How to destroy the economy of a country by printing money
Money is nothing more than a relationship between two things. One has power to buy it and the other has power to sell it. The power acquired by money depends on the work of each individual, his needs are what define how much money he needs to survive. If you are not able to spend your capital to generate more wealth, then little by little the available money will not serve in this world, except to live under stress.
Venezuelan currency:
The Venezuelan #economy is in a state of disarray. Venezuela has one of the highest inflation rates in the world, with food prices rising at an alarming rate and blackouts affecting millions of people. The government response? Print more money! That has been their policy for at least the last 8 years leading us to disaster.
The problem is really that they are printing too much #money, the currency is not backed by anything real. In other words, it has no value outside of being printed on paper and put into circulation as part of an economic scheme to help keep your economy afloat (and keep people from realizing how bad things are).
So basically what we're talking about here are pieces of paper that have no intrinsic value, but still cost us time and money because someone in politics decided that they would make them worth something instead...
Inflation in Venezuela 2001-2010
Inflation in #Venezuela according to data from the International Monetary Fund (IFM)
| 2001 | 2002 | 2003 | 2004 | 2005 | 2006 |
| 26.3% | 9.7% | 6.9% | 11.3% | 11.2% | 8.1% |
Inflation in Venezuela 2011-2017.
The inflation rate in Venezuela reached 741% in 2016 and 1,370% in 2017. The next year it peaked at 2,880%. In 2018, it hit 10,000%, then 100,000%.
Migration.
In 2019, we already saw some 5-6 million Venezuelans forced to flee the country due to hyperinflation, and this number is expected to increase dramatically over time due to poor macroeconomic policies.
Cryptocurrencies and Venezuela.
Cryptocurrencies have played an important role in Venezuela to solve the crisis a bit. At one point in 2018, the CEO of Dash said in an interview in Puerto Rico that 70% of the traffic of this cryptocurrency was made from Venezuela.
So much was the interest of Venezuelans in cryptos pushed by the crisis that today we are one of the countries that holds Bitcoin the most, it is an open secret that the government is mining Bitcoin.
At the end, the government gave in to its own failure and has dollarized the country and even at the time had a platform where it received remittances from Venezuelans who send money to their relatives in the country where only cryptos such as #Bitcoin and #Dash were used.
Decentralized social networks were, are and will be a great support for us Venezuelans, many people in my country live from Hive, well I think most of them know that here on this wonderful platform.
Money Art.
We Venezuelans have a characteristic that is to transform a tragedy into something fun, music and #art. You may or may not know it, but the photos that I show below are part of what I am telling you about.
The imagination of the human being has no limits, our currency thanks to hyperinflation was reduced to a raw material to make art. After the government since 2007 made 3 currency reconversions and have removed 14 zeros from the Bolivar (0.00000000000001) yes 1 satoshi had more value than the Bolivar. Crazy or not!
People began to do this type of art, where paintings are made on bills, also ladies' wallets, animal figures, etc. Enjoy some of them.
@ElGuaroDigital