Venezuela bitcoin trading volume rose to 1 million 300 thousand bitcoin is more trustworthy than legal tender
In June 15th, Bloomberg article pointed out that in the past week, Venezuela’s bitcoin trading volume rose to 1 million 300 thousand. In the country, a bitcoin security debate seems to become more and more fierce.
In many places, people skeptical of digital currency, because of possible market volatility, legal problems, or utility concerns. However, in Venezuela, no one cares. Compared with the devaluation of the Bolivar, bitcoin price volatility and even can be neglected. In recent months, bitcoin trading volume soared, last week, bitcoin prices hit a record high. The Coin.dance chart shows:
The reason why this happens, because of their own government issued currency has been a victim of inflation and other variables. JamieRedman wrote on the bitcoin.com website,
“There are a lot of reports, in Venezuela, people turn to bitcoin, to hedge the economic failure. The Venezuelan people have been using bitcoin, because their currencies have depreciated Bolivar (Bolivar), and the use of the money people are suffering from more than 1800 percentage points of inflation.”
For example, in a recent article in the financial times, describes the process of the mother to buy food for the family. It takes her 10 thousand Bolivar enough to buy a package of food provided by the government, which is equivalent to $2. With such a bad economic performance and the devaluation of the national currency, the problem is that it may cause of political corruption. This may explain why Venezuelans are rapidly adopting bitcoin.
For Bolivar, the British “Financial Times” article said, “commodity market price and the real price is such a big gap, and the gap between the official and the black market exchange rate of the dollar in Venezuela is widening, so in the state-owned project, the possibility of arbitrage, profiteering and corruption is very high.”
An article about why people choose to use Venezuela bitcoin currency instead of Bolivar economic calendar article wrote, “although volatility is very high, but people think bitcoin than Venezuela (Venezuela Bolivar Bolivar) more trustworthy. Since two years ago, oil prices plummeted, Venezuela’s Bolivar has been facing devaluation.”