Venezuela: An increasingly solid crypto nation.
Hello everybody...
Did you know that the European continent has reached a historical milestone in the cryptocurrency market? During the period between July 2020 and June 2021, more than one trillion dollars in cryptocurrency transactions have been made, representing 25% of the global market, in addition to billions more in institutional investments. And the regions of Central, Northern, and Western Europe have become the most active place in the world in the field of cryptocurrencies.
All this is possible thanks to the ease of investment in the crypto sector, as there is no need for intermediaries and everyone has access to it, so it is easier to reach every corner of the European continent and see how the crypto market in CNWE is growing at a very fast pace.
But now we have to analyze the situation that is happening today in Venezuela since the currency reconversion, the worsening crisis, the economic decline, and the lack of support from the banking platforms, have made hundreds of thousands of people prefer to make transactions in crypto before making them with bolivars or dollars.
The issue of reconversion is a very controversial topic, since 6 zeros are being removed again from the Venezuelan currency, previously in 2018 5 zeros had been removed and further back in 2009 3 zeros had also been removed, in total 14 zeros have been removed from the Venezuelan currency. If we calculate the value of a dollar at the current price without removing the 14 zeros, it would be something more or less like this: $1= 400,467,830,000,000,000,000,000,000,000 BS. An amount that would make anyone a billionaire for life if it were in dollars, euros, or also in won, but as it is in bolivares that is not even enough for a coffee in a bakery.
Because of the mega economic disaster that has been caused and the hyper mega devaluation, the government makes plans from time to time to subtract zeros from the currency to avoid international ridicule or to look like a strong economy, but as it happened just 3 years ago with a reconversion of 5 zeros less, I think that this reconversion will not have any effect on the economy and rather it will make everything continue to get worse. That is why many really smart people have chosen to adopt cryptocurrencies and thus save themselves from this horrible and disastrous inflation, country hundreds of thousands of professionals prefer to be paid for their jobs in Tether or BTC, also traders regularly use BTC, LTC, ETH, EOS, DOGE and other cryptocurrencies.
But besides the mega uncontrolled inflation in the country, another reason to resort to cryptocurrencies is that they are stronger than any banking system, example 2 weeks ago in Venezuela there was supposedly a terrorist attack against the banking platforms of the largest bank in the country, leaving more than millions of people without access to their monetary funds and with the anguish of not even getting an answer, and the truth is that this lasted about 5 days.
Of course, although the government qualifies this as a terrorist attack, I would say that they were not prepared for so many new users and collapsed the servers, since 4 months ago it was very easy to open an account in the Bance de Venezuela, through an app without even going to the bank, this was done to prevent people from crowding the banks and avoiding possible contagions. And since it was so easy to create an account in the bank with the highest profits in the country, imagine that every week 500K or 1 million people open an account in a bank that has had the same servers for 10 years, because everything collapsed and there were many failures. Well, this situation of not knowing where the money is and not having access to the bank made that many people, after regaining access, massively ran to cryptocurrencies.
And looking at the current scenario, this massive adoption is far from over, even more, when cryptocurrencies have become the source of income for many people, so Venezuela is entering a real digital era but not driven by its devalued and a weakened currency, but rather by cryptocurrencies that today are becoming an important part of the daily economy thus avoiding many problems and complications. But I would not be surprised if after this reconversion Venezuela becomes more relevant worldwide concerning transactions with cryptocurrencies, and even more progress in adoption.
-Fabian98-
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It is a nation with a whole parallel economical system that somehow works better than the official one. I'm pretty happy to see so many Venezuelans prospering here. That's the reason why whenever I see a quality Venezuelan post I upvote it with pleasure.
Thanks for the comment, and it is true that there are thousands of Venezuelans who struggle every day and stay afloat thanks to cryptocurrencies.
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Are there businesses promoting, exchanging and/or openly accepting HIVE(or other cryptos) in Venezuela?
Because I would find it fascinating if Venezuelan businesses were doing so in a economic revolution that could seed deep historical ramifications around the World.
Like the French Revolution changed history by angry people taking their political destination into their own hands and trying(5 times) to create a new republic.
The current economic adversity in Venezuela could be an environment where people just slowly abandon their official economy that is not working well in favor of a parallel decentralized and more stable one. And yes, I find cryptos more stable than fiat currency because there is no government authority deciding things like how much money is circulating and therefore making the whole economical system dependent on their government's reputation in foreign relations.
I would love to see a picture of a Venezuelan small market with a "aquí aceptamos HIVE" poster in front of it if this trend of people taking their economic destiny in their own hands continue.
I only know one business that accept Hive in venezuela, i dont remeber the name.
in Venezuela the Dollar is still the most adopted currency. Crypto is being adopted? YES,like another way of income, but just a few business accept crypto, depends on the state/city.
Tbh, it isn't allowed to use binance, but people still used haha, hence, if you are scammed or stolen, you can't do too much about it.
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Don't believe everything you read in the papers.
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How so? What's really going on over there?How so? What's really going on over there?
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If you do an analysis of how the holdings are distributed, you'd see that are not spread out to every corner of Europe. There are a few major cities that hold the majority of it.
The reason is lack of proper internet access in remote areas and lack of understanding (language barriers included as well as basic knowledge). My country for example is known to host a lot of tech freelancers, who are holding crypto for sure but if you do a research of how much is that in % compared to the total population, you'd be surprised.
Compared to other countries where crypto is banned, Europe is still in a good position, but we're far from mass adoption.
So I guess it's safe to say that when something is not forbidden, people think it's available, but reality says otherwise as a lot is needed for the masses to participate. This is a process takes a lot of time.
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