Why are Venezuelans seeking refuge in crypto-currencies? (Dash mentioned on BBC, that’s a first)

Crypto-currencies have faced a lot of criticism since Bitcoin first came on the scene 10 years ago. But for one group of people, they’re proving very useful.

Venezuela has seen its currency rendered practically valueless after suffering one of the worst periods of hyperinflation since World War Two.

A cup of coffee now costs 2,800 bolivars (21p; 28 cents), up from 0.75 bolivars 12 months ago – an increase of 373,233%, according to Bloomberg data. And that’s after a 2018 devaluation that knocked five zeros off the currency.

More than three million Venezuelans have left the country, as essential goods such as toilet paper and medicine have become unaffordable and crime has soared.

As a result, many are turning to digital assets such as Bitcoin as an alternative to the Venezuelan bolivar.

And given how volatile Bitcoin is – its value has plunged from nearly £15,000 in 2017 to less than £3,000 now – it’s an indication of just how desperate people have become.

Even the government has launched its own crypto-currency, the Petro,supposedly backed by oil, to provide a solution to the economic crisis.

But critics say it is a sham and there is no evidence of anyone using it.

• Gold, rabbits and crypto: Venezuela’s strange economic plans

Eli Meregote, 28, has been using……. Please read Full Article at:

Author: Mathew Di Salvo
Original link: http://www.bbc.co.uk/news/business-47553048