Bitcoin Price Doubles Every 18 Days In Venezuela
Something quite unique is happening in Venezuela right now. As the country is being plagued by a harsh hyperinflation rate, people are starting to use more and more Bitcoin and the result is that the price of the token is also hitting record highs in the country because of the hyperinflation scenario.
A Terrifying 86,857 Percent Annual Inflation In Venezuela
The inflation in Venezuela is simply insane right now. Just about a year ago, you could buy a cup of coffee with 2,300 bolívars, the local fiat currency. Now, you would have to pay around 2 million bolívars to buy that same cup of coffee. This is an inflation rate of 86,857 percent, which is both terrifying and unbelievable.
Unfortunately, it only seems like the problem will get worse over time. The International Monetary Fund (IMF) is currently projecting an inflation rate of over 1 million percent by the end of 2018. This is unparalleled in the recent history of the world and, unfortunately for Venezuela, it does not show any sign of stopping right now.
The prices are doubling every 18 days and the wide majority of the country is living in poverty standards because they have to spend astronomical amounts of money to simply live normally and buy produce like eggs, flour and bread.
Bitcoin As The Way Out?
The hyperinflation is causing a Bitcoin buying spree around the country and the price is higher each week. The trend keeps growing in rampant rates and the trade volume of Bitcoin in the country has more than doubled, reaching 17 trillion bolívars worth of BTC in this week alone.
At the time of this report, the price of Bitcoin was just under 1 billion bolívars and will probably surpass it soon. However, the Banco Central de Venezuela (the national central bank) has become an unreliable source of information for the inflation, so it can be even bigger now.
The increase in BTC trading volume in the country, however, means that the locals are currently looking for ways to store value amidst the crisis. As the hyperinflation rises, Bitcoin looks like a way out, as it only increases in value along with the inflation. However, things are very ugly right now and no one knows how they will turn out to be next year.