• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Sensei Inu Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Fed Holds Interest Rates Steady, Bitcoin Awaits Trend Reversal Above $27,000
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Fed Holds Interest Rates Steady, Bitcoin Awaits Trend Reversal Above $27,000
Sensei Inu Logo

Hyperinflation Fires Up Bitcoin Adoption in Venezuela

Yashu Gola by Yashu Gola
8 years ago
in Uncategorized
Reading Time: 3 mins read

The ongoing hyperinflation in Venezuelan markets is reportedly causing an increase in Bitcoin adoption, according to the Panam Post.

The online media outlet has collected evidences from a nonprofit digital currency educationalist, Bitcoin Venezuela. Their report demonstrates a drastic surge in Bitcoin usage — almost 50% within one week — in the wake of government’s stringent controls over the foreign exchange markets.

The Backdrop

Back in February 2003, the Venezuelan Government — led by the late former President Hugo Chavez — introduced a three-tier exchange rate policy in order to prevent capital flight. The decision however backfired, for then came a series of currency devaluations that ended up disrupting the nation’s economical growth. In 2010, Venezuela suffered one of the year’s highest inflation.

Hyperinflation Fires Up Bitcoin Adoption in Venezuela

However in February 2015, the country’s in-term finance minister Rodolfo Marco Torres announced to relax currency controls. His new amendment allowed free markets to directly exchange local currency for dollars. It however exempted most currencies from passing through the new exchange, thereby indicating to maintain the aforementioned three-tier system.

The finance minister said that it would continue to evaluate 6.3 Bs as the primary dollar rate for imports. Economists however believed that the exchange rate was heavily overvalued, a thing that was further influencing distortions in the economy. It was meanwhile helping the government in easing its budget deficit but, on the other hand, was inflating the values of import goods.

However now, the socialist policies have created an indisputable mayhem in the Venezuelan markets. The government’s decision to completely divorce the supple-demand factors has made Bolivar as valuable as a toilet-paper, quotes JD Tuccile, Managing Director of Reason.com. This has further driven local businesses to accepting dollars for goods and products, sidelining their own devaluated national currency. Bloomberg further notes:

“The stunning collapse of Venezuela’s bolivar in black market trading this month — it fell to as low as 423 bolivars per dollar from 279 at the start of the month — has left Venezuelans scratching their heads,  with many wondering why it has sunk below the value of gold and hard currency the central bank has to back it.”

Enters Bitcoin to the Rescue

Amid the economical mayhem, Venezuelans are looking to utilize every last resort that could help them escape the currency collapse. Bitcoin, a decentralized and volatile digital currency, seems to be one among such options.

As Panam Post reports, the digital currency is indeed a hot-topic among the internet warriors, with the concerned groups adding more members at the end of each economically frustrating day. An anonymous Bitcoin user, who also represents one of the Venezuela’s Bitcoin advocacy groups, confirmed the reports and said:

“We are offering people the the chance to buy bitcoins online and thus escape the ever-increasing devaluation of the national currency. We recognize that Bitcoin is volatile, but the price never fluctuates at the same rate as the devaluation of the Bolívar, which lost 60 percent of its value in one month.”

“The SurBitcoin exchange is already the second largest in transaction volume in Latin America after Brazil,” he added. “The growth is evident.”

Introducing Bitcoin in-between Venezuela’s economic slowdown certainly helps people to easily exchange Bolivars for Dollars. According to CoinMap.org, there is also an increase in the number of small and medium businesses that have already started accepting digital currency payments in Venezuela.

Tags: bitcoinBitcoin adoption VenezuelaBitcoin regulation VenezuelaBitcoin VenezuelaBolivar BitcoinBolivar fallbolivar rateBolivar USDNewsVenezuela BolivarVenezuela economy
Tweet123Share196ShareSend
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

Wall Street Memes Enters Last Day of Presale Before Tier 1 Exchange Listing – Could This Be the Next Big Meme Coin?

Wall Street Memes Enters Last Day of Presale Before Tier 1 Exchange Listing – Could This Be the Next Big Meme Coin?

6 hours ago
Spot

What The Drop In Spot And Derivatives Volumes Means For The Price Of Bitcoin

7 hours ago
Base

Explosive 6-Week Growth Sees Base Hit New Milestone

8 hours ago
5 New Meme Coins to Watch: Wall Street Memes Could 10x on IEO, Meme Kombat Raises $50k

5 New Meme Coins to Watch: Wall Street Memes Could 10x on IEO, Meme Kombat Raises $50k

13 hours ago
Bitwise Ethereum ETF

Bitwise Withdraws Application, A Big Blow To Ethereum ETFs?

1 day ago
Unleash the Power of Crypto Cloud Mining: TopHash

Unleash the Power of Crypto Cloud Mining: TopHash

1 day ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Press Releases

  • Ibiza NXT 2023 – Heading toward a purpose-driven Web3...

    4 hours ago
  • The Financial Investment Expo Bangkok, Thailand

    4 hours ago
  • XRP Ledger Gets Massive Update, $XRP Pinned Below $0.55 As...

    6 hours ago
  • Recent BNB Updates: Investors Flock to Borroe.Finance and...

    8 hours ago
  • Bitcoin Metrics Show Long-Term Holders Refusing To Sell...

    9 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Win 8.88 BTC
  • Play Casino Games
  • Play Finance

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.