FEATURE Venezuelans Have Turned to Cryptocurrency to Survive

ROBERT STONE

In the past months, the Venezuelan bolivar has lost almost 40% of its value against the U S dollar Some reports attribute this problem to seasonal payments the government must make as well as a lack of liquidity on the government's part to intervene in the currency market

The Venezuelan Currency is in Free Fall

Despite enjoying a recent period of relative stability, the Venezuelan currency, the bolivar, is losing value rapidly� As of Oct 25, each dollar was worth 9 05 bolivares, according to the popular price index Monitordolar

On No 26, the exchange rate increased to 12�63 bolivares per dollar Against the U S dollar, the currency has lost almost a 40% in parallel markets, alarming citizens who worry about the accelerated pace of devaluation in the market as a result of bonuses and payments that the government and companies give out According to Venezuelan economist Jose Guerra, this is part of his theory As Guerra stated, high inflation has decreased demand for bolivars, so when they are put into circulation, people buy goods and dollars to protect themselves from inflation and deflation. head of Ecoanallitica, a research firm specializing in economics, the Central Bank of Venezuela has also been unable to inject liquidity into the official exchange markets During one week in August, Venezuela's currency lost 35% of its value against the dollar

Crypto's Influence

use black-market dollars for everything they need It is not all doom, peril and gloom, however Venezuelans are thriving thanks to cryptocurrencies such as Bitcoin, which are breaking out of their government's self-made crisis�

Economic Disaster Due to Crashing Bolivar

This plunge can be explained

in

Several

ways During the holiday season, analysts expect this nosedive to occur as a consequence of the increased liquidity

In addition to sanctions, which impede the movement of money collected mostly in cash for oil sales, the lack of dollar inflows is due to various reasons According to Asdrubal Oliveros, the

Venezuela is in crisis due to hyperinflation, stalled oil operations, and escalating tensions with the United States� Ordinary Venezuelans are suffering the most as a result

A hyperinflationary economy forces many Venezuelans to

Venezuela's economic collapse has driven crypto use Compared to the US dollar, the Venezuelan Bolivar has lost more than 200,000 percent of its value since 2013 Prices have skyrocketed as a result The tightening of US sanctions and the rise in unemployment have made this situation worse

Cryptocurrencies Mean Survival to Venezuelans

Cryptocurrencies and Bitcoin have become popular among Venezuelans during these times By using Peer2Peer (P2P) exchanges, Bitcoin (BTC) can be purchased digitally and directly without using US dollars A global asset, it can be purchased anywhere Remittances and foreign bank accounts can now be digitally converted into cryptocurrencies by Venezuelans Buying it is possible anywhere in the world Compared to the local Bolivar, this is more stable.

The country is one of the fastest adopters of cryptocurrencies in the world Venezuelans typically do not hold cryptocurrency as a long-term inflation hedge Food, medical supplies, and everyday purchases are being purchased with it instead Venezuelans may be able to breathe easier once decentralized currencies help break down the state's grip

Venezuelan merchants have started accepting bitcoin payments directly in order to accommodate this demand With 20,000 point-of-sale terminals being created in Venezuela through a deal between Panamanian cryptocurrency exchange Cryptobuyer and Venezuelan payments processor Mega Soft

Bitcoin can be difficult to use, even with these services, so many Venezuelans have instead turned to custodial solutions like AirTM Using this wallet, Venezuelans can send and receive cryptocurrency within a network Venezuelans can now make purchases abroad more easily with this service, which is especially helpful for freelancers It would be extremely difficult for many Venezuelans to function without Bitcoin and the related services offered by private companies

Taking Control of Crypto is a Government Priority

For many Venezuelans, cryptocurrency is a lifeline, but it is a headache for Nicolás Maduro The primary advantage of Bitcoin is that it allows citizens to engage in commerce and trade without government interference� By doing this, the government could lose control of the black market, which could weaken its grip on the populace

A nationalized cryptocurrency has been created by the government to combat this The Petro was created in 2018 as the first attempt. This coin was tied to Venezuelan oil and provided a stateapproved alternative to other cryptocurrencies Passports and other government services must be paid in Petro, a cryptocurrency eagerly embraced by the government

Despite this backing, the Petro failed to gain traction PDVSA, the debtridden state oil operator, was alleged to be the true backer of the coin, which was supposed to be backed by Venezuelan oil Furthermore, Venezuela's allies supported the Petro to a limited extent Petro is all but dead due to Venezuelans' reluctance to adopt the cryptocurrency

As a result of Glasnost and Perestroika, the Soviet Union fell Venezuela may be experiencing a similar phenomenon Inadvertently, state-backed economic freedom via cryptocurrency might undermine government control over its citizens and usher in more libertarian economic policies by weakening the state's control� Regardless, Venezuelans can only benefit from increased access to cryptocurrency� The socialist government's disastrous decisions would be mitigated to some extent with more liquid and stable payment and transfer methods� With some luck, decentralized currencies could help to break down the grip of the state and let Venezuelans finally breathe free.

There is no longer a distinction between science fiction and the Metaverse Technological advancements usually do not come as a surprise Many modern technologies, including the Internet, smartphones, and the cloud, had their origins in science fiction. With the arrival of the "next big thing" of the digital age, everyday life may change forever� We call it "the Metaverse."

Virtual reality, augmented reality, and the Internet are combined into the Metaverse Although no one knows exactly what the Metaverse will look like,