Being in charge of your money via Bitcoin has had its advantages, but its a vital lifeline for all –as Carlos has learned.
What could you be bought by a bag full of money?
The country’s economy has been ravaged by hyperinflation for decades, and now people are struggling to pay for a loaf of breadlet alone a full grocery store.
One man, Carlos Hernández, joins many others who have turned into Bitcoin in a bid.
Quickly scouring gloomy supermarket shelves, Carlos was well aware that the bolívars (Venezuela’s money ) in his hand were losing value by the minute.
By the end of 2018, the country’s annual inflation rate had struck a dizzying 80,000 percent. Now, in early 2019, that figure has more than doubled.
Eager let his family go hungry and to not reduce his money, Carlos handed over it to buy the only edible thing in sight: cheese.
However, as the purchasing power of plummets, even suitcases full of cash can buy just large amounts of food.
It’s clear that there is a money needed.
Bitcoin: A permissionless Alternate that is much-needed
If authorities are attentive and honest fiat currencies only operate. When they fail, the nation is thrown into economic crisis and many men and women remain impoverished and unbanked.
Worse still, when such financial crisis happens, money controls often tighten meaning people like Carlos can’t open bank accounts to access alternative currencies, for example U.S. dollars.
This is the area where Bitcoin comes in. As a cryptocurrency that is decentralized, it gives people an option to fiat currencies.
See charts.Bitcoin.com for longer.
So, rather than being forced to utilize a fiat currency that is being crushed by hyperinflation, during economic catastrophe, individuals are able to take their savings into their own hands by storing it in Bitcoin.
Carlos, for instance, stores his money in Bitcoin instead of bolívars, just exchanging it needs cash to buy food or other supplies. That way, his savings are a lot more stable.
When control counts
As we have researched, beneath perks such as transactions and no lender fees, Bitcoin includes a larger potential: it can improve the lives of these in economic turmoil.
In these instances, it becomes quite apparent that controlling your money through Bitcoin is empowering.
In fact, as more people realize this potential after feeling the growing pressure of hyperinflation, the demand for a currency like Bitcoin will only increase.
Bringing Bitcoin to those in emergency
In Bitcoin.com, we’re trying to encourage those affected by Venezuela’s crisis.
Going a step further than simply using Bitcoin as a store of value, we help merchants to take Bitcoin Cash (BCH) payments from their clients.
This lets their money is spent by people like Carlos without having to change it into bolívars.
Bitcoin.com COO Mate Tokay explains Venezuela’s financial crisis and how Bitcoin Cash (BCH) will help.
In addition, we support other causes a charity which works as a system, like EatBCH.
Although you don’t have any Bitcoin but still need to contribute, you can get started by downloading a pocket and then buying some Bitcoin straight from us.