Pay attention to Venezuela

bitcoin
cryptocurrency
gold
venezuela
bolivar

#1

http://heavilyarmedclown.com/wp/pay-attention-to-venezuela/

And this ladies and gentleman, is why we own Bitcoin. Venezuela is a one-two punch for Bitcoin. Firstly, prior to revaluing the new Sovereign Bolivar to 96% of the currently circulating Bolivar, the previous Venezuelan Bolivar had already been massively susceptible to hyperinflation and devaluation under the current Maduro regime. This clever trick is not the fault of a difficult to manage economy, but rather the direct result of the theft of the wealth of Venezuela’s people, through the hidden tax of inflation.

Secondly, and maybe more importantly, Mr. Maduro has paved the way to Bitcoin adoption by attempting to use cryptocurrency as a reset button for his now worthless and hyper-inflated Bolivar. Suddenly, as wealth looks to flee the quickly devaluing, government backed, fiat money to the hardest store of value available…as it always does during such times of economic crisis…People are looking not only to the gold similar to that which Mr. Maduro is stroking in the photo above, but to Bitcoin.

See, what president Maduro doesn’t understand about market economics (or maybe he and his advisors do understand perfectly well), is that as long as Bitcoin exists, and as long as he continues to practice the sneaky trick of stealing his people’s wealth, his nation’s money will flee into the hardest stores of value it can find. But, he has already done his people the favor of introducing them to this newfound invention known as cryptocurrency with the introduction of the Sovereign Bolivar.

Now the Venezuelan people are faced with a choice, do they turn in their worthless paper currency for this arguably, already more worthless digital cryptocurrency…which nobody wants and is even MORE susceptible to manipulation and corruption than ever before, do they turn to the gold which may be prone to confiscation and difficult to transport (and perhaps even more difficult to transact with), or do they turn to something new.

Something perhaps, like an immutable, censorless, global transaction network…built upon a sound money protocol which cannot be inflated or manipulated for the gain of a small minority at the expense of the many. Something which, as I said, Mr. Maduro has already introduced as a new medium for transaction of value to an entire nation of nearly 32 million people.

With 1143 BTC changing hands in a single week, a milestone in and of itself, it will be interesting to see how such trading volume could impact Bitcoin over the next year, or the next decade or the next century…as Bitcoin becomes more and more scarce due to its ironclad monetary protocols. No doubt the price of Bitcoin in Venezuela is currently well above the global average spot price. What happens during the next global economic recession? Or worse? Where will the money flee?

Pay attention to Venezuela.


Venezuela’s Cryptocurrency Petro Has No Users, No Investors and No Oil to Back It Up
#2

People will sell assets and sit on cash. Cryptocurrency is a very high risk asset class and will likely remain so until mass adoption can be achieved. People sell off high risk assets during recessions.

Unless bitcoin is mainstream before the next economic collapse (which I doubt) I would bet on the price dropping during a crisis.


#3

I disagree.

Pay attention to the case studies. This is one. Zimbabwe is another.

What happens to the demand/price of Bitcoin in these mini economic crisis bubbles at the nation state level?

Bitcoin’s network value is what gives it an intrinsic value. I can transact with anyone, anywhere, at any time. I would argue that Bitcoin is very low risk on a longer time line, such as year to year or 3 year basis. I would never make a similar claim for fiat money.


#4

People will sit on cash as long as it is less volatile than crypto. For a while, cash went all over the place in value while Crypto went all over the place, but mostly up in value.

Do you sit on a currency that will likely be worth 1/100 of what it is now, or a currency that might go to half value?


#5

Statistica’s new report says Turkey has the highest percentage of population that owns crypto.

It’s easy to see why. See what a 58-year-old retiree said in an interview with Bloomberg below.

Imagine if exchanges declared that users could no longer sell Bitcoin after 50% drop.

https://cryptonewsreview.com/turkish-population-has-highest-percentage-of-crypto-investors/


#6

Depends on the severity of the economic crisis. If inflation was out of control I would most likely invest in things I need such as food, tools, supplies and easily tradeable items such as :smoking: and :tumbler_glass: . I do not believe an economic crisis is a catalyst for a BTC price increase. The more BTC gets tied to financial markets (ETFs) the more it is likely to be correlated to them.

I am long fiat right now. :dollar: :rocket:


#7

I also believe Turkey and Argentina will have a econmic meldown. Brazil is basically hanging on a tether.

Dominos effect. BTC to the MOON and ICX>


#8