Venezuela: Bitcoin becomes a method of essential goods purchase!


The national currency of Venezuela - Bolívar or strong bolivar - is rapidly losing value due to unprecedented hyperinflation. And whether the current official exchange rate of Venezuelan Bolivar equals 1 USD = 4,3 VEF, then in fact, on the black market the locals are willing to change dollars at the rate of more than 5,000 VEF for $ 1! And in order to "stay afloat" during the devaluation, Venezuelans have begun to rely on bitcoin when paying daily needs.


According to the local exchange rate, an amount of 100 bolivars is roughly equivalent to $ 0.02. As you know, 100 Bolivar is the note with the largest nominal, but the government decided to resign it from circulation at the beginning of December 2016. As a result, the Venezuelan economy and the monetary system has suffered chaos and decline, and the population of Venezuela was in dire need of cash for daily household necessities.


Currently, denominated 50 bolivars is the largest by nominal, which roughly corresponds to the rate of 1 cent. Thus, as an example to describe all situations one can assume that Venezuelan resident need the total amount of 200 bank notes of 50 Bolivar to buy a loaf of bread and a portion that corresponds to the sum of about 4 dollars. According to information from the head of department of Bloomberg News in Venezuela, Nathan Crookes, each Venezuelian is forced to carry wads of money directly into the pockets, purses and bags, in order to meet their basic needs of food, water, personal cleansing, etc.


But the main reason that people switch to the calculations on bitcoin, is that ... Bitcoin is a decentralized cryptocurrency, that has a number of characteristics, such as high liquidity, the ability to counterfeit the rate fluctuations only by members of the network, and what is worth noting transportability. And even if Venezuelans succeed to buy dollars on the black market, withdrawal them abroad is no longer possible due to the actions of the security forces at the customs and airports.


Since the Venezuelan bolivar loses half the cost every day, people have to look for ways to purchase and deliver the essential goods abroad, including through online transfers of BTC. With access to the Bitcoin wallets, Venezuelans and visitors, receive the opportunity to take advantage of the international trading platforms, such as Amazon. On the other hand, most of these platforms do not directly acquire cryptocurrency, therefore, there appears more and more companies in the market that act as intermediaries in the operations between the owners of BTC-wallets and trading platforms. SEO of Cryptobuyer - similar service, providing the option to purchase goods and services via cryptocurrency, Jorge Farias, calls BTC a mainstream, both in Venezuela and other countries, there is no other technology, that has a similar interest. A lot of people get into the business from other industries only due to the opportunity to become part of bitcoin community.