Cryptocurrency in Venezuela.- Third Country in adoption of cryptocurrency.

The cryptocurrency has been growing progressively causing many developing countries to adopt it, on September 8 in a blog by the analysis firm Chainalysis, publishes a study carried out by the Crypto Adoption Index 2020, with the result that Venezuela is in third place in the Global Cryptocurrency Adoption Index.

How Venezuela got to this point?

When reading this title we could assume that Venezuela has a great economy that invests in new directions such as cryptocurrency, that is why we must do an analysis of how it started:

We must touch on the issue of poverty in my country, in 2005 and 2013, it was at a time when the economy remained a bit stable, where many Venezuelans hoped that our economy would finally rise, to give a life rather, this stability was due to high oil prices. But then in the following years, crude oil prices deteriorated causing the country's economy to reverse, affecting a large part of the country. But the issue of inflation that gallops every day causing the minimum wage to pulverize power, having an average Venezuelan income is only 0.72 dollars a day, calculating that 96% of the population receives this monthly income.

Due to this, Venezuela is in the second place in being the poorest country followed by countries like Africans such as Chad, Congo and Zimbabwe. This due to the mismanagement of a corrupt government, the Gross Domestic Product (GDP) has had a fall of 70%. The income of each Venezuelan is not enough to buy food. Apart from some of the important factors that the brain drain, that many people have had to emigrate to get a better future, these emigrants are estimated to be between 15 and 39 years old.

Here where one of the fundamental points is, such as Venezuela is in the third place to acquire the cryptocurrency, those people who emigrate from each household to another country between 2014 and today are what have helped Venezuelans every day, these people send remittances so their families can eat.

Apart from the fact that many investors who are still in this country, looking for a way to keep their income stable, have chosen to buy Bitcoin because of the growing hyperinflation that makes the local currency lose its value every day.

A last point is the strict control that the government has, which means that the Venezuelan cannot invest in assets such as gold, silver. Then it makes the Venezuelan look for other way out like acquiring Bitcoin.

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