Venezuela is currently suffering from hyperinflation, which may force the country to shift to Bitcoin. The move would come after months of excessive purchasing and mining, and could be the start of other countries doing the same.
In order to deal with ever-growing problem with the hyperinflation, the country of Venezuela may adopt a new currency: The Bitcoin.
Bitcoin has been the subject of a massive amount of mining and purchasing over the last few months, leading to a number of rumors regarding the country’s desire to incorporate it into their financial structure.
Venezuela is more than a week behind on a substantial bond interest payment. At present, it doesn’t have the money to address it or manage the economy. A simple lunch can now cost up to 200,000 Bolivars ($8-$10) prompting people to resort to using Bitcoin or money wires of other foreign currency. Bitcoin is appealing because it’s independent of the black market and tied to a fixed exchange platform, making it difficult to exploit.
In August, Venezuela was listed as the top country with a failing currency ahead of South Sudan and Suriname, with all ten countries listed expected to turn to Bitcoin or other cryptocurrencies in the near future.
Top ten country with a falling currency
- Venezuela 741.00 %
- South Sudan 79.0 %
- Suriname 55.0 %
- Argentina 41.0 %
- Syria 37.0 %
- Sudan 31.9 %
- Ethiopia 23.4 %
- Malawi 21.4 %
- Burundi 18. 0%
- Eritrea 17. 0%
The “bitcoinization” of Venezuela hasn’t happened, despite what many would like to say, so we’ll have to wait to see what actually becomes of the situation. If it does completely shift, however, it could be used as another selling point to get people to adopt the biggest crypto out there.
Rescources: https://futurism.com/this-latin-american-country-could-adopt-bitcoin-as-an-official-currency/