Crypto Currencies Sky Rocket in Venezuela as Country Plunges Into All Time High Inflation.
The recent rise in inflation in Venezuela has led to a cryptocurrency boom that saw it rise from about 150 bitcoins being bought in a week to 6.9 trillion bolivars being spent by June. Venezuela is a country that has been rocked by political unrest with the current president blaming the critics and media for the woes in the country. The blame was also put on the IMF, one of the largest inflation calculating outfits.
IMF was said to be ‘careless’ by Forbes magazine by giving inflation rate forecasts that would easily damage markets. The previous forecast made by the same organization predicted a 12,874.6% rise in inflation. This led to events that caused inflation to the decimal of their prediction. The Central Bank in Venezuela has also not made any inflation rate predictions for the last two years leaving IMF as the only choice to follow. Their prediction is believed to be one of the reasons why the current inflation of 25000% has occurred. Venezuela is on the brink of collapse with medical and food shortage being one of the most prevalent issues.
The boom in interest when it comes to cryptocurrencies seems to be an escape from an irresponsible government with Venezuelans seeking to cash in a global market that is more stable. The first boom was in 2017 of about 850 bitcoins in a week later falling to about 150 in a week. The hyperinflation in Venezuela has led to Venezuelans being the bigger chunk of Local bitcoins audience ahead of visitors from the US and UK.