Venezuela is one of the most affected countries of the World War 2. After the WW2, the inflation rate has been on the positive curve. Venezuela tried many policies and methods to improve their economy, but nothing really worked. Until Cryptocurrency hit the market, when the first cryptocurrency was launched in the 2009, people thought it to be a facade tale, but for the Venezuelan it was a way out form the inflation.
After the introduction of the Bitcoin a decade ago, Venezuela found a ray of hope to improve their degrading economy. Today we are in the 2020. It has already been over 10 years after the first cryptocurrency surfaced in the market. Venezuela has been working with the Cryptocurrency since then. And today, the price evaluation of the Bolivar has improved by five Zeros.
The impact of the cryptocurrency in the Venezuelan economy was so huge that even the Venezuelan government decided to launch its own Cryptocurrency, Petro. This cryptocurrency is believed to be powered by the oil reservoir of the nation.
Why people prefer Bitcoin over Oliver?
Bolivar is the fiat currency of the Venezuela and it currently has an inflation rate of 3.5%. This inflation rate is making the Bolivar incapable of competing on the international platform. Venezuelans are aware of the fact that the inflation of their currency will restrict Bolivar to compete in the market. This had made them trust the Cryptocurrency more than Bolivar.
The other reason for the Venezuelan to invest in the Cryptocurrency on a large scale is because they do not have any foreign account where they can keep their money. Hence, the only possible option for them is to keep all their money in the form Bitcoin or any other Cryptocurrencies.
In an interview with a Venezuelan lawyer, Juan, we came to know the hard truth of the Venezuela economy. According to Juan, the average paycheck a government employee gets is around $5. It is due to this reason that many of the Venezuelan thinks that investing in the bitcoins and other cryptocurrencies is far safer than keeping their money in Bolivar.
Venezuelans converts their Bitcoins into Bolivar
To survive, everybody needs the necessary utilities. The problem with the cryptocurrencies is that its market is very small as compared to the traditional fiat currency. This restricts the traders to buy their necessities easily. But in Venezuela, you can certainly survive by earning Cryptocurrencies.
Venezuela has been super active with the Cryptocurrency trade. This had made a huge market based on the cryptocurrency. You can even say that more than 60% of the Venezuelans are associated with the cryptocurrency in one way another. So, you just need to find the right traders and sellers that are willing to trade with you in Cryptocurrencies.
There are many platforms that are used by the Venezuelan for Crypto exchanges. One of the most popular platforms that Venezuela uses is Bitcoin billionaire find the support here. This platform not only helps them with the Crypto exchanges, but it also helps them with the Crypto trade.
NGOs use Bitcoin for the charitable work
The Venezuelan NGOs and charities were also able to use the borderless nature of the Cryptocurrency for a good cause. There are now many non-profitable charities in Venezuela that help the people by offering free education and food to the people who cannot afford it. These institutions are supported by Cryptocurrency donations only. And within these past few years, they were able to raise enough funds to feed thousands of hungry Venezuelans on a weekly basis.
There is no doubt that during all the debates and confusion regarding Cryptocurrency, Venezuela was able to measure the full potential of the Cryptocurrency. Venezuela is proving that the Cryptocurrency truly have the potential to replace the fiat currency if it is used in an efficient way.