Bitcoin in Venezuela Hides When Crisis Strikes

Bitcoin in Venezuela

For the past 3 years, there were a lot of demonstrations and rallies over Venezuela country due to economic crisis is getting worse more and more. For the moment also, Bitcoin has been used by most countries to survive.

The government falls into collision as their foreign reserves down into Ten Billion Dollars in Venezuela and Bitcoin would be the frontier on situation like this. Last 2014, it's poverty rate is only Forty-six percent and it doubled to Eighty-Two percent rate after 3 years.

The nation's most common Bitcoin exchange service - Surbitcoin was closed and forced to stop their operation on early of February. The stoppage causing the spike of Localbitcoins in Bitcoin trading.

Bitcoin in Venezuela

The perception is that people should embrace or adopt digital currency in there because of the fact that they have transactions in the black market to purchase goods even on the midst of hyperflation.

The happening turns out to be getting an official exchange rate of nine point nine-hundred Bolivars over dollar where the rate in the black market rate of exchange is four thousand VEF per USD which Bolivars rate for Bitcoin is included.

There are instances that people tend to sell the countries coin's as scrap metal or junk metals because it has a better price than the rate of the money itself.

According to a native named Randy Brito, "People in our country are now just have to meals at most per day with a very few calories in it". There are individuals who are using Bitcoins for goods and medicines but they chose not to because the government is prohibiting them to use it and making them go to jail.

Bitcoin in Venezuela

That's actually one of the reason why most of the people are hesitant to learn how to use Bitcoin because the demand is less.

Brito added that there are a lot of corrupt police around the country who confiscated Bitcoin mining hardware to use it in mining Bitcoins of their own or putting it to the point where they are selling it to the black markets. Some also says that they found some authorities trading the equipment in the black market.

The number of mining farm during first months of 2017 was eleven thousand and on the same time the raid on Caracas was the same number of Bitcoin mining farm. According to reports, Bonesco, a baking partner of Surbitcoin closed their account of the firm.

This is just normal though for business over the world like Europe and United States.

Bitcoin in Venezuela

There are lot of comments on forums that they are comparing Venezuela to their countries. Some says they need Bitcoin for traveling on the nearest cities, and others says Bitcoin is not prohibited in their country and might put them into jail.

Mr. Brito who is now living in Spain says that if only those influential individual knew about Bitcoin, they could have educate others on using it. They will not be leaving the country and in fact use Bitcoin or any other digital currency for exchanges.