The turmoil in Venezuela: people rush for bitcoin arms

The turmoil in Venezuela: people rush for bitcoin arms


When the number of investment institutions bitcoin appreciation prospects, Venezuela people are crazy influx of bitcoin, but they acquire bitcoin reason more directly, it is against the domestic stall economic growth and inflation as well as high.

In the opinion of the Venezuelan people, with the continuous depreciation of the Bolivar, as well as bitcoin has really come.

According to the statistics of Venezuela bitcoin trading platform, from August 2014 to November 2016, the number of Venezuelan bitcoin users rose from 450 to 85 thousand.

Bitcoin temptation

The Venezuelan people have enough reason to start bitcoin mining business.

The British “Guardian” pointed out that the reason of the Venezuelan people use bitcoin bitcoin is very simple, not under the control of the government, so it can still influence in the devaluation of the Bolivar. The most important is that bitcoin transactions is simple, as long as there is a mobile phone, computer or online wallet service, you can store the coins.

Cheap and subsidized electricity, as well as the failure of currency, push some young entrepreneurs to set up their own business. Although people use bitcoin in Venezuela is still very little, but many users have been on the Internet by encrypting the money to buy food and commodities, some vendors even began to accept bitcoin.

Bitcoin mining operations caused dissatisfaction with the government of venezuela. In Venezuela, subsidized by the state power is very cheap, almost free, while bitcoin mining process will consume a lot of electricity.

Last November, the Venezuelan government bitcoin absenteeism were arrested. The police searched the Caracas a pair of brothers house, found more than 90 terminal.

In February this year, Surbitcoin trading platform in Venezuela’s most popular was closed, the site said it plans to withdraw Banesco cooperative bank account. However, the site has launched again after two weeks.

Accept the “the Atlantic issue” interview, the founder of Surbitcoin RodrigoSouza, mining the temptation is too large, can not stop, many people just do more secretive.

The runaway economy and high inflation

Let the Venezuelan people to turn their attention to the cause of bitcoin is very simple, it is out of control of the economy.

In July this year, IMF predicted this year in Venezuela GDP fell 12%, compared to April this year, the 7.4% forecast down again.

Former Venezuelan officials, an economist at the Harvard University in RicardoHausmann recently published an article pointed out that Venezuela in 2017 is 2013 GDP contraction of 35%, the per capita GDP decreased by 40%. He said that Venezuela’s economy shrank more than 1929-1933 years during the Great Depression of the United States is more serious, then America’s GDP fell by 28%.

Economic contraction is brought about by the shortage of food. Al Jazeera website reported in April this year, the Venezuelan government run the store entrance, with long queues of people waiting. The Venezuelan people only according to the last digit ID, in a week in the designated shopping days.

In addition, high inflation also makes people more difficult days in venezuela. IMF forecast in April of this year in 2017 and 2018, Venezuela’s inflation expectations were 720% and 2068%.

In mid July of this year, some netizens also noticed that on the black market, Venezuela’s currency as Bolivar game “World of Warcraft” in gold.

What is Venezuela: oil, oil also

Once that is, Venezuela economic take-off model, but everything is built on oil.

More than 90% of the export earnings from Venezuela crude oil industry, help the national government run, also import every kind of goods. However, with the global oil prices fell in 2014, the Venezuelan situation has plummeted.

RicardoHausmann said in the article:

“From 2012 to 2016, per capita oil exports fell by $2200, of which $1500 is due to the fall in oil prices caused by.”

The ensuing devaluation, waste money, a constitutional amendment to make this country become in jeopardy.

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