Prominent Entrepreneur and Bitcoin Advocate Naval: ‘The Killer App for Crypto is Socialism’

According to the cryptocurrency entrepreneur and investor Naval, the killer application for cryptocurrencies is socialism.

He commented in this way in a recent tweet regarding the situation that several countries are currently experiencing.

Although he did not mention any specific country, Venezuela is one of the countries that has benefited the most from virtual currencies. Citizens in the country have been embracing digital assets to survive and to avoid the economic crisis.

Venezuela was the richest country in South America since they have one of the world’s largest oil reserves. However, with socialist policies, they were not able to keep the economic development that they had until Hugo Chavez arrived at the presidency.

Through socialist policies, they promoted social justice and help those left behind by liberal and capitalist economies. In the beginning, the results were impressive, however, things changed as time passed. The government became more and more autocratic. Inflation started to grow and people started to leave the country as medicines and specific products started to lack in the most important supermarkets and pharmacies.

Now, Venezuela has hyperinflation close to 1 million percent per year. Supermarkets do not have products for people and the poverty rate has skyrocketed to 90 percent. The socialist dream was suddenly a nightmare for the population.

Several countries in the region such as Argentina, Colombia or Chile welcomed Venezuelans. These individuals are now working and sending funds back to their families that remained in the country. Some of these individuals send the funds back in Bitcoin (BTC) or in other cryptocurrencies.

Venezuelans have also started to mine virtual currencies, including Ethereum (ETH) and Bitcoin. However, the government closed these operations and seized the ASIC miners required to mine these digital assets. Mining virtual currencies were one of the ways individuals had to maintain their life quality.

A local Venezuelan commented on the matter:

“I don’t want to drag this topic a lot, but Venezuelans don’t have tools to exchange their Bolivares easily. They have to depend on the black market to get the dollars in cash or PayPal. Some might exchange using international bank accounts, but it’s minimal for the common people to access this.”

It is possible to see that the BTC volume transacted in LocalBitcoins has been growing during the last few years, skyrocketing in December. Dash has also been expanding in the country. Indeed, Venezuela is the country with the largest number of merchants accepting Dash all over the world. Even more than the United States, the United Kingdom, Germany or Australia, among others.

Now, some companies are trying to install Bitcoin ATMs in the country to allow individuals to sell their digital assets in an easier way or even purchase more to be protected against inflation.

Venezuela is currently experiencing big changes. Nicolas Maduro, Venezuela’s illegitimate president and a dictator is currently facing pressure from different countries to give the power to Juan Guaidó, the president of the National Assembly of Venezuela, who has been chosen as the president by the democratically elected parliament.

The next few weeks are going to be very intense for Venezuelans. Several countries have called Maduro to accept new democratic elections. Bitcoin and virtual currencies have been helping Venezuelans to keep their lives and make their situation a little bit better.

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