Bitcoin has emerged as a savior for lots in dire situations. The decentralized nature of Bitcoin mixed with its ease of use and secure nature makes it a perfect alternative for the ones in troubled economies or reduce off from the traditional economic system. The financial situation of Venezuela and growing adoption of Bitcoin in the country has offered itself as a case study for mainstream and fringe economists alike.
The mere mention of Bitcoin evokes combined reaction among seasoned economists. There are people who swear by the progressive cryptocurrency and others who attempt their best to put down the virtual currency’s success, even calling it a giant pyramid scheme in the process. However, the ground realities in Venezuela, as mentioned by numerous information media outlets shows Bitcoin in a positive light while conveying that the governments are not usually right.
Venezuela presently has very high rate of inflation in comparison with the others country in the world. According to reports, the country’s inflation rate is expected to hit 1600%, turning the country’s fiat currency known as Bolivar into worthless pieces of paper. The growing costs, growing poverty, and falling Bolivar have left the supermarket and pharmacy shelves devoid of important commodities and medicines respectively. In this scenario, Venezuelans are trying to go away from the diseased Bolivar to much stable Bitcoin.
The elevated adoption of Bitcoin in the Venezuela has caused a surge in cryptocurrency exchange volumes on the country’s Bitcoin systems. Moreover, there are reports of suitable Samaritans providing Bitcoin contributions to cash-strapped Venezuelans. People in the Venezuela are looking to meet their desires via ordering critical goods and drugs from worldwide on-line purchasing systems, paying with Bitcoin or gift cards purchased with Bitcoin.
Bitcoin has presented itself as a boon to those without bank accounts, as all they want is an operating internet connection and a bitcoin wallet software program installed on their smartphones or computers. Moreover, the decentralized nature of Bitcoin saves it from authorities’ terrible decisions, like printing excess currency and others. The common nature of Bitcoin gives the same possibilities to everybody. Absolutely everyone, everywhere in the world can use the cryptocurrency for his or her transactions. This very function is now keeping many of Venezuelans alive.
It is not only the case of Venezuela. The cryptocurrency has already proven its abilities in the African continent via making economic offerings available to the unbanked and underbanked. The Bitpesa provider has already provided a far more efficient approach for remittance and cross-border B2B payments than those available via mainstream banking and economic establishments. Thinking about these factors, Bitcoin deserves appreciation from people and government from all over the world. The cryptocurrency may also turn out to be the mechanism needed to solve global issues and bring peace in the world.