You were complaining because this year’s inflation couldn’t arrive at 2 percent? Well, Venezuela is known as the country with the highest inflation in the world. As of October, inflation hit 536 percent since January. The Venezuelan country (the Bolivar), loses its value every single day. That’s the reason why lots of Venezuelans are using Bitcoin and other cryptocurrencies in order to survive.
Bitcoin, the New Currency in Venezuela
If you want to buy anything at the supermarket, for sure it will be a difficult task. For a single bag of food, a bag of banknotes is necessary. Would you pay for food in such a way? It is simply better to carry your phone and send some bitcoin in a blink of an eye.
Venezuelans’ savings are also under threat. They have been since a really long time. How to store value when every single day the currency is worth less than the day before? Even the fake gold in World of Warcraft, Azeroth, is worth more than Venezuela’s currency. A country in such conditions can’t keep its path.
Nicolás Maduro, Venezuela’s president, has announced that the government will issue a digital currency named, the Petro. The currency will be backed by the different natural resources that the country owns. Among them we can find the most important: oil.
Mining Farms in Venezuela
So as to be able to save some money and store value, Venezuela’s citizens have been mining Bitcoin. The government didn’t allow it to happen and gave orders to the police to stop bitcoin mining farms. But the ‘mining farms’ that we imagine that have been closed are not even ¼ the size of the ones we all are used to see. Normal people with some savings decided to buy some mining hardware and mine some bitcoins.
At the moment, as that’s forbidden, some individuals have started to mine Ethereum. As Ether can be mined with GPU and not special hardware, the government can’t track who is mining or not.
Clearly, the situation has become extreme in the country. Paper rolls and tooth paste are luxury goods that can only be purchased at a higher price in the black market. Bitcoin and cryptocurrencies are helping this nation to break free from an oppressive government and giving the Venezuelans the possibility to save some of their earnings.