Bitcoin (BTC) Transactions to Make a Recovery in Venezuela As Power Returns After Blackout
You have probably heard about how bad the crisis in Venezuela is. Recently, most of the country has faced power outages, as there is a national electricity blackout going on and it is lasting for six days. Now, the capital already has intermittent power, but some neighborhoods are still in the dark.
The situation, as you can see, is not pretty, as the government is being “disputed” since the current president Nicolas Maduro (which is recognized by some countries) and the interim president Juan Guaidó (which is recognized by some other countries) are still trying to topple each other and the hyperinflation that ravages the economy of the country is still happening.
Bitcoin Usage Goes Down As the Country Goes Dark
But now, let’s talk about Bitcoin. Some analysts are trying to understand why Bitcoin usage has gone down in Venezuela recently, but the right answer is the most obvious one: people are lacking the electricity to use Bitcoin.
We all know that Bitcoin can be used without internet and even without electricity with the right supplies and tech, but the people from Venezuela are obviously lacking them right now, so they need electricity and internet or they will be cut off from the Bitcoin network.
This can be explained by the number of transactions, which was around 370,000 daily and dropped to only 212,000 suddenly. However, after the initial shock, people have found solutions and started using Bitcoin again. Now, people have batteries and the internet in some places, so transactions are around 295,000 daily.
The data from after the outage is completely over will be the one that will define whether this theory is correct, as Bitcoin would return to its normal levels then.
Bitcoin Is Mainstream In Venezuela
Despite all the problems in the country, or maybe because of them, Venezuela is the poster boy country for Bitcoin. The president even talked about Bitcoin on national television several times and created a national cryptocurrency. Bitcoin is not only well-known in Venezuela, but it is also mainstream in usage. This is big.
This acceptance, however, is not because people want to use Bitcoin. They kind of need to. The fiat of the country has faced a severe collapse and you basically have to use it for some situations like sending money abroad or you simply would not have a better option.
Future data will show why Bitcon is not being used so much right now, but we would bet on the lack of electricity. It makes sense. A currency that is so native of the digital world could only be used with proper access to it.