Can Bitcoin Spread In Venezuela Beyond Just Buying Coffee?

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Bitcoin and other cryptocurrencies are considered by many as a good alternative for Venezuelans as the country witnesses’ one of the worst hyperinflation in recent history.

However, if cryptocurrencies are to make an impact, they will need to be used for transactions, beyond just the purchase of coffee.

Best time for Bitcoin adoption to rise in Venezuela

Roughly three weeks ago, Venezuela’s President Nicolas Maduro made some monetary changes that further plunged the country into chaos and uncertainty.

He devalued the Bolivar, the nation’s fiat currency, introduced some new bills and linked the new bolivar’s value to the national oil-linked petro cryptocurrency.

These changes saw the official rate for the currency rise from 285,000 per dollar to 6 million. To eliminate the shock which would be caused by the devaluation, the minimum wage will be raised some 3,500%.

According to the IMF, things would only get worse for the country as the inflation rate is expected to reach 1,000,000%.

The tough economic situations have seen the purchase of Bitcoin reach an all-time high on LocalBitcoins exchange as more people look to store their funds on cryptocurrencies.

Bitcoin and other cryptocurrencies are also becoming popular as means of payment, with cash now being disregarded by many.

Despite this trend, it still remains hard for citizens to find stores that accept Bitcoin in the country. Legally, only Bolivars are expected to be accepted by merchants, and this has made it hard for payments to be made using Bitcoin.

The trend might be changing though as more people and groups are advocating for Bitcoin to be used as a means of payment. Cash is used for the payment of transport, gasoline, and tolls in the country.

If Bitcoin is to gain the mass adoption expected in the country, more products and services should be sold using the cryptocurrency.

There are excitement and optimism amongst the cryptocurrency community about the rise of Bitcoin and cryptocurrency use in the country. However, many still feel that Bitcoin is meant for more than just buying coffee.

More shops and merchants need to be encouraged to start accepting Bitcoin and its use as a means of payment. Bitcoin being adopted as another form of exchange in the country will make things easier for the citizens.

They would be able to transact anywhere, anyplace, without huge merchant fees like cards have. For Bitcoin, there is no single use case for it. It can be used as a store of value while also used as a means of payment.

Even though there is a long way to go before Bitcoin replaces fiat currencies, if it ever does, Bitcoin and other cryptocurrencies is the best option for Venezuelans to protect themselves against devaluation and its effects.

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