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The price of Bitcoin is continuing to skyrocket in Venezuela due to the country's crumbling economy and infrastructure.
To say that there's a humanitarian crises going on in venVenezu is a massive understatement. The social policies of Nicolas Maduro, carrying on the groundwork laid out by Hugo Chavez, has left the country's economy is shambles. Many people turned to Bitcoin mining in order to generate funds to buy the most basic of essentials: food, medical supplies, and so on. The country's collapsing economy is easily seen by the fact that Bitcoin price continues to surge as the Bolivar spirals ever downwards.
Venezuela in Shambles:
The social regime of Nicolas Maduro has left the country in ruins. Political dissent is stiflied, freedom of the press is near non-existant, and basic food items cannot be found. People are literally starving, as is evident from desperate people attacking and eating animals found in Zoos.
It's sad to say, but there is a chart to quantify the ongoing economic misery. Bloomberg created the Bloomberg cafe Con Leche Index that charts the price of a cup of Coffee. One year ago, a cup cost 2,300 bolivers. Today, that same cup of coffee costsan eye watering 2 million bolivars. That's an inflation rate of 86,857%.!
Bitcoin offering some hope:
As per Bolivar is essential worthless, many people turned to Bitcoin as a store of value. A lot of people began mining for Bitcoin in order to keep their families alive. Naturally, the govt of Venezuela began Cracking down. On such mining. There were even reports that police and govt officials would confiscate Bitcoin mining equipment and use it for their own gain.
The ongoing economic misery shows how much the populace has turned away from fiat to Cryptocurrencies. The sand for Bitcoin is staggering. The week of January 13th, 2018, saw a total trading volume of 244 Bitcoin's. This amount increased to 363 BtcoBitcofornth week of march 3rd,529 Bitcoin's for the week of June 2nd, and 621 Bitcoin's for the week of auAugu4th.
The notable feature is the cost of buying Bitcoin's with bolivers. A BTC cost just over 486million Bolivars on April 18th. That cost shot up to 587 million bolivers on July 18th, 845 million bolivars on July 26tgh, and 981 million bolivars on August 6tg, one year ago, 1 BTC could be bought for 34,000 bolivars. The most current price is 894 million bolivars.
With such stageerist price increase and trading volume, you can see firsthand how desperate the people of Venezuela are. Almost 90% of the country's population lives in poverty, and almost three-fouths of the populace lost 20npounds of weight inn2017 duento a lack of access to fodd. It's frightening to think that being lucky enough to buy some Bitcoin's a year ago and then holding them untill today could mean the difference between living and gying in the ravaged south American nation.
Thanks Regards,
Vinay Kumar.
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