Venezuelans’ Confidence in Bitcoin Grows Despite the Country’s Hyperinflation


Ever since President of Venezuela, Nicolas Maduro made continuous efforts to introduce the country’s cryptocurrency Petro, some were amazed, as Venezuela was the first ever country to make such a courageous move. Unfortunately, many still remain doubtful of the token, as it lacks the transparency that cryptos are known for. To make things worse, the country is faced with hyperinflation once again, costing the standard of living of its people.

As for the reasons why many are doubtful of Petro, the majority believe that the country’s social stance along with “capital controls” seem to be negative. Moreover, many continue to argue that the government could possibly be playing around with the numbers.

According the International Monetary Fund (IMF), Venezuela’s inflation is surely to rise beyond an estimated 13% this year. The countries universities’ have also concluded that the quality of life of its citizens is gradually worsening, with as much as 87% of the population currently faced with extreme poverty.

While the government claims to have implemented programs like subsidized food for the less fortunate, the prices tied to them reflect that of the black-market dollar, which citizens do not possess. Clearly, making the situation far more worse because now, basics like bread and flour will be harder to get.

Based on the claims made by Maduro on June 20th, it appears that minimum wage will finally go up to about $1.14 monthly, but this less likely to happen as the Venezuelan currency, bolivar, continues to depreciate as we speak.

Although the current situation is alarming, LocalBitcoins pointed out that Petro’s trading volume has been experiencing an upward trend for many successive weeks. While the crypto market is always on a flux, consumers are in search of an alternative that could serve as better and profitable currency.

As for crypto-based projects, it has been revealed that Margarita Island is in the works of bringing out a crypto called PerlaCoin, hence interest in blockchain and crypto still remains for some in Venezuela.

Is Crypto Mining Acceptable in Venezuela?

One would think that with the country having its own crypto, related activities among the community will be accepted, but that unfortunately is not the case.

According to a press release by Venezuelan news, Noticiero Digital, the government will eventually place a ban on many devices needed to mine cryptos, which include the likes of computers, cards, processors, etc. This also applies to cryptocurrency mining equipment.

Ultimately, it is clear that the Venezuelan government does not comprehend the notion of decentralization, which can be problematic for their involvement in cryptos.

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