Can Venezuela adopt Bitcoin as currency?

in #currency7 years ago

Some countries with high inflation rates may be tempted to choose Bitcoin as their national currency. Venezuela is one of those.

**The monetary problems of Venezuela. **
Officially the rate of inflation in Venezuela would be 60%, some sources even indicate 140%. Without long-term stability and with such an inflation rate the Venezuelan bolivar can not be a capitalization support. Accumulating an asset that abandons up to half of its value in one year is not an option.

**Bitcoin could he replace the bolivar? **
If we consider the evolution of the two currencies in the last six months, Bitcoin shows that it is a deposit currency much safer than the bolivar. However Bitcoin's instability in the short term is a difficulty. This instability depends on several factors; Bitcoin is a young currency, its mass capitalized in Venezuela is minimal compared to that of the national currency, announcements of regulation or prohibition on the part of some states, can abruptly change the course.

As a result, the bolivar is safer than Bitcoin for daily expenses, while the latter should be preferred as capitlisation support.