A few days ago, a report regarding Venezuela’s economic condition out. And according to that report, Venezuela was one of those countries which have the worst-performing economies in the world. The report further stated that the economic crisis in the country became the reason for people to use bitcoin and cryptocurrencies. But recently, Peter McCormack, a popular crypto influencer, went to Venezuela and did research on the use of cryptocurrencies there. McCormack during his research found out, that people in Venezuela were not using cryptocurrencies for trading.
Majority of the population is poor. They will take any free money:
They will convert them to dollars ASAP.
Bitcoin and shitcoins are a terrible MoE here for so many reasons.
The real volume is trading and miners.
— Peter McCormack (@PeterMcCormack) February 13, 2020
Venezuela Facing Economic Crisis
People around the globe have been using Bitcoin to buy something and in a very short span.
Many of the analysts believed that Venezuelans would be using Bitcoins to deal with hyperinflation but McCormack did not agree with them (analysts). According to his (McCormack’s) report, in Venezuela, no one was bothered about Bitcoin or other cryptocurrencies. While explaining his analysis, McCormack stated,
“Most of the Venezuelans are poor and will accept any kind of free money, be it bitcoin, altcoins or the oil-backed petro and they will instantly convert them to US dollars.”
Peter McCormack’s Report
The crypto influencer in his report stated that the Venezuelans were suffering from poverty, therefore, to buy food and basic commodities for themselves, they needed dollars, not the bitcoin. McCormack also mentioned that there were a few people in Venezuela who were able to hold cryptos. The report added that most of the Venezuelans did not have the skills to access technology, therefore, they were more interested in paper money.
The BTC volume is affected by mining and trading in Venezuela, they are the reason its (BTC) rates remained overwhelming. According to the report, these activities are limited to only the wealthy citizens of Venezuela which were very small in percentage.
McCormack in his report has stated that the crypto might become a medium of exchange in Venezuela very soon. But in the future, if the government would continue to impose crippling capital controls on it then things could change.