Cryptocurrency- While the ongoing inflation and forced impoverishment of the Venezuelan population is at the limit of a crisis, the scenario surrounding the government's fiscal policy, the legal use of the fiat and the role of cryptocurrency is creating an interesting incubation for the industry.
It began with the growth of adoption for Bitcoin in the besieged country, with citizens seeking an alternative to escape from the six one hundred thousand percentage increases for inflation (to a pace to hit one million by the end of the year). Bitcoin, which has long been referred to as an excellent digital archive of similar value to physical gold, has allowed Venezuelans to use a global currency with much lower price volatility than the now worthless Bolivar . While most of the Western world, especially the older generations interviewed in the investigation complain about the irregular swing price of BTC, a feature that has been enriched by Nobel Prize-winning economists, Venezuelans crowd the currency in an effort to avoid paralyzing inflation of their legal currency, providing strong support for the validity of the digital heritage.
However, that same adoptive population is also realizing the limits of Bitcoin, a series of difficulties exposed in January during the peak of BTC prices. While mining fees have fallen substantially from the average of $ 55 per transaction at the start of the year, Venezuelans are turning to a currency that offers more benefits. DASH saw an explosion both in price appreciation and adoption over the past week, as cryptocurrency is moving towards choosing to opt for the encrypted portion of Venezuela that desperately needs a race focused on the transaction separate from the government fiat.
As previously reported of EWN, DASH is seeing the rise of two hundred new mercantile adoptions per month in the country, with the trade-oriented population benefiting from significantly reduced transaction times of the currency compared to competitors like Bitcoin and Ethereum. While Bitcoin continues to hold the lion's share of the market and almost all recognition of the cryptocurrency brand, DASH, NANO and other transaction-focused currencies are quietly making a name for themselves in their ability to offer fast, cheap (or paid) service -less) alternative to traditional money.
Given the abuse of government tax policy, rampant inflation and bureaucratic control over money that has devastated countries throughout history, it seems unlikely that Venezuela will be the last situation for get international attention on a paralyzed monetary system. The average investor in cryptocurrency may have the potential to profit, but most developers and enthusiasts in the industry recognize that the underlying power is not only in blockchain, anonymity and security technology, but of the decentralized framework that is put into practice when large populations change from the fiat government. Venezuela is a real-time incubator that deals with how cryptocurrency can respond to a situation of ineffectiveness or traditional supply as a primary source of money. While the market has responded predictably, favoring the currencies that offer faster and cheaper transactions, it also gives credit to the intrinsic value of currencies that has been regularly written down by economists and other academic circles. Bitcoin can not be supported by physical property, but still retains value for the Venezuelan family who keep their BTC earnings and pay for their groceries rather than using the useless Bolivar.
It remains to be seen how cryptocurrency can use situations like the one currently underway in Venezuela to ultimately benefit the growing population and industry. At the very least, he provided an alternative discussion from the endless conversation about exchange-traded funds and price forecasts.