Hyperinflation is the main reason why Venezuelans are turning to Bitcoin

Venezuela is currently the country with the highest inflation rate in the world. Since 2012 the Venezuelan Bolivar has lost 99.4% of its value; trading for about one-thirtieth of a penny on the black market.

The socialist nation experienced a swift fall in oil prices which severely disrupted the entire economy. Necessities are scare and basic health care is lacking. Many people are having to subsist on a monthly government stipend equivalent to about $9.

~ Related article: http://reason.com/archives/2016/11/28/the-secret-dangerous-world-of ~

Why are cryptocurrencies so successful in Venezuela?

You don’t need to have a physical bank account to send and receive Bitcoin. All you need is an Internet connection which most Venezuelans have in the form of a mobile phone.

Some companies in Venezuela are even exclusively accepting payment in Bitcoin!

Humanitarians can donate Bitcoin to those in need, who can then use Bitcoin to buy Amazon gift cards or shop on e-commerce sites like https://purse.io and purchase goods through the online retailer and receive them via courier.

Another perk is that the government cant control it and there is no central bank involved.

Venezuelans are turning the free electricity afforded to them by the government into profits mining bitcoin and altcoins.

A case study for the capabilities of cryptocurrencies

As Bitcoin becomes accepted and embraced by more countries, the taboo will lift and those in impoverished nations can have access to a more stable form of currency.

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