Venezuela Planning New 100,000-Bolivar Bills Worth Just $0.23

[nomenclatur]

if the country is led by a wrong president then all that will be devastation like Venezuela this country is so rich in oil but now this country is hardly developed so much crime and also drugs there have been traded this country is so free and everything seems It will be worse if this continues. Corruption is also a problem for many countries which makes a country's economy worse.

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[South Park]

They should just stop printing cash, tis completely pointles. They already have cards/crypto, lets just use them and stop waste paper and inks

It's not possible, what you say makes sense but only if all the population had access to those services but it is obvious that a country that is going through inflation at such a high rate is going to have people that are very poor and that do not have access to those services, so they need to keep printing cash, but I ask myself how long can discontinue? This country has been in disarray for years and yet the government remains in place, how long the people of Venezuela will allow this?

[AndySt]

if the country is led by a wrong president then all that will be devastation like Venezuela this country is so rich in oil but now this country is hardly developed so much crime and also drugs there have been traded this country is so free and everything seems It will be worse if this continues. Corruption is also a problem for many countries which makes a country's economy worse.

Corruption is not the main problem for Venezuela, and the root of the problem is the difficult internal political situation in the country, plus poor economic management, plus external influence. It is precisely the oil wealth that has become a curse for Venezuela, because falling oil prices no longer compensate for the shortcomings of public administration and social distribution as in previous years, and the pandemic that has come also adds its own colors to the picture of events. Also, let's not forget that Venezuelan oil is not as profitable as Saudi oil due to its chemical composition.

[STT]

That is corruption, central powers are by force controlling distribution of capital and production.  Only the people at the very top and possibly the army who keep their jobs are benefiting from this policy.    There are dangers in centralised systems and misdirection like this; capitalism and various distributed means of competitive industry are not perfect but do not dominate in a negative unstoppable way such as this.

Many believe that the mining sector in Venezuela has been destroyed by nationalization

Its very likely many industries are lacking investment or even out right ruined by mis-management over decades.  Venezuela has the worlds largest oil reserves, no other country has access to the depth of oil proven available in Venezuela; however there is a giant catch that it requires innovation and efficiency in the processing of the oil as it is sour not sweet or simply sourced like Saudi Arabia or those nearby countries have.    Venezuela is especially vulnerable to failings of big government, red tape and political ineptitude.    Even the best CEO in private industry can be replaced but a dictator and the failure which surrounds and is enforced by his regime never changes until total collapse, it is sad to see in an advanced nation with such giant potential waiting for the skilled and willing.

[Vishnu.Reang]

if the country is led by a wrong president then all that will be devastation like Venezuela this country is so rich in oil but now this country is hardly developed so much crime and also drugs there have been traded this country is so free and everything seems It will be worse if this continues. Corruption is also a problem for many countries which makes a country's economy worse.

The problem is not with their president, but with the system. Even when Hugo Chavez was the president of Venezuela, the system was the same. However, during that time the crude oil price was quite high and therefore they didn't had to bother about the budget deficit and the exchange rate of the national currency. Now the crude oil prices have nosedived and these things can't be maintained any longer.

[oHnK]

if the country is led by a wrong president then all that will be devastation like Venezuela this country is so rich in oil but now this country is hardly developed so much crime and also drugs there have been traded this country is so free and everything seems It will be worse if this continues. Corruption is also a problem for many countries which makes a country's economy worse.

The problem is not with their president, but with the system. Even when Hugo Chavez was the president of Venezuela, the system was the same. However, during that time the crude oil price was quite high and therefore they didn't had to bother about the budget deficit and the exchange rate of the national currency. Now the crude oil prices have nosedived and these things can't be maintained any longer.

No matter how good the president is, if he is only a single-player then a country will not survive. The government, the system and the people are an inseparable chain. The country can advance because of the successful cooperation between the government and society. A corrupt government comes from a corrupt society too. So that the leader is the image of the community itself.

[South Park]

if the country is led by a wrong president then all that will be devastation like Venezuela this country is so rich in oil but now this country is hardly developed so much crime and also drugs there have been traded this country is so free and everything seems It will be worse if this continues. Corruption is also a problem for many countries which makes a country's economy worse.

The problem is not with their president, but with the system. Even when Hugo Chavez was the president of Venezuela, the system was the same. However, during that time the crude oil price was quite high and therefore they didn't had to bother about the budget deficit and the exchange rate of the national currency. Now the crude oil prices have nosedived and these things can't be maintained any longer.

