Can Bitcoin Really Take Hold in Venezuela?



Digital currencies like Bitcoin have taken hold in developed nations that have adequate broadband infrastructure, but can this technology take root in countries like Venezuela, which has some of slowest internet speeds in Latin America, second only to Cuba.

According data gathered by Freedom House, about 57% (17.2 Million) of Venezuelans have some form of internet access, with government-owned ISP CANTV owning majority of the broadband IT infrastructure in the country. More recently, internet accessibility in the country has also taken another hit, as power outages are now a daily occurrence, according to a Global Voices report.

Despite the dire economic situation and an unpredictable power grid, some Venezuelans have taken matters into their own hands. Eduardo Hernandez, owner of pastry shop Tortas Don Eduardo, decided to accept Bitcoin payments at his business after researching digital currencies online.

In an interview with DiarioBitcoin, Hernandez explained that he hasn't had any bitcoin sales yet and that he remains optimistic about the future of the technology as more Venezuelans, especially the young and tech-savvy, warm up to the idea of decentralized digital money.

While Mr. Hernandez is among a tiny minority of Venezuelan business owners that have taken a liking to digital currencies, interest in Bitcoin is much higher among Venezuelans looking to preserve purchasing power as the Bolivar collapses.

This trend can be clearly observed by the exploding trading volume taking place on LocalBitcoins - a P2P digital currency trading venue - in Venezuela. Data gathered by Coin Dance shows an all-time high of Bs77,113,271 (162 BTC) worth of transactions for the last week of May, 2016.



While Venezuela is experiencing triple-digit inflation at present, the International Monetary Fund estimates that inflation in the country will likely balloon to 1600% into 2017. Given the IMF's apocalyptic prediction and the current figures coming out of LocalBitcoins, Bitcoin's popularity is likely to soar in Venezuela over the next 12 months.

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8 comments :

  1. it seems too much to a state controlled by the bitcoin or altcoin ... my own country also own center bitcoin (bitcoin.co.id) but nonetheless bitcoin can not and do not up control of my country ...

    SKHcn2bF2QqnpcCnTZEuSJ1K2f8ThjyYNPup

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  2. I think it's very important for a country like Venezuela to adopt crypto.
    It will be interesting to watch since the have some of slowest internet speeds in Latin America

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  3. I think that Cryptocurrency will help people in unstable countries to secure their savings.

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  4. Definitely. The use of the cryptocurrencies in countries that facing economic problems could be a smart safe heaven.
    Cryptocurrency doesn't need a bank that can go in bankruptcy a service that can fail blocking or wasting all your money. The wealthy will remain in the hands of people that can work to restart the economy again.

    GRD Address:
    SDoZntH3Ybf37EZ7Mq8AVwn52C72hbDcn1

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  5. We need money for everything and the banksters have the total control of money, bank can decide to block your payment, government can decide to confiscate your money, now we have a way to broke these chains with a BLOCKCHAIN. Is time for the people to take their freedom. I hope soon many stores will start to accept the existence of cryptocurrencies

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  6. GRC has been sent to all commenters!

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  7. Venezuela is in turmoil right now. People normally look for safe havens such as gold or established currencies such as the USD. With most of the established ones themselves facing lots of votality, and the mainstream introduction of crypto currency as viable alternatives, I think the ecosystem is made more resilient with alternative storage of value.

    S4Ze6kpmK1cFV1kNLUk2fxyy6xWiDMFy1A

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  8. I hope Cyrpto currencies can help the people of Venezuela by bringing stability while also helping the currency as a whole. It would be great to be able to travel to foreign countries and not have to pay exorbitant exchange fees.

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