In the middle of a financial disaster with inflation nearing 2,000 percent, Venezuelans are now utilizing bitcoin to pay for provisions, medical bills, even travel. Unchanged by the economic catastrophe, bitcoins gives users an option to black market valueless government currency.
As Venezuela’s legal tender loses value at a devastating rate, many citizens have started turning to the world of cryptocurrency to recover what little value remnants from their gradually more worthless bolivars. Many are converting their money into bitcoins and then using the digital capital to pay for everything from physician appointments and travels to motorcycles.
The transactions are comparatively fast for anyone with a Smartphone: Websites like LocalBitcoin and Colibit purpose as connections where Venezuelans can buy and sell bitcoins using a neighborhood bank account.
The move toward cryptocurrencies is intriguing place as the value of bitcoin has escalated to a peak of more than $17,000 this month. The digital currency introduced on a major US exchange with its first futures contract Sunday. In Venezuela it is now a means to keep families buoyant, with some Venezuelans purchasing a small fraction of one coin to put together their savings, to sum up, their savings capital.
The Way Forward
The future is that there are currently plans already on opinion to refit the Bolivar by the Venezuelan administration by their plan of removing three zeros and bring down the currency. This is now slated to happen on Aug. 4, 2018. The bang that this will have on the economy ruins to be seen as citizens persist to seek option store of value, according to a CCN newsource.
While the government works on its own tactics to liberate the economy, other sovereign sources are taking steps that they suppose would be obliged for the citizens who have been the direct sufferers of the circumstances.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]