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The Almighty Buck

Venezuelans Flock To Cryptocoins Amid Spiralling Inflation (bloomberg.com) 127

An anonymous reader quotes Bloomberg: Demand for digital coins is soaring in Venezuela amid an escalating political crisis that has protesters demanding that President Nicolas Maduro step down. Inflation has spiraled to the triple digits, debasing the bolivar and depleting savings, while citizens struggle to find everything from food to medicine on store shelves. "If you're going to be in something volatile, you might as well be in something that's volatile and rising than volatile and falling," says Ryan Taylor, chief executive officer of crypto currency Dash Core, the third-largest digital coin by number of transactions... Bitcoin trading volume in Venezuela jumped to $1.3 million this week, about double the amount that changed hands two months ago, according to LocalBitcoins.com...

Venezuela's currency has become nearly worthless in the black market, where it takes more than 6,000 bolivars to buy $1, while bitcoin surged 53 percent in the past month alone. But it's not just about shielding against the falling bolivar, as some Venezuelans are using crypto currencies to buy and sell everyday goods and services, according to Jorge Farias, the CEO of Cryptobuyer.

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Venezuelans Flock To Cryptocoins Amid Spiralling Inflation

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  • Dash? (Score:1, Troll)

    Let's go guys, buy Dogecoins too!

  • according Joseph Stiglitz, World Bank executive, Nobel Prize winner, and Clinton advisor. With globalist experts like him setting economic policy around the world cryptocurrency volatility doesn't look so bad.
    • They use crypto-currency because their own currency sucks, they aren't allowed to use anything else, but they can't stop you using a crypto-currency. If a major country supported a crypto-currency it would quickly become a defacto world currency. Safe, can't be blocked easily, and you can avoid taxes/government control.
  • by Anonymous Coward on Saturday June 17, 2017 @06:46PM (#54640269)

    It's only a matter of time now. Maduro has armed tens of thousands of militia gang members. The criminals are also armed and looting and killing at will. People are starving to death and will eventually face a choice between a slow lingering death or going down fighting. It will happen quick once it gets started. Mobs will break into the arsenals and loot the weapons. Military units will face a choice of whose side to join, as they did in Syria. Maduro has made many enemies who will take the opportunity to settle scores and lots of hungry young men with nothing to do and no prospects will relish the chance to bleed the elites. All that's needed now is a spark and Maduro is sure to bungle into one sooner or later.

    • Thanks for that. I needed cheering up.

      I watched ''Threads'' and ''The Day After'' and listened to all four of Marillion's albums, twice, and none of them worked.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      > It's only a matter of time now.

      I'm not sure you're giving a warning or just implying this will bring some kind of closure.

      If it's the latter, it won't work. War never works.

      Maduro is getting cornered and can't see a way out; the bloodbath solution will bring a heavy toll, don't doubt that for a second. Right now, IMHO, the best solution is for Maduro and his gang to seek some kind of asylum to live safely in a neutral place -- and leave Venezuela to be reconstructed, because it's already half destroyed

  • by Anonymous Coward

    If only Pinochet could help them...

  • by locater16 ( 2326718 ) on Saturday June 17, 2017 @07:49PM (#54640431)
    Right now a lot of people use Bitcoin as a gold substitute. It's valuable because it's (relatively) secure and rare, exactly why people used gold for so long. But like gold, it's not actually practical for using as an everyday means of exchange.

    Currency exchanges take too long to verify (half an hour or more), cost too much to do so (minor transactions can cost more to verify than exchanged hands), and the whole system sucks up a lot of power. While cryptocurrency as a valid backstop against incompetent governments is a great idea, a more technically proficient cryptocurrency, better designed for everyday transactions, would be a huge boon.
    • The need for faster transactions might help explain the rising popularity of Ethereum. From themerkle.com [themerkle.com]: "the average block time sitting at the 14 second mark ever since April of 2016."

    • Bitcoin is "valuable" only because it is designed as a constantly deflating currency yet the coins themselves can be split down to continually smaller amounts.

      I don't understand why anyone would willingly use a currency like that. The majority of it is just being horded or held for speculation.
    • Gold is not practical as an everyday means of exchange either - there are a lot of ways to commit fraud with it. Alloys, plating, shaving coins. It's also very vulnerable to theft, and can only be used with a direct physical transaction - no good for buying things online. It was 'good enough' for a long time, but there's a reason the banking industry grew. First as a way to make managing gold more practical by keeping track of who owned the gold rather than actually moving the gold around, and eventually ju

  • by Anonymous Coward

    There are always crazy Venezuelan gang bangs on chaturbate. They must be really desperate.

  • In the USA the central bankers are now arguing that their so called '2% inflation target' should be raised to a higher number because in their NSHO the country 'has been suffering from a low interest rate for a while', so they are saying it is OK to have a higher inflation targe for a while to 'even things out'.

    A bunch of modern voodoo black magic mambo jambo is being pushed from government propaganda channels, government has no idea what it's doing but of-course we cannot admit this, admitting this would f

    • Most savings are in the form of investments and real property and are simply not affected directly by inflation. They are only affected indirectly when government requires fiat currency as a means of exchange and inflation becomes large enough to make that difficult. It also becomes a problem when contracts are written using the assumption of a fixed rate of inflation or when institutions like banks get to set interest rates unilaterally and have near monopolies.

      Overall, inflation is not a big deal per se.

      • Inflation, like credit, is the double-edged sword of economics. You need it - a little inflation is vital for an economy to function, not least because it makes that credit available. If it isn't carefully controlled though, it can grow out of hand and destroy everything.

        • Inflation could run at 50% a year without any problems, as long as it was a guaranteed and steady 50% a year; people would simply do the math to translate monetary amounts over time and write contracts accordingly.

          The absolute level of inflation doesn't matter to the economy; what matters is unpredictable changes in the rate of inflation, either up or down.

          • It couldn't, because such a high rate would make saving money impossible. No investments could possibly return a rate so high, so no bank could pay interest. As a result credit would be entirely unavailable, and anyone (business or individual) intending to maintain long-term wealth would do it by buying assets of consistent value. The retirement fund would return to being a stash of gold bars under the floorboards.

            • "The retirement fund would return to being a stash of gold bars under the floorboards."

              Why would it have to be under the floorboards? The bank could pay you interest on your gold, in gold. Put in 1 ounce now, get back 1.07 ounces a year from now. Now you effectively have gold backed currency.

              Of course, when you convert that gold, you temporarily have to use money. So let's say your one ounce is worth b$1000 at the beginning of the year and inflation is 50%. At the end of the year it's worth b$1605. So the 7

  • "If you're going to be in something volatile, you might as well be in something that's volatile and rising than volatile and falling," says Ryan Taylor, chief executive officer of crypto currency Dash Core..

    Indeed. Just ask anyone from Zimbabwe, or Albania. (Disco Stu voice) "And if this trend continues... Eyyyyy!"

  • The article talks about massive inflation related to bitcoin as if it is a recent thing. The graphs in the article show interest started over a year ago, yet the traded value of the currency is on par with what it was this time last year after a brief 10% dip 60 months ago.

    What gives?

  • Local currency is better than cryptocurrency

Nobody said computers were going to be polite.

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