Venezuela’s hyperinflation spurs record demand for Bitcoin

posted almost 6 years ago
The month of July saw a high number of bitcoin transactions in Venezuela with August achieving a new record high as more people turn to the digital currency as the country continues to tackle the inflation of Bolivar.In the first week of August, bitcoin transactions in Venezuela reached 141.7 million bolivar that was exchanged for bitcoin, amounting to $14.1 million USD.

This record beat the previous week’s, which saw 117.116 million bolivar being exchanged for bitcoin. Comparing this to the U.S. Dollar the figure equates to $11.7 million. Venezuela’s local currency, the bolivar, doesn’t seem to be on the road to recovery just yet.

Venezuela is a country that is blighted by hyperinflation. Political uncertainty and the decline in the price of oil are factors affecting macroeconomic imbalances and pressures. The IMF states that inflation in Venezuela is predicted to rise to 500 percent in 2016 and further next year.
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