In recent months, Bitcoin buying and mining in Venezuela has spread widely, giving rise to rumors about the development and demand of cryptocurrency there.
Andean Capital Advisors in an interview with Daniel Osorio onCNBC that the country may soon be fully “Bitcoinized” . Osorio, who spends almost a week of every month in this South American country, talked about the high inflation values that Venezuelans struggle with. During the interview, he stated that a simple lunch costs around 200,000 Bolívars, or $8-10.
Bitcoin only
Lunch Local businesses have started to accept only Bitcoin or wire transfer of foreign currencies for payments. The real problem, according to Osorio, is that Venezuela does not have access to enough dollars to run their economy, like Zimbabwe or other countries hit hard by high inflation
This is why locals switched to Bitcoin so that the economy could function. Since Bitcoin is independent of the Bolivar black market, it creates a stable exchange platform. Towards the end of the section Osorio:
“We may be witnessing the “Bitcoinization” of a sovereign state.” said.
Since transaction volume and reach have increased exponentially, crypto lovers can argue that this news is only a forerunner of what will happen in the future.
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