I own a small business in Venezuela. Nothing tech related, but in the food industry.
Bitcoin has been a godsend. We are able to save money again having it as hard currency. I do exchange some of my btc for dollars, using btc to help to make the transaction (Why change it? Because I respect that you shouldn't have on crypto more than you can't afford to lose).
I'm buying small amounts every day (As our currency depreciate every day as well), but it give us the chance to save and is easier and safer than buying usd in cash.
I do understand the benefits have yet to "trickle down" to the regular people (I'm after all, a business owner), but it will trickle down. Our business is safer, I can afford to raise wages and able to plan ahead (As much as you can plan ahead in a country like Venezuela).
Using localbitcoin to buy them. I either send them to a wallet for long term storage or use uphold to change to usd.
I'm only buying in btc "saving money". Local currency (which my business generates) is spent either in supplies, wages, or just living here. I have yet to change some btc back to local currency (Which I might do to make a large purcharse or some emergency), but will probably just change USD cash (it will be easier).
BTC is not being used for small purchases (So no bitcoin to pay for coffee). Is really just used as "store of wealth". Most business could take USD if you want to use it for payment and some even demand USD (car repairs, construction work, that kind of stuff). Most people DO know about bitcoin, but I wouldn't say is mainstream to own it. There's still fear about volatility.
I agree it's a farce. Save from speculators, nobody is going to buy Petro as nobody trust the Venezuelan goverment. It's probably a money laundering scheme.
Maybe the government will try to force it on the population (By making certain things only payable in Petro), but nobody has any reason to invest in Petro as it is now. The next goverment will surely not recognize it and it's value will drop to zero (Maybe even before a new government steps in)
This makes sense, but isn't there going to be upheaval shortly because the government of Venezuela can't print Bitcoin?
On the one hand, I don't see how creating the Petro helps the government any more than printing bolivars, and on the other hand, the fact that they are trying it indicates they are kind of responding in a cargo cult way to Bitcoin, which is a threat because it can't be printed by them.
Assuming ordinary people use Bitcoin that solves their problems in the short run, but what happens politically next? If it is seriously expected that the Petro will capture the cryptocurrency "magic", and that fails, it seems like a crackdown on Bitcoin might happen next.
They might try to crack it down. It will probably go the same way as the crack down of the dollar. Won't work. And is even easier to hide bitcoin that to hide USD cash.
The downside of dealing with local currency is too great, so people are willing to risk being caught dealing with USD or BTC.
Thanks for replying. In my long-ago time living in South America, it was pretty common for people to save money as hard currency. But they'd just do a single exchange, local currency for USD. Could you say more about what makes the two-step through Bitcoin easier and safer than going direct? And have you estimated the extra cost for the extra leg?
Bitcoin has been a godsend. We are able to save money again having it as hard currency. I do exchange some of my btc for dollars, using btc to help to make the transaction (Why change it? Because I respect that you shouldn't have on crypto more than you can't afford to lose).
I'm buying small amounts every day (As our currency depreciate every day as well), but it give us the chance to save and is easier and safer than buying usd in cash.
I do understand the benefits have yet to "trickle down" to the regular people (I'm after all, a business owner), but it will trickle down. Our business is safer, I can afford to raise wages and able to plan ahead (As much as you can plan ahead in a country like Venezuela).