Venezuela, crises and cryptocurrencies
The last weeks I have noticed that some articles have been written about the current situation of the country, the repercussion of cryptocurrencies and Blockchain technology in the economy of the nation. We have also witnessed initiatives that are born from this platform with the idea of helping some Venezuelans in the midst of a situation that is becoming increasingly difficult.
Cryptocurrencies since its launch in 2009 (Bitcoin) have had an impact on the world economy, it is a currency that bases its security on cryptography, in a system called block chain and that is backed by the trust of people or companies. holders of any of the more than one thousand cryptocurrencies existing in the market until now.
Venezuela at the forefront
According to the data, Venezuela has become the first Latin American country in operations with bitcoin, surpassed worldwide by Russia alone. The trend that has been maintained for the last few months places the South American country at the forefront in terms of bitcoin transactions. But what makes an economically depressed country, with hyperinflation, the one that carries out the most operations of this type?
Venezuela has remained in recent months as the second country in bitcoin exchange globally, through the Localbitcoin platform. The hyperinflation, the economic crisis and the political instability have pushed the Venezuelans to seek refuge in the cryptocurrencies, to preserve the value of their income.
Only this month operations were carried out for little more than 8,000 bictcoin, Venezuela together with Colombia made more than 80% of the operations with bitcoin registered in Latin America. Apparently the existing crisis in the country has become the engine that drives this high rate of operations with cryptocurrencies, people in Venezuela found in cryptocurrencies a way to protect what they now have, to do business, to market and it is even safer and more reliable alternative for those who have emigrated from sending aid to relatives who still remain in Venezuelan territory.
The case of Venezuela is paradigmatic. Between Venezuela and Colombia they traded 11,208 BTC through LocalBitcoins during the month of January 2019, concentrating more than 80% of the volume of trade in the region. Venezuela traded in the last weeks 8,319 bitcoins, 1.64% more than the previous month, when it reached the milestone of 8,182 BTC in the month.
Another important fact that speaks of the "escape valve" in which cryptocurrencies have become, is that Venezuela became the first country to visit online to the localbitcoin page, which gives us an idea of the importance it has and is taking cryptocurrencies for Venezuelans. The Venezuelan is desperately looking for alternatives to fight the crisis and apparently one of the most reliable and effective exchange with cryptocurrencies.
The report indicates that in the first 31 days of the year the page received 4,823,000 visits. Of that total, 20% came from Venezuela, that is, some 964,600, which places the country in the first place in the ranking among the nations that most concur to the website. For the study, the startup relied on IP (Internet Protocol) addresses, which serve to determine, geographically, the origin of visitors.
They are followed by Venezuela in the ranking: the United States with 8.54%, the United Kingdom with 5.94%, Russia with 3.60% and India with 3%. In relation to the type of visits the page receives, not only from Venezuela, but from all users, it is indicated that on average a person spends 14 minutes to check LocalBitcoins, which generates an average of 11.6 visited pages. The rebound rate stands at 34.42%.
Studies have shown that in countries that present problems with their economy, where the government establishes strict exchange controls, they are conducive to the increase in transactions of this type. In my opinion, this reinforces the confidence in this monetary system, its security and the decentralized nature of it.
As of the date of this publication in Venezuela, there are more than 180 establishments that accept payment with some type of existing cryptocurrency, a figure that will surely increase with time. The level of transactions translates into the confidence that this system generates in the population, since they feel they are free to operate without risks and without the intermediation of the government.
This same encouraging scenario for this monetary system has caused the government to try to implement controls in terms of tenure or remittances that are sent from abroad, measures that try to cut the "oxygen" that this aid represents for the families of migrants trying to drown in this way the hope of many in this country.
The ruling establishes commissions that range from 0.25 euros as the minimum rate per transaction, to 15% of the funds transferred in cryptoactives. In addition, it limits the sending of remittances to a monthly amount equivalent to 10 petros (PTR), a cryptoactive created by the Venezuelan Government. This cap translates into US $ 600 per month, according to the quote set for the PTR. Any amount that exceeds this limit will require the SUNACRIP endorsement, which will authorize up to a maximum of 50 PTR ($ 3,000).
With all that the data described here represents, the country seems headed for a "precipice", in the street we can not measure the impact of these transactions that translates into improvements perhaps for a small percentage of Venezuelans who have access to a computer , Internet and smart phones, since the average Venezuelan does not have access to this right now.
In this context I would like you to join this discussion so that you can give me your opinion about it, and if you have some information to contribute, you are welcome.
I believe that the access to bitcoin or any other cryptocurrency is more than all the people in the center of the country where I suppose (it is not an affirmation) the largest number of transactions of this type are concentrated. Since there is a large percentage of Venezuelans without access to this:
What can we do so that a greater number of Venezuelans can improve their economic situation in this way?
Do you have some figures that indicate the percentage of Venezuelans with access to cryptocurrencies?
In the world of crypts open people willing to develop a project that goes beyond enrichment and think about the number of hungry and sick people, is it possible based on blockchain to develop a social project, of help to the needy?
Venezuela needs everyone, both their children and their friends around the world do not you from arms crossed, if you are able to do something please do it.
I hope your comments, proposals and data regarding this topic, I will respond to each of your comments respecting your point of view in this matter.
Pagina consulted CRIPTONOTICIAS
The images with the data were taken from the CRIPTONOTICIAS page
Fondly
Pr EV
Excellent article @fucho80
Bitcoin and other censorship resistant money will be imperative going forward. On a national front, I have said it earlier, Venezuela must look at internal sustenance. 70% of food comes from abroad, since the govt and companies do not have the means to pay other countries, they are facing a food shortage.
Finding alternatives to just oil is important, but this current regime is quite selfish and incompetent. This is why bypassing the government and creating a private economy of sorts is important.
Posted using Partiko Android
Dear @reverseacid thanks for your valuable contribution.
We totally agree on that, the whole situation of scarcity in Venezuela is a product of the lack of production in our country, now, everyone knows that but the government is disregarding this issue. It seems that the only way out is an urgent change of government, because the town is suffering very serious consequences.
This is precisely why cryptocurrencies have become an economic alternative for many Venezuelans, my biggest concern is for those who still do not have access to this type of economy and suffer from hunger and diseases. On the other hand the government is not open to give alternatives to people, then the international community and the communities around the blockchain should think about projects aimed at these people.
Thank you for your intervention, for the support and sensitivity to the situation that we live in Venezuela.
Fondly
Pr EV
Hi @fucho80,
Thank you for this well researched post. You point out that the usage of cryptos is restricted to the people having access to a computer or a phone and internet. This is the big problem that prevents mass adoption in addition to lack of knowledge.
An idea would be to create paper wallets that contain a fixed amount of btc. These wallets would contain the address and also the keys. Among people who trust each other these paper wallets could be passed around like banknotes. You could always check with a blockexplorer if the amount of btc is still on the wallet. Like that people even without access could use btc.
This is just an idea and I don't know whether it is a realistic one in the contexte of your country ?
Best regards
Achim
Posted using Partiko Android
Appreciated @achim03, it is a great idea that you propose and it is very useful for those people who have knowledge of the blockchain, but I think that to the implementation of this method there should be a previous educational campaign that trains people in what blockchain means, logically, this requires investment of time and other resources that could be channeled through a group committed to this cause. However, what you propose would be a good start.
Thank you for your very valuable comment and this proposal. I know your sensitivity for the Venezuelan issue and I congratulate you for the initiative in favor of this cause @help.venezuela.
Fondly
Pr EV
Dear @achim03
Would that even be posibble? I wonder ...
Dear @fucho80
Considered all the financial alternatives that we have. We Venezuelans seek a way to escape this economic siege that we internally have.
Since the crypto became known in its first steps with people who believed in it and of course they had the economic power, I knew about them but my investment capacity was all in buying food. But it's never too late when happiness is good.
Excellent friend, I congratulate you.
Dear @lanzjoseg, what you say is very true and thank God you have the possibility to access this type of technology that has helped you to combat this crisis that overwhelms us, I am just opening my eyes to this world of cryptocurrencies and I still do not manage well all this, that is why a large number of Venezuelans do not have access to this technology and suffer many needs due to lack of alternatives like this, they must be directed to a project that equips them to also enjoy these kinds of opportunities.
It is a permanent struggle for survival that makes blockchain and cryptocurrencies more valuable and necessary, let's fight because more and more Venezuelans can have access to cryptocurrencies.
Thank you friend for that valuable comment and support this publication.
Blessings!
Pr EV
Dear @fucho80
It does actually amaze me that Venezuela is at the front of this technological revolution. Many eyes are on your country in current days. Sometimes it does look like some sort of global "experiment".
Oh, Seriously? I wasn't aware of that. Great info buddy.
It amaze me that entire europe has "no trading volume" comparing to your own little country. Amazing.
Definetly I will pay much attention to your country and mass adoption of crypto that is taking place there.
Thx for excellent read
Piotr
Friend @crypto.piotr, of course it's amazing data that I never imagine seeing, but when around me, in my region are very few people who understand cryptography.
Months ago I heard the testimony of a person who left his job at the state oil company PDVSA to invest in cryptocurrencies and it turned out much better, perhaps they are hidden activities for fear of the government itself (imagine).
Thanks for your comment, it's always nice to hear from you.
Hola fucho80,
Tu post ha sido seleccionado por el bot de @provenezuela, te hemos dado un voto en apoyo a los autores venezolanos!
Gracias por ser parte de nuestra comunidad!
Gracia amigos, realmente aprecio su apoyo. Ustedes mas que nadie saben lo que signifiCa esto para nosotros en esta situación que atraviesa nuestro país.
Gracias y mil bendiciones.
Pr EV
Congratulations @fucho80! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Do not miss the last post from @steemitboard: