It goes without saying the economic situation in Venezuela is anything but reassuring right now. The country has been plagued by food shortages and economic mismanagement, causing significant inflation. Experts predict inflation rates will soar to 1,600% in 2017, which is insane. But at the same time, this could be a turning point for Bitcoin.
Living in Venezuela these