Sunday, December 8, 2019

Bitcoin Transactions in Venezuela Reaches High as Crisis Intensifies

Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

Venezuela’s crisis has reached a palpable high in years and the recent national cryptocurrency, the Petro, which was passed into law early last year has done nothing to save the situation of the country.

The Country Who Turned to Bitcoin

Venezuela’s crises reached an all time high last year, and have deteriorated into a more alarming rate this year. From one of the worst financial, economic breakdown any country has ever experienced to a dictatorship like a regime which shut its critic in government prisons; Venezuela was in a state of an implosion than it had ever had before.

The country’s official cryptocurrency suffered along too and was the most affected by the deteriorating state of the economy. The country’s Bolivar currency lost value very quickly, and President Maduro had to scramble quickly to save the situation. Cryptocurrencies have long been hailed as even capable of surviving a nuclear war, Nicolas Maduro despite his dogged stubbornness must have considered this more than necessary as well and swiftly declared an official national digital currency: the Petro. The Petro was supposed to save the economy’s imploding state and restore some balance, if anything, the situation has only worsened. Maduro’s Petro has shoved aside and was not even in contention with the fallen Bolivars.

Rather than investing in Petro, data shows that the majority of Venezuelans in economic-threatening situations and recession would put their fast depleting money in Bitcoin instead.

Following the latest intensified crisis and uprising against Maduro’s current government by the opposition leader Juan Guaido, Venezuelans are now in a feverish rush to secure more Bitcoins, as an insurance and leverage against a fast deteriorating Bolivar and seemingly fraudulent Petro. While there appears to be little to no trading of the Petro cryptocurrency, Maduro claims it is the sole means of exchange between Russia and Venezuela in its oil trades.

It is Now All or Nothing

Venezuelans are now taking to the streets in protest in agreement with Guaido’s plea for ordinary citizens to support the uprising in their own way. The military involvement spearheaded by a young Guaido has been endorsed by many rightwing governments across the world, including the United States and Brazil.

Maduro’s relatives fill official positions and may face jail or worse if he falls, he most surely would not be removed so easily. “It’s all or nothing,” says Brazil’s vice president; either Guaido is imprisoned, or Maduro is ejected. One of these must happen this time.

Bitcoin transaction volume in Venezuela on LocalBitcoins now stands at almost 40 billion bolivars as we close in on another weekend.

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