On the morning of yesterday there was a protest of users on the LocalBitcoins platform, not precisely because of the terms of use of the platform or any other related issue.
In the Venezuelan market, merchants placed messages alluding to their dissatisfaction in bitcoin sales announcements, requiring the same community of traders to increase BTC prices until they reached the global equivalent in bolivars, the local currency.
Thus, some argued that the real price was 22 billion bolivars per unit and that those who sold below this average were "giving away" the bitcoins. Others affirmed that the intention of the Venezuelan government was to lower the prices of the cryptocurrency in the regional market.
In keeping with this situation, it should be recalled that the Venezuelan government announced that it would be investigating the bank accounts of bitcoin merchants because the global price of the cryptocurrency is used to calculate the unofficial value of foreign fiduciary currencies, such as the dollar. and the euro.
In recent reports, it was learned that the Minister of Popular Power for Industries and National Production of Venezuela, Tareck El Aissami, declared on national television the tracking and tracking measures to the national bank accounts that trade with cryptocurrencies, to combat speculation and Intentional "distortion" of the cryptocurrency and currency market.
Although those traders called "speculators" are the rejection of governments and customers of the exchange market for allegedly manipulating prices and play to obtain the highest profit of a product, the truth is that the reality is very different from that narrative .
"Especular" comes from the Latin speculor; According to Wiktionary, observe carefully, examine, explore. As we know, words are adopting new meanings with the passage of history. Currently, speculation refers to theorizing or supposing an event without certainty. But what is not usually accepted is the fact that humans speculate more frequently than is believed.
An example, applied to the field of economy or consumption would be, at the time of shopping, ask how much tomato, cheese, bacon and flour would need to make a pizza at home. At the financial level, there is also speculation about the data that would make a more profitable and quick return investment, or about the factors that would allow a borrower to pay on time or not, which would undoubtedly determine the most basic decisions and elementary to favor the fulfillment of an objective.
But also, and extremely important, we find the fact that the real value of a product is an abstraction, a relative and subjective factor. To solve this inconsistency, the seller and the buyer speculate, analyze what the benefits of their exchange should be based on their financial, budgetary, and accounting conditions, and making the relationship between the price from which the seller can not lower and the price that the buyer can not exceed, we have the price of a product.
In the case of professional investors, speculators by nature, and those who tend to take the habit of governments and consumers alike, they base their work on buying or acquiring an asset when its price is cheaper, as long as they have the expectation of that its price will increase in a certain period of time and at that moment, when it is speculated that it can not increase more, sell. They are direct contributors to the dynamics of prices and values, but allow investors of other assets to make equivalences and calculations in different parts of the world and in this way, the prices of products are much more justified between geographical or structurally distant places. .
As financial markets facilitate the exchange of values, cryptocurrencies have come to facilitate the exchange of values, goods and services in a more accessible, generalized, massive, democratic way, because they are easily accessible. You do not have to be a professional investor, get to buy the bonds of the debt of a failed state or have connections in the companies that provide privileged information to predict the market, but anyone with an internet connection can perform transactions processed and registered in a blockchain (it gets better) for the amount that suits you. That is, if we want to make a small payment of 2 dollars, this transaction can be done without inconvenience and without having to pay high commissions, in many cases, to a third party to approve it. And there is still a short distance to reach the full functionality of Lightning Network in Bitcoin, a protocol that will allow payments of just pennies very quickly.
For that reason, due to the current state of the economy in Venezuela, which represents difficulties for citizens facing an inflationary scenario, regulations for the acquisition and exchange of foreign currencies such as the dollar and the euro, Venezuelans trade weekly on average more than 500 BTC, according to CoinDance, a huge sum compared to other countries in the region such as Colombia and Argentina, the latter a country where its inhabitants also seek to protect their capital by trading with bitcoins.
Finally, it is worth mentioning that although cryptocurrencies and blockchain technology seem to have the potential to completely displace institutions and financial entities of all types in the coming years, this is far from the absolute truth, since regulators Traditional institutions can also be participants and help enormously not only to their adoption, but also to their correct implementation.
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This is a really great article, that definitely show the deep underlying structures, that work for/against any cryptorelated project. It highlights the situation of dealing with cryptocurrencies, and the risks the exchanges have to take, of the government seizing funds of "speculators" that simply tried to provide a more easy and convenient access to cryptocurrencies.
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