The world’s richest country in oil has descended into a humanitarian crisis as starvation becomes prevalent, millions of refugees flood neighbors, and money no longer functions to store value.
Inflation in Venezuela has become a thing of legends. It is now higher than even in Zimbabwe during its peak, some say. It costs between 4.000.000 to 4.500.000 Bolívars for one meal, a Venezuelan says.
Can Bitcoin Cash Rescue Venezuelans? – we asked at the beginning of the year. A month later we reported on children fed with Bitcoin Cash (pictured above). Word quickly spread with weekly localbitcoin volumes in Venezuela spiking to new highs:
That’s some $3.5 million in peer to peer trade. In a country where monthly wages are now just $3, cryptos appears to have gone mainstream in Venezuela, at least in awareness.
In such human tragedy, you’d expect aid planes or helicopters to be throwing food, yet they appear to be no where to be seen. The cryptonians however are metaphorically on the front lines. Here is a Venezuelan who was donated some nano, a new cryptocurrency. He says:
“I feel extremely happy because today I was able to convince someone who I trust to accept NANO (he was already accepting bitcoin cash) in exchange for food.
He sold me 102 kilograms (224 lb) of food, including cornmeal, meat, rice, sugar, beans, sauces and avocados. I’m still waiting to see if I will be able to buy powdered milk and cooking oil from this same guy.
This is wonderful because I’m hoping to send proper food to the people. This morning someone came to my house and asked me for food and of course I gave them some kgs.
Her face was pure joy. This would be the same for others 10 families who will receive love and food tonight from you guys.”
There is little comparable to the memory of when complete strangers came to help in your hour of need. They’ll remember it was cryptos that came to their aid, when neither their own governments, nor foreign governments, nor aid agencies, did.
Geopolitics be damned, cryptonians are saying. We could have been at the receiving end in a different cosmic lottery. Nor do Venezuelans appear picky regarding which currency they accept. They’re all money as far as they’re concerned. They all turn into food. Another Venezuelan says:
“The cryptocurrencies help me, my family and those who can help, thanks to its great value because of the devaluation of the local currency.”
He says he used to work for crypto, writing things, designing things, small jobs here and there. His laptop, however, broke down. A very generous cryptonian sent him $100 worth of Bitcoin Cash while on r/ethereum.
Fiat money is a treacherous thing. One day all is fine, the next day it buys nothing. Yet in this day and age, there is no longer a money. There are countless of global decentralized digital currencies and anyone can create one if they please.
They could even take physical shape in notes or coins, if the government didn’t imprison the crypto minters. Yet the government itself could utilize global people’s money to avoid situations like the one facing Venezuela for then money wouldn’t be based on their own particular economy, but on much of the world.
In the case of Venezuela, for example, the current troubles appear to have begun when Obama and much of the west placed sanctions on Russia following their invasion of Ukraine.
Those sanctions led to a fall in oil prices, or the fall in oil prices was orchestrated in addition. Countries heavily dependent on oil, including Nigeria and many others, thus experienced considerable fluctuations in the value of their money.
It is in Venezuela, however, where things got out of hand completely. Their government did turn to cryptos in a way by issuing a tokenized oil backed currency, the Petro. Trump made it illegal to transact in Petro, with one Venezuelan saying ordinary people do not have access to the tokenized oil coin. It is only used by the Venezuelan government when it wants to make payments, they say.
But could they use an already established crypto that currently does have capacity, like Bitcoin Cash? Well, the government itself probably is, probably bitcoin too and others. The Venezuelan reports, for example, the government tracks energy usage and if abnormal, comes to confiscate your miner.
Of course, that miner has significant value, so they’d probably turn it on themselves in their army barracks or government factories and so gain some real money.
It is unlikely to amount to much, however, with the humanitarian crisis continuing. That might destabilize neighboring countries, who are having to absorb so many refugees. Eventually they might even make their way to America, like Syrians to Europe.
Because eventually this will end somehow, you’d think. The government could simply stop printing money. They could even remove many notes from circulations and drop all those nonsense zeros. But in the meantime the people are starving, and when no one came, cryptonians did.