Venezuela’s Hyperinflation Sees Record Highs of Bitcoin Use
The month of July saw a high number of bitcoin transactions in Venezuela with August achieving a new record high as more people turn to the digital currency as the country continues to tackle the inflation of Bolivar. Venezuela is a country that is blighted by hyperinflation. According to the International Monetary Fund (IMF), Venezuela is projected to remain in a deep recession in 2016. Compared to contraction rate of 5.7 percent in 2015, 2016 saw a rise of 8 percent. Political uncertainty and the decline in the price of oil are factors affecting macroeconomic imbalances and pressures.....
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Twitter and Square CEO Jack Dorsey has warned that hyperinflation will soon happen in the U.S. and elsewhere in the world. “Hyperinflation is going to change everything. It’s happening,” he predicted. Many people disagreed with him, however.
US Will Soon Experience Hyperinflation, Says Twitter CEO Jack Dorsey
The CEO of Twitter and Square Inc., Jack Dorsey, tweeted a warning about hyperinflation in the U.S. Friday. “Hyperinflation is going to change everything. It’s happening,” he wrote.
Comments flooded his tweet. At the time....
Venezuela’s peer-to-peer bitcoin activity has been extraordinary, whether measured as an absolute or relative to GDP, according to CoinDesk Research data.
The current minimum wage in Venezuela is still just US$12.84. Hyperinflation has been plaguing the Venezuelan economy for quite some time now. It is also one of the reasons why the government decided to mint new coins and banknotes. The next step in the long recovery process is hiking the minimum wage by 50%. An intriguing decision that can affect Bitcoin adoption in the country. President Nicolas Maduro shocked the world by hiking Venezuela’s minimum wage all of a sudden. It is not the first time this happens, although the latest 50% increase seems rather steep. In fact, it is the fifth....
Venezuela, which operates an economy that is crumbling down in debt and hyperinflation, announced the demonetization of 100 bolivar fuerte (Bf) banknotes effective in the next 72 hours. Until the central bank releases higher denomination bills, an India-like panic is presumed to occur. Since mid-2016, the Venezuelan economy worsened, as hyperinflation continued to lessen the value of its national currency that was already virtually worthless. By September, simple products like eggs or bread were sold at US$150 to the general population which in Venezuela was equivalent to stacks of cash.....
Fourteen countries have inflation levels above 18 percent right now, 10 of which are rising at press time. Bitcoin prices and new user adoption have spiked several times in the past during economic turmoil such as banking bailouts and hyperinflation. Bitcoin as Safe-Haven Asset. 2016 had more than its share of global economic turmoil, but 2017 is also....