Here’s How Cryptocurrencies are Helping Mitigate Bad Centralized Currency in Venezuela

For Venezuelans, cryptocurrencies aren’t a novel concept about the future of the financial world, they’re increasingly becoming a part of daily life.

Venezuelan Crisis

According to a recent estimate from the United Nations, more than 3 million people have fled Venezuela since 2015 amid the current economic and political crisis. While violence is still a problem in the country, one of the other pressing concerns for many is the economic turmoil and hyperinflation of the local currency, the bolívar.

Chart: Prof. Steve H. Hanke

Cryptocurrency Solutions

While there’s no denying that bitcoin prices fluctuate greatly, its price movement pales in comparison to the runaway devaluation of the bolívar which hit estimated inflation of 1.37 million percent in 2018.

Centralization

Of course, blockchain technology alone isn’t the secret end-all be-all to help citizens circumvent terrible centralized currencies like the bolívar. Similar to the way JPMorgan has created a non-cryptocurrency “cryptocurrency,” so too has the Venezuelan government in the past.

The Bottom Line

While Venezuela provides one of the best examples of how cryptocurrencies can help people circumvent centralized currencies, it’s not alone. Beyond the hyperinflation of the bolívar, there are many other cases where cryptocurrencies stand as the most viable alternative for transferring value.

One factor remains consistent though: decentralization is crucial.

Team Decentranet

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Co-Founder @AMMAHealing, Partner @Decentranet, Co-Founder @D10e, communicator, writer, ENTJ. Free speech ❤ #blockchain #bitcoin #crypto #liberty #hempheals