Posts

In Venezuela, hyperinflation is threatening access to Bitcoin. Monetizing content is the solution.

avatar of @nirvana3003
25
@nirvana3003
·
·
0 views
·
2 min read

From the humblest candy merchant to the most important industrialist in Venezuela, the Bitcoin and cryptocurrency phenomenon is affecting all sectors of society. This South American country continues to lead the world in BTC transactions due to the high volumes of cryptocurrencies mobilized within the P2P market, among other activities involving digital money.

However, hyperinflation is beginning to bend the P2P crypto market in Venezuela, generating an evident setback in the volumes of cryptoasset transactions in 2019, during the first week of February of that year, and only during a single week approximately 2,487 units of BTC were mobilized, which represents about 24 billion bolivars the local currency, according to data recorded by those responsible for the LocalBitcoins platform.

In 2021, during the first week of April and again according to LocalBitcoins data, Venezuela again presents numbers that place it at important levels, however they are distant from the record reached in 2019, being this time an amount of 75 Bitcoin (BTC) units during the initial week of the second month of the year,representing just 9.3 billion bolivars (US$ 3.9K) in exchanges.

This figure occurred almost at the same time as the recent expansion of the Venezuelan monetary cone, which implies a substantial increase in the liquidity of the Venezuelan local currency in the month of April according to data from the Central Bank of Venezuela (BCV).

According to these data revealed both by the BCV along with those presented by LocalBitcoins, reflect the clear impact that hyperinflation is having within the P2P market compared to 2019, today, despite the fact that the volume of transactions remains on the rise, the amount of Bitcoins offered within the buying and selling operations decrease, i.e. more transactions, but fewer Bitcoin units to trade.

Evidently, this situation, which directly affects BTC trading in the country, raises the need to introduce new ways of accessing cryptocurrencies without the use of the local currency, given its inability to maintain a stable value in the short term. The devaluation of the bolivar raises the possibility of drastically reducing the estadśticas regarding the exchange of cryptos.

Then, by removing from the equation the disruptive factor such as the local fiat currency most likely the access to BTC and other cryptos will resume its previous record levels, so Hive and its ecology pose to the Venezuelan people an alternative where both local and foreign fiat money influence the access to the crypto world.

Content monetization is the least expensive way to obtain cryptocurrencies, even to access the king of cryptos the BTC, without sacrificing your personal income. From my point of view, there is no more democratic method of generating income in cryptos than content monetization, since the only mining machine you need is there, inside your head, this way ideas come out and funds enter the wallets.

The important thing about all this is that Venezuelans are willing to accept this challenge, content monetization represents an escape from the drama of living in hyperinflation, but best of all is that more and more people are willing to try this method to obtain cryptocurrencies.

Posted Using LeoFinance Beta