The growth of prices of Venezuelan citizens pay more and more attention in the cryptocurrency trading, especially against the background of rapid inflation, has reached 14000%.
The Venezuelan government trying to restrain the growth of extreme hyperinflation, intends to devalue its national currency by deleting three zeros from Bolivar. Local citizens to save their money, pay more and more attention to the cryptocurrency, as evidenced by the increasing number of bitcoin transactions that are conducted using the Bolivar, according to Localbitcoins.
According to Reuters, key measures of the devaluation, the government postponed for two months, until August 4 to give the banking industry more time to prepare the new notes and exchange systems. But like President Nicolas Maduro to resolve the problem of hyperinflation that devastated the country’s economy will be of little help in overcoming the crisis.
Bitcoin as an alternative to confrontation inflation
According to preliminary data from the international monetary Fund, this year inflation in the country will reach nearly 14,000%, and Venezuela expects monetary collapse, when people will have to pay millions for basic necessities and food.
In advanced economies, cryptocurrencies such as Bitcoin is still used mostly for speculation and gambling. In countries where the monetary and financial structure is collapsing, Bitcoin can be an alternative that will allow you to keep the stock value against the local currency.
Meanwhile, the Venezuelan government, which virtually destroyed its own currency, the Bolivar, is trying to change the situation by releasing their own cryptocurrency Petro. However, it is unlikely that investors will trust the “new” currency, given the problems of the old.
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