Inflation in Venezuela has reached alarming levels in the last months. According to some reports, Venezuela could have an inflation of 10,000,000 per cent this year. The country has also been embracing different virtual currencies. Because of this economic situation, Bitcoin trading volumes have also skyrocketed.
Venezuela Economic Problems Increase Bitcoin Demand
It is not possible to have a clear understanding of Bitcoin demand in Venezuela taking into account Bolivar volumes. The local currency fluctuates hour after hour, which is not good for setting parameters.
However, in terms of BTC, the demand has surged, according to Coin Dance. At the beginning of the year, 244 Bitcoins were traded per week. However, last week, Bitcoin trading volumes skyrocketed to 1090 BTC. The highest level ever recorded.
Bitcoin and cryptocurrencies are helping individuals in the country to survive. Other developed nations think about Bitcoin as a speculative asset. Nonetheless, Venezuelans do not have a better choice than using Bitcoin to have a better life.
When Bitcoin was not so popular, users could mine it with the required hardware. However, once the craziness for cryptocurrencies started to grow the government took action. Venezuelan authorities decided to confiscate all cryptocurrency mining hardware. Already, Bitcoin miners find it difficult to process their operations. This is why they moved to Ethereum mining with GPUs.
Although it was easier for individuals to mine Ethereum, the government imposed a ban on GPU imports. It’s becoming increasingly difficult to mine cryptocurrencies in the country.
Venezuelans are also very attached to Dash. This virtual currency has different features including the possibility to perform a transaction in just a few seconds. This feature is known as InstantSend and it helps citizens of Venezuela to make daily purchases.
According to Discover Dash, Venezuela has more merchants accepting this virtual currency than the US, Australia, Austria, Canada, Colombia, Germany and the UK together. Venezuela has 2030 places accepting Dash. The UK 67, Germany 142, Colombia 54, Canada 139, Austria 102, Australia 107, and the US 460.
From November 5, individuals in the country will be able to purchase the Petro. This is a national cryptocurrency backed by natural reserves from the country. Its value is backed by oil, diamonds and gold, among other things. The Venezuelan government decided to create this virtual currency to avoid international sanctions.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.