Cryptocurrencies are an alternative to hyperinflation in Venezuela
Cryptocurrencies mining and trading is the new trend among Venezuelans to cope with hyperinfllation
The mining of digital currencies and their commercialization allows Venezuelan people to get significant gains in currencies and opportunities to preserve the value of money.
The increase in production and transactions with cryptoactives are increasing amid the loss of the purchasing power of the bolivar, its continuous devaluation and hyperinflation. The national currency practically loses its function.
In a telephone communication with Efecto Cocuyo the economist Aarón Olmos says: “That makes Venezuelans try to look for something that supports the value of their work and they look for foreign currency or its equivalent, thus cryptocurrencies play a fundamental role.”
Undoubtedly, the use of cryptographic currencies in Venezuela is not new, but has been strengthened in recent years. Venezuelans began to acquire them as an investment method and later joined the market where people exchange them for foreign currency, goods and services.
The South American country is already positioned in the list of countries with the highest volume of crypto transactions in the world. According to the CoinDance website, during the week of April 13, 1,429 bitcoins were traded through LocalBitcoins. This amount is equivalent to $ 7,386,501.
L.Sáenz
Source: Efecto Cocuyo
