice in a gee wiz look how cool type scenario, but one that confronts politics with the country’s needs, being the general polulation the one who suffers.

PDVSA still gets EUR and USD via proxy countries. Most of the export to the US stopped when Trump seized Citgo anyway. It is very unlikely they are using crypto for anything. Of course they would love if others used petro, but the international trading partners won't.

Of course Trump's actions were the perfect scapegoat to cover the economic ineptitude and disaster from the "socialists", and that is exactly the official propaganda: that absolutely everything is the fault of USA. But it isn't, and most people don't fall for it, we might be oppressed, but not idiot.

If Trump hadn't done nothing, the situation here wouldn't have improved either; and yes, the fault would still lie in the USA... Most of you will never have to live this, so naturally you won't get it. But those that survived the eastern bloc soviet union days, might understand. Even if USA dropped the sanctions against the individuals from Maduro's regime, nothing would change, and they would STILL be at fault. These sanctions only pissed those corrupt fellows that kept spending fortunes in USA. Stomping in the misery of the people, those close to the regime just love spending fortunes in Washington DC, New York and Miami, and all of that with dirty money from Venezuela, THE REASON everybody else is piss poor and miserable earning 2$ or such per month. If anything, just revoking their visas and kicking them out was commendable. Rest is meh. They still live here like kings away from the impoverished masses, and often travel to other countries that give them the same treatment.