In Venezuela, more and more residents of this country are buying Bitcoins to protect themselves against devaluation of their own currency.
Venezuela was once one of the richest countries in Latin America. This is best evidenced by the fact that it was referred to as "Switzerland of America". She boasted the highest standard of living across the continent. Its huge oil reserves were among the largest in the world, even exceeding the resources of Saudi Arabia. Despite this, such a country rich in oil has fallen into a great economic crisis. Today, what is happening there resembles the situation related to hyperinflation from the time of the Weimar Republic. In fact, the currency crisis in Venezuela may be even worse than what happened in Germany in the 1920s.
However, when oil prices fell, social programs and various subsidies only began to exacerbate economic problems. The government tried to save the situation by adding currency, but did not limit the programs on which many poor citizens depend.
Buy Bitcoin to save yourself!
In practice, almost everyone is poor today. Social programs were maintained, but so what if the currency of Venezuela is worth nothing. So it should not surprise anyone that the inhabitants of the country began to escape into cryptocurrencies.
Venezuela buys a lot more Bitcoins than other inflation-threatened economies such as Argentina, Colombia, Turkey and Iran.
It is worth recalling that Venezuela has its Petro digital currency, which, however, issued by the government has not met with a warm market reception. This shows a lack of confidence in centralized solutions in the country. It is also possible that if Nicolas Maduro's regime does not solve the country's economic problems, the state will face "hyperbitcoinisation". It may even become the only salvation for its inhabitants.