Where some see failures, others see opportunities: The case of China and Venezuela.
Hello everyone...
It is very true the saying: "Where some see failures or dangers, others see opportunities". And when thinking about this saying, what is currently happening with China and Venezuela comes to my mind, both countries with the same political ideology but with very different ways of thinking about cryptocurrencies.
For example, the Chinese government is in a war to the death against cryptocurrencies, whether with regulations, bans, or expulsion of miners, China is making its position on cryptocurrencies and their use in the Asian economy very clear, closing its doors to the great number of opportunities that can be obtained thanks to cryptocurrencies. But if we look at an allied country of China located in South America, which as I said has the same political ideology, we will see that instead of expelling and banning cryptocurrencies, they see them as their opportunity to get out of the deep crisis that has existed in the country for almost 10 years.
Venezuela is ranked as one of the 10 most cryptocurrency-friendly countries, in fact weekly moves more than 30 million dollars in the volume of bitcoin alone, not counting the other cryptocurrencies that are used. In addition, Venezuela has, together with the Philippines and Thailand, the highest adoption of crypto games, for example in Plant vs Undead alone there were more than 200K active players, and finally, there is the issue of miners, since mining in Venezuela is legal and this has made hundreds and hundreds of enthusiasts join mining, generating income in bitcoin or other cryptocurrencies.
To all these opportunities presented, the Venezuelan government far from prohibiting and foolishly refusing to eliminate the use of cryptocurrencies has opened its economy to their use and has promoted large businesses to use them. For example, hotel chains, restaurants, clothing stores, etc... The casinos that were extinct in the country, have reopened but accepting SLP, AXS, BNB, BTC, ETH, and USDT as means of payment.
Why do two countries allied in political ideologies and ways of seeing or controlling power, have a different position to cryptocurrencies? Mainly because of the destroyed economy that Venezuela currently has, since 2013 the GDP has contracted by more than half and the economic crisis, health and in every way we can think of, have made Venezuela a country very open to opportunities, for example in 2010 Venezuela regulated and controlled the dollar, and if any merchant wanted to accept dollars as a means of payment he would have to face 20 years in prison plus millionaire fines, but if we look now at the Venezuelan market we will notice that the dollar is present in more than 60% of the economy, as it is the most used currency, while the remaining 40% is between cryptocurrencies and very diminished the Venezuelan bolivar.
Anyway, all this crisis has pushed Venezuela to adopt cryptocurrencies as it attracts foreign investment and local investment multiplies as well, as there are people in Venezuela earning more than $2K monthly with crypto games, so if they release the crypto economy in Venezuela, it will strengthen and grow rapidly.
Right now the Chinese government is totally against cryptocurrencies, but all of a sudden they will realize that their only way out of so much economic crisis is cryptocurrencies and that countries like Venezuela and Nigeria are surviving and recovering from the huge crisis left by the pandemic will be the countries that will lead the stable economies in a few years, it only remains to wait and see the whole show.
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