Hyperrinflation Leads the Number of Venezuelan Bitcoin Users to Double

A spokesman of bitcoin Venezuela told Panampost:

“The price [of bitcoin] never fluctuates at the same rate as the devaluation of the bolívar, which lost 60 percent of its value in one month.”

The country’s largest bitcoin advocacy organization stated that a significantly large portion of bitcoin buyers hold the digital currency, and they are not worried about its volatility. Instead, some are very optimistic on the value of bitcoin, and they are hoping to see a short-term increase over the next few months.

Venezuela’s official inflation rate hit 68% in 2014 and it is predicted to surpass 70% this year. In an attempt to escape the irregular volatility of the nation’s currency, Venezuelans have been desperately trying to purchase foreign currencies, especially U.S. dollars, on the black market, explained Venezuelan economist Luis Oliveros.

Due to the government’s strict control on the purchase of foreign currencies and the plunge in supply, people there are shifting towards Bitcoin. With the rapid devaluation of Venezuela’s national currency, and people’s attempts to escape hyperinflation, the cryptocurrency has risen as a solution