RE: Venezuelan Economic Crisis: An Outsider's Perspective

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RE: Venezuelan Economic Crisis: An Outsider's Perspective

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achim03 (63)in #economics • 5 years ago

Thanks a lot for this nicely researched article regarding Venezuelian Economy.
Through my project @help.venezuela I've come into contact with some very intersting people from Venezuela. Cryptocurrencies like Bitcoin or even Steem can help people to have a way of recieving and storing value that the government can't confiscate.
At the moment the adoption of Cryptocurrencies is not so developed yet and there is a lot to be done for the venezuelians to see the potential of it.

Cryptocurrencies might be an answer as long as there is a minimum of services provided like stable electricity and internet. Which hasn't been the case lately...

A part from the economical struggle the peole from Venezuela suffer also from intidmidation and violence through the governement and its minons. So even if Cryptocurrencies can bring some help, there still needs to be a fundamental change till the people can live with a minimum of decency.

Best regards,
Achim

5 years ago in #economics by achim03 (63)

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reverseacid (56) 5 years ago

Hello @achim03

Big fan of your work with @help.venezuela , didn't know you were running it!

I've been speaking to people on the ground level via Twitter just to separate truth from misinformation. Bitcoin has helped them tremendously save value. Despite Bitcoin being so volatile, the price movements are nothing compared to the Bolivar.

As for cryptocurrency usage in general, I believe the answer does lie in censorship resistant protocols like Bitcoin and Stellar Lumens. Using Petro is fairly useless as despite being built on the XEM Blockchain, it isn't decentralized.

On the political front, I believe it is slightly insensitive to say, but only the Venezuelan people can do anything about it. Rising up is not easy, but at this point I feel it's necessary. The beautiful thing about Bitcoin is that the government cannot shut it down or stop its usage. Venezuela is showing signs of a makeshift private economy that pushes the government out of the market.

I hope this situation is solvable and this just may warrant international action

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achim03 (63) 5 years ago

You are right about the role of bitcoin in a situation like Venezuela. In the past there were only foreign currencies that could bridge high inflationary situations. However foreign currencies can be limited, confiscated or stolen by governments. Bitcoin and other crypocurrencies can be a tool for people in inflationary countries to store value and also to exchange it for goods. I don't know how many bags full of bolivar banknotes you need to buy bread, if you find bread at all... with cryptocurrencies it seems much simpler.

In this respect, I believe that currencies like steem can play a very important role in such situations. The transactions are free and immediate. You could be with your phone at a cash desk where there is only the steem account name of the shop. To pay you send your steem transaction over partiko and the guy at the cash desk checks whether he got it on his account. Free and quick...

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