This is the truth, it seems that many people in Venezuela believe that if Chavez was still alive things will be better but that is not true, the system was the same and the problem that the people of Venezuela are facing is systemic, they depended in a very high price for oil and for a long time this happened so it seemed as if their system worked, but they never saved a single penny of their oil profits and when the price went down their system became unstable and impossible to maintain.

[Abiky]

This is the truth, it seems that many people in Venezuela believe that if Chavez was still alive things will be better but that is not true, the system was the same and the problem that the people of Venezuela are facing is systemic, they depended in a very high price for oil and for a long time this happened so it seemed as if their system worked, but they never saved a single penny of their oil profits and when the price went down their system became unstable and impossible to maintain.

Exactly. Venezuela has a flawed system. And the government hasn't done anything to remediate the situation. The Central Bank of Venezuela is going to need to copy other countries' economic models in order to keep the nation's economy afloat. Venezuela's allies (such as China and Russia) have a good economic system that has allowed them to stay ahead of the game (despite recent US sanctions). Maybe Venezuela could learn something from its allies in order to put an end to its economic crisis? There are many ways to "fix" the Venezuelan economy, limited to the government's own imagination. The Central Bank of Venezuela could simply rely on a foreign currency such as the US Dollar, Chinese Yuan, the Russian Ruble or on a decentralized cryptocurrency such as Bitcoin or Ethereum. It could also tie the Bolivar to the value of precious metals like Gold or Silver.

As long as no one does anything to save the Venezuelan economy, the country will continue to sink deeper. People will continue in poverty as chaos persists in the nation. At least, there are some people using crypto to protect themselves against the hyperinflation of the Bolivar. Expect to see more people adopting Bitcoin and Dash as a medium of exchange in the country, while the Bolivar goes down the drain. If the trend continues, there may be no one left using the Bolivar for day-to-day transactions. Once that happens, Venezuela will become the first crypto-only country in the world. Just my opinion

[South Park]

This is the truth, it seems that many people in Venezuela believe that if Chavez was still alive things will be better but that is not true, the system was the same and the problem that the people of Venezuela are facing is systemic, they depended in a very high price for oil and for a long time this happened so it seemed as if their system worked, but they never saved a single penny of their oil profits and when the price went down their system became unstable and impossible to maintain.

Exactly. Venezuela has a flawed system. And the government hasn't done anything to remediate the situation. The Central Bank of Venezuela is going to need to copy other countries' economic models in order to keep the nation's economy afloat. Venezuela's allies (such as China and Russia) have a good economic system that has allowed them to stay ahead of the game (despite recent US sanctions). Maybe Venezuela could learn something from its allies in order to put an end to its economic crisis? There are many ways to "fix" the Venezuelan economy, limited to the government's own imagination. The Central Bank of Venezuela could simply rely on a foreign currency such as the US Dollar, Chinese Yuan, the Russian Ruble or on a decentralized cryptocurrency such as Bitcoin or Ethereum. It could also tie the Bolivar to the value of precious metals like Gold or Silver.

As long as no one does anything to save the Venezuelan economy, the country will continue to sink deeper. People will continue in poverty as chaos persists in the nation. At least, there are some people using crypto to protect themselves against the hyperinflation of the Bolivar. Expect to see more people adopting Bitcoin and Dash as a medium of exchange in the country, while the Bolivar goes down the drain. If the trend continues, there may be no one left using the Bolivar for day-to-day transactions. Once that happens, Venezuela will become the first crypto-only country in the world. Just my opinion

I think that it is obvious that the government knows this and they are simply unwilling to implement anything that could solve the crisis, so the people of Venezuela have no other option except removing the current regimen from power, but unfortunately it seems that the elections are rigged as well so it seems that this is not going to happen in a peaceful way, but the situation in Venezuela is unsustainable and sooner or later something will have to be done and since all confidence on their own currency has been lost most likely people are going to see favourably the use of a third party currency as legal tender in their country.

[bryant.coleman]

This is the truth, it seems that many people in Venezuela believe that if Chavez was still alive things will be better but that is not true, the system was the same and the problem that the people of Venezuela are facing is systemic, they depended in a very high price for oil and for a long time this happened so it seemed as if their system worked, but they never saved a single penny of their oil profits and when the price went down their system became unstable and impossible to maintain.

The high oil prices prevailed for a long time, but the Venezuelan regime never bothered to build a rainy day fund. They splurged all that money on various expenses (some of them needless). Other oil producing countries such as Russia and Norway saved a part of the oil revenues for future usage, and you can see that these countries have fared much better when compared to Venezuela.

[TitanGEL]

Look what happened if there is hyperinflation in a certain country, it is so sad that there are a lot of people who are suffering because of what happened to the fiat currency of Venezuela wherein it almost loses its value, I think I saw one of their videos before wherein how hyperinflation affect their lives. I never thought an inflation will happened like that because I saw that they are using their fiat money to make crafts and they say that the crafts have more worth than the fiat money that they use in order to build it. I'm still thinking if how the Venezuela will reverse their situation wherein, they will back to their normal lives, a lot of people migrate to some countries because of what happened to their economy. I do not think that releasing a 100,000 is good because that is too big but for sure that their government have reasons of doing it.

[BTCappu]

This is the reason why crypto was created to begin with. I understand that Venezuela could be the extreme example (along with Zimbabwe for decades now as a joke) but the reality is that whatever is going in Venezuela right now happens in almost every single nation as well, just not as extreme.

When you look at Venezuela you see a nation where you could live decently (even if not great) before all of this happened, look at 10 years ago and you see it better, and when you look at it today you see that you require a lot more cash to buy toilet paper than the paper used for itself, so it is extreme, but look at world's greatest economical powers, USA, UK, Europe, China and all the likes and you will realize that what you can buy 10 years ago is not the same today with same amount of money, that is called inflation, and while few got richer during same period, many got poorer because of it.

[magneto]

And it makes sense the Venezuelan are into bitcoin, with record breaking transactions like everyday.

Unfortunately, that's what it takes for mainstream bitcoin adoption into day to day transactions - a massive crisis.

People don't realise that a stable fiat currency is the exception rather than the rule. A lot of people seem to take the stability/value of cash or cash equivalents for granted. Treausries are deemed to carry the riskfree rate or whatnot, even though there is always a serious risk of fiat depreciation.

I wonder what Venezuela is doing with their Petro at this point. They should probably move their fiat transactions onto a blockchain anyway so that the government can more efficiently revalue and debase the currency as required 

[Vishnu.Reang]

A few days back there was this news from Venezuela that the army is involved in Bitcoin mining.

https://news.bitcoin.com/venezuela-army-mining-bitcoin-for-unblockable-income/

I don't know how successful their efforts will be, as Venezuela is not producing any mining equipment currently. They need to import their mining rigs from foreign nations such as China and South Korea (which again is going to be difficult, as sanctions and embargoes are in place). I assume that they have surplus electricity which can be directed to these mining farms, but even then capital costs can be very significant.

[Abiky]

The high oil prices prevailed for a long time, but the Venezuelan regime never bothered to build a rainy day fund. They splurged all that money on various expenses (some of them needless). Other oil producing countries such as Russia and Norway saved a part of the oil revenues for future usage, and you can see that these countries have fared much better when compared to Venezuela.

Exactly. Other countries have fared much better than Venezuela when it comes to keeping the economy afloat. The oil industry is still a thriving one in today's society where electric cars and renewable energy are starting to emerge. The South American country (Venezuela) could simply invest into renowned oil companies in order to bring value to the Bolivar currency. There are so many ways to save the Venezuelan economy, limited to the government's own imagination. But I guess that the Venezuelan government does not care about reviving the economy after all. The country will continue in a downward trend until it collapses in its entirety. With so many people fleeing Venezuela, the population will reduce to a point where the country will fade from the face of the Earth (in the worst case scenario). At least, there are some people surviving in the country via the use of cryptocurrencies like Bitcoin and Dash. The more people avoid the Bolivar, the faster its demise will be. I'd imagine crypto will be used as the main medium of exchange in the country, leaving Bolivar in the dust.

Nonetheless, the ever-declining Venezuelan economy may be good news for foreigners. Outsiders might become rich in Venezuela with US Dollars or any other valuable currency like the Euro or Sterling Pound. As far as average citizens are concerned, I believe they'll have a hard time trying to survive in the country with a hyperinflated economy. Unless someone does something to save the nation, everything will go down the drain in a blink of an eye. Just my opinion

[Jating]

A few days back there was this news from Venezuela that the army is involved in Bitcoin mining.

https://news.bitcoin.com/venezuela-army-mining-bitcoin-for-unblockable-income/

I don't know how successful their efforts will be, as Venezuela is not producing any mining equipment currently. They need to import their mining rigs from foreign nations such as China and South Korea (which again is going to be difficult, as sanctions and embargoes are in place). I assume that they have surplus electricity which can be directed to these mining farms, but even then capital costs can be very significant.

I'm thinking what if the government themselves started this whole mining rigs and farms in their country and import directly from China? I'm sure that many nations are willing to help specially against US oppression in that region.

Although building this farm entail a lot of money and capital to begin with. But we will never know if Maduro himself is willing to try this strategy to get away from sanctions and embargo from the West.

[bryant.coleman]

Nonetheless, the ever-declining Venezuelan economy may be good news for foreigners. Outsiders might become rich in Venezuela with US Dollars or any other valuable currency like the Euro or Sterling Pound. As far as average citizens are concerned, I believe they'll have a hard time trying to survive in the country with a hyperinflated economy. Unless someone does something to save the nation, everything will go down the drain in a blink of an eye. Just my opinion

They have parliamentary elections scheduled for today, which the ruling party is expected to win. The opposition politicians including Juan Guaidó are boycotting the election and this means that Maduro and his allies may get an overwhelming majority. Now this also means that the US embargoes are there to stay and the Venezuelans will continue to suffer from hyperinflation.

[tbterryboy]

Being tied to other nations and price of your resources do not make a country independent and when you are not independent you are not a nation, you're a big company that could rise or bankrupt just like any other company. Look at Saudi Arabia for example, they had a lot of oil, and they still do have a lot of oil as well, but they used their oil income to purchase so many shares and stocks from huge companies, they made their rich people really rich by letting them invest into real estates and other stuff in other nations.

If you remove every single ounce of oil in Saudi Arabia today, they are going to be still very wealthy and they will still have income coming into their nation from all over the world. Hence never trust one resource you have, use that money to invest all over the world.

[Spaffin]

Nonetheless, the ever-declining Venezuelan economy may be good news for foreigners. Outsiders might become rich in Venezuela with US Dollars or any other valuable currency like the Euro or Sterling Pound. As far as average citizens are concerned, I believe they'll have a hard time trying to survive in the country with a hyperinflated economy. Unless someone does something to save the nation, everything will go down the drain in a blink of an eye. Just my opinion

They have parliamentary elections scheduled for today, which the ruling party is expected to win. The opposition politicians including Juan Guaidó are boycotting the election and this means that Maduro and his allies may get an overwhelming majority. Now this also means that the US embargoes are there to stay and the Venezuelans will continue to suffer from hyperinflation.

In any case, there is not a drop of the democratic movement in Venezuela that could influence Maduro's decision. If the government increases the money supply, which leads to hyper inflation, then what goals is it trying to achieve by these actions? This is not the real competence of the government, which really has great opportunities for the development of its economy, in the use of the US embargo.

[Abiky]

Being tied to other nations and price of your resources do not make a country independent and when you are not independent you are not a nation, you're a big company that could rise or bankrupt just like any other company. Look at Saudi Arabia for example, they had a lot of oil, and they still do have a lot of oil as well, but they used their oil income to purchase so many shares and stocks from huge companies, they made their rich people really rich by letting them invest into real estates and other stuff in other nations.

If you remove every single ounce of oil in Saudi Arabia today, they are going to be still very wealthy and they will still have income coming into their nation from all over the world. Hence never trust one resource you have, use that money to invest all over the world.

That's certainly true, mate. The Venezuelan government should've put its money to good use by investing in other companies and assets. By now, it would've been able to sustain its economy. Unfortunately, the sole dependence on the oil industry has led towards the country's demise. US sanctions and many other undesired situations have negatively impacted the Venezuelan economy. The only way to save the economy would be to peg the Bolivar to either Gold or Bitcoin in order to help mitigate the negative effects of inflation. But that decision would be up to the Venezuelan government and the central bank itself.

Nonetheless, many people living in Venezuela are starting to rely on alternative currencies in order to survive. There's been a rise in crypto usage within the region. Both Bitcoin and DASH have experienced massive adoption by Venezuelan people. They have lost their faith in the Bolivar currency, as well as, the government. It shouldn't be long enough before the Bolivar disappears, leaving the government with no choice but to rely on Gold or Bitcoin as the new medium of exchange. Just my thoughts