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RE: Venezuela, Hyperinflation, and Ethereum

in #venezuela7 years ago

I have been saying something similar. I believe cryptocurreny prices are driven by fiat currencies with the worst inflation rates. People who live in countries where the local currencies are somewhat stable enjoy huge relative increases in the value of their crypto positions.

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I don't think the adquisitive power of Venezuela is high enough to significantly influence the Bitcoin price. It's more a matter of pure survival - they found something that doesn't become worthless in a few months that they can use as a store of value. But when your store of value is so small, you have to take from it to survive in day-to-day life, it also becomes a medium of exchange. 10 years ago, the black market was all about USD. Now, bitcoin is right up there with USD on dolartoday.com. They have a real need and Bitcoin & co solves a real problem.

I would expect some people with wealth are buying a lot of cryptocurriencies in Venezuela, Greece and India. India has enacted very strict currency controls.