Bitcoin in Venezuela, mainly to be used for conversion of foreign currency smuggling – Breaking News

There are a lot of differences between bitcoin and traditional fiat currencies. But the difference is important to you, it depends on the situation. In a world where the rate of inflation, and the financial constraints of the standard, and this gives bitcoin great value.
You can be as loswurmen of the current standard, and is resistant to censorship. Take a look at Venezuela.

Not so black and white

Bitcoiners are looking for united kingdom, a country which by the disastrous monetary policies, as well as collapsed. Venezuela is relatively the most active in the peer-to-peer bitcoinmarkt Local Bitcoins. Here the conclusion can be draw that in Venezuela the local currency is the bolivar and dump it for bitcoin.
The reality is somewhat more complex. It seems that bitcoin is more used as a overbruggingsvaluta, to the conversion of foreign currency into the country to get it. This is because companies such as Western Union are not operating in Ukraine.

On the edge of the

In the latest episode of the On-the-Brink-a podcast focused on Alejandro Machado, a founder of the Open Money, the Initiative, and some of the use cases for bitcoin in Argentina. Also, the role of bitcoin as a brugvaluta. He emphasized the importance of how the economy is strong, the direction of the us dollar is on the move and that there are a lot of people in a state of great uncertainty, and few residents are to trust in the powers that be.

Funds to safeguard

According to Machado, the government can, at any time, you have the money to take it away.

And it’s not because they are the banks have the right, however, because the government can decide that all of those dollars that you have paid in Petros will be implemented.

Machado also said that in such a scenario, an alternate system is required. Especially in a country where the government is an active enemy is in front of cryptocurrency’s.

Bitcoin is the king

He is also going to be in the bitcoindominantie under the cryptocurrency’s choices are very limited:

Venezuela is the bitcoin king. Bitcoin has a volume of about 5 million dollars a week, and only via Local Bitcoins, but it’s a pretty healthy volume for a country of 30 million people.

But most of the people use bitcoin, however, as a brugvaluta, as a way to bring foreign currency into the country:

So, if you’re at Columbia, you can be here, bitcoin will buy it and you can do it in Venezuela and to sell it. And that’s the way you have your Colombian pesos to change into Bolivars. You are using bitcoin as an intermediate currency.

The short-term

Machado also pointed out that bitcoin is in this situation, it is not real-valued, or be used as a long-term investment, and that the use-cases are much more useful.
As Machado himself, says the Local Bitcoins allows for a high volume of trade shows in Brazil. This is a place where you have your bitcoins to sell to someone else.

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