Bitcoin trading in Venezuela is skyrocketing amid 14,000% inflation | Hacker News Reader

Bitcoin trading in Venezuela is skyrocketing amid 14,000% inflation

qz.com

38 pointschanfest2212 comments

The charts are using volume of transactions in Bolivar. The bolivar is being devaluated at a crazy rate, for sure the bitcoin transaction volume value IN BOLIVAR would be skyrocketing as well. This should look at the equivalent in USD or just pure number of transactions.

Yeah, this seems pretty dodgy when they're showing just pure bolivar expenditure. I think cryptocurrency could probably be a good deal for Venezuelans right now, too. It avoids being subject to poor economic decisions by their government while still also avoiding being at the mercy of an economic hegemon. The more likely case though is that they're probably primarily using USD, along with other regional currencies, far more than cryptocurrency. They're a lot easier to use, too, than cryptocurrency.

Here is the correct answer ^^^^^

If there are 100,000 transactions for 500,000,000 BOLIVAR ($1 USD on June 8th), and 100,000 transactions for 1,000,000,000 BOLIVAR ($1 USD on June 9th), then demand is unchanged, and the Bolivar is losing value.

NOTE: I used a random number for Bolivar exchange rate. That's not the real exchange rate.

The digital currency project I'm involved in also has a strong user base in Venezuela.

From what I understand, the biggest relative advancements can be made there if individuals or organizations are empowered to participate (e.g. in a decentralized system) rather than needing to satisfy requirements from large established organizations who don't see the value in participating in a small, unstable economy.

There's also a good article in the Atlantic on the causes of this crisis and why Maduro clings to power and has no way of comfortable exit like tinpot dictators of 1980s had.

https://www.theatlantic.com/international/archive/2018/05/ma...

The Venezuelan regime is still in power thanks to the help of Cuban intelligence, and armed militias and paramilitary groups that are financed by the regime and do their dirty work, like using violence to intimidate opposition.

Venezuela provided a economic lifeline for Cuba at some point, but now they can barely provide for themselves. I hope both regimes fall.

Venezuela officials can now blame rampant capitalism as the source of the country misery.

People in Venezuela are also eating dogs, cats, and pigeons.

https://www.usatoday.com/story/news/world/2016/05/18/venezue...

Basically desperate people do desperate things to survive.

FYI, pigeon dishes feature in a number of Michelin star restaurant menus.

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