When the internet was first made available to the people, they were in awe and came up with many ways of using it in different sectors. Same happened with the introduction of the blockchain technology. One of the most popular and used creations of the blockchain technology is Bitcoins.
Experts and researchers are now studying its impact on the world and how it can be used to bring changes, not just in the present times, but in future also.
A new study published by the Human Rights Foundation Chief Strategy Officer, the use of Bitcoin can assist about 4 billion population residing across the regions which are under authoritarian controls. However, the study also said that there are countries which are under dictatorial control but are still open to new technologies, like Venezuela.
In fact, as per the information shared by a Helsinki based crypto startup Localbitcoins, people of this impoverished Latin American country are buying bitcoins like they have been the part of their life forever.
Not just Venezuela, but Colombia seems to be following the same path. The study guesses that it is happening as people are witnessing Venezuelans earning enough and leaving their country to reside in better countries. There are chances that the President would plead them to return to the country; but, with the present uncertain environment in the country, it might not work.
Assets which are volatile and losing 80% of their value year by year are indeed not the option to consider. But, when the currency of your own country is falling by 95% (day by day), even uncertain and volatile assets like Bitcoin would sound more reliable.
As per the report by the International Monetary Fund (IMF), Venezuelan inflation will be one million percent by the end of this year. People in the US are going crazy just by the decision of Fed hiking interest rate by a fraction of the percentage, but in Venezuela, the population is about to witness a situation when the inflation is one million percent.
While discussing with a Bitcoin economist, the Spectator’s Business Editor said:
Venezuelans love Bitcoin, most probably because of the situation in their country. But, it is not just Venezuela who is loving Bitcoin and adopting it. Bitcoin appears like a safe investment for the people in authoritarian countries.
In the case of Zimbabwe, its leader Robert Mugabe has printed so much fiat currency that the wealth of the citizens’ of Zimbabwe lost its value. People had to load trucks full of fiat money to purchase groceries.
Countries like Iran and China, citizens, can use cryptocurrencies to elude the government censorship and to avoid their transactions getting scanned under a magnifying glass.