Venezuela: Due to the hyperinflation outbreak in Venezuela, the prices of bitcoin are doubling in every 18 days. Apart from this, the trading volume of Bitcoin is also hitting the new peaks as crypto traders are rushing for an exit.
Rampant Inflation in the Country
Nothing better can explain the rampant inflation in the country other than this, that around a year ago, 2,300 bolivars was the cost of a cup of coffee in Venezuela but now roughly it costs around 2 million bolivars as per information provided by Bloomberg’s Café Con Leche Index.
It has been projected by the International Monetary Fund (IMF) that by the end of 2018, inflation in the country will hit unparalleled 1 million per cent. So, this accumulates that as per the current inflation rate the prices in the country are increasing by double in around every three weeks.
The hyperinflation has forced a majority of the citizens in Venezuela to live in poverty as they have to spend exorbitantly on day-to-day needs like flour, eggs, milk etc.
Bitcoin Buying Spree
It was reported by Bitcoinist in June that purchase of Bitcoin has touched new heights due to the hyperinflation. This is not only a continuous trend rather it is growing at rampant rates.
Since June, the weekly Bitcoin traded volumes have more than doubled, reaching upwards of 17 trillion bolivars worth of BTC this week alone according to coin.dance.
Going by the exchangerate.guru., today, one bitcoin is worth a just under one billion bolivars. However, the actual exchange rate is still unknown due to the flourishing black market because Banco Central de Venezuela, the central bank of Venezuela, is not considered to be reliable due to the hyperinflation.
The skyrocketing surge in the traded volumes of Bitcoin in Venezuela reveals that citizens are looking forward towards an alternative store of value. The constant appreciation of Bitcoin’s smallest unit called the “Satoshi” against the Venezuelan Bolivar is a prime example of the ultimate fate of fiat currencies.
As the hyperinflation goes on, Bitcoin adoption is only expected to further accelerate within the country.