The Bolivarian Republic of Venezuela is home to one of the worst hyperinflation crisis in the world ever. Inflation has been projected to reach as high as 13,000% this year, as the situation continues to worsen for the Venezuelan public. The Venezuelan Bolivar continues to plunge, and as purchasing power of their seemingly doomed fiat currency reduces, the government continue to issue more currency. fortunately in this digital age, there is a solution… and that solution is Bitcoin adoption. The Venezuelan citizens are turning to the digital currency as an alternative for their own fiat currency. Bitcoin adoption is now at a record high in Venezuela as confidence continues to fall in the Venezuelan Bolivar.
LocalBitcoins trading volume for the week of 14 April 2018 was: 2,789,991,957,138 Venezuelan Bolívares. The previous week was well below two trillion VEF, at 1,744,669,576,098 Venezuelan Bolívares. Volumes were mostly below 1 trillion VEF before that.
While this is terrible news for Venezuela we can see what is probably going to be one of the first ever real world use cases for the true purpose of Bitcoin, Venezuelans are opting to use the digital currency and many are excited about the opportunity Bitcoin is providing them. Because of bitcoin citizens of Venezuela are able to continue living in their home country.
While this may not have had a huge impact on the overall price of Bitcoin we are seeing a shift towards more people choosing to use Bitcoin as oppose to fiat currency and potentially Bitcoin is started to gain a lot more trust as a currency.
In an interview with bitGuru, Venezuelan citizen, Brayam explained how many people have fled the country and use bitcoin as a means of transferring money back to their families in Venezuela as oppose to more traditional methods.
Many of my friends and family have opted to using Bitcoin, large numbers of people are fleeing the country amid the ongoing chaos, and Bitcoin is very much the currency of choice when sending money to their friends and family. Bitcoin has given us all a chance to continue our lives here and if it was not for the digital currency we would be in a far worse situation.
Venezuela is not the only country to be suffering from hyperinflation and it seems to be a growing issue in global economics. Many countries are suffering with high inflation rates… Argentina, South Sudan, Suriname to name a few. Fortunately there is now a solution, and this just once again demonstrates that when you put a central authority in charge of the financial system it does not always work. Bitcoin adoption in developing countries continues to grow and it is only a matter of time before we see mass adoption for digital currencies alike.