Venezuelan Cryptobuyer Brokerage Sees Soaring Demand (The Cryptoverse #78)

in #news • 8 years ago

Venezuela is in economic turmoil, shaking the country to its core. Venezuelan digital asset brokerage Cryptobuyer believes the country’s situation warrants a broadening in currency options for citizens. To cater to this perceived need, the firm enables Venezuelans to purchase bitcoin — and recently Dash.

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https://news.bitcoin.com/venezuelan-brokerage-cryptobuyer-demand/
https://cryptobuyer.io/

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#thecryptoverse #bitcoin #dash #venezuela
8 years ago in #news by
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     8 years ago (edited)

    Venezuela's economy is very poorly managed.

    1. There is little to no incentive for producers to produce basic goods in Venezuela because of the strict price controls on basic goods. This is why the value of Venezuela's economy has witnessed a downward spiral. And why the value of their national currency has went to the toilet.
    2. It is also more profitable for food producers and merchants to sell goods to smugglers who then sell the goods at market price in neighbouring Colombia. This exasperates the scarcity.
    3. Venezuela is also accustomed to their government subsidizing imports with oil export revenues (CADIVI program). The price of oil has went down. So Venezuelan importers don't have the US dollars to import goods cheaply anymore. This leads to a shortage of imported goods.
    4. The government selling US dollars to Venezuelan importers (or travellers) at subsidized exchange rates many times below the actual exchange value also creates a perverse incentive for profit. Instead of using the US dollars from the Venezuelan treasury in order to import products cheaply, they sell those US dollars for Bolivars (national currency) in the black market for multiple times above the official exchange rate (which is artificially low). Leading to runaway inflation.

    Venezuela therefore is in a situation in which they must increase domestic production in order to combat shortages of good scarcity (the Maduro government has recently started a forced labour program to do just that. Food production is so unprofitable that the government has to literally force people to produce food) and increase export production to replenish their dwindling hard currency (ie US dollars, Euros, etc) reserves, which they need for importing goods. Because they can't rely on CADIVI any longer to subsidize imports. Venezuela's middle-class (small business owners and well-to-do professionals like doctors, engineers and laywers) and rich have their hand out to the government wanting subsidized US dollars. They aren't getting those cheap US dollars any more because the Venezuelan treasury has run out. So these rich and middle-class parasites throw a fit because the party is now over and they want to take Nicolas Maduro's Socialist Party out of government.

    A lot of libertarians talk shit about Venezuela's Socialist Party right now. And they have fucked up a lot. But I can assure you that the right-wing in Venezuela are far from free-market lovers. They have been benefitting from government handouts for a long time. The CADIVI program was constructed by the Socialist Party as a way to placate the rich and middle-class. Who were very upset with the social democracy experiment that Hugo Chavez was conducting. They even tried to assassinate Hugo Chavez. And now that the Socialist Party is forced to tighten their belts and can't subsidize imports and the rich/middle-classes' vacations to Miami anymore with cheap subsidized US dollars, they throw a fit.

    [-]
     8 years ago (edited)

    1929 crash had no alternative....present crash will open door for cryptorevolution. Developing countries have momentum take a lead......west become far more indoctrinated by goverment, state, mainstream doublespeak etc.

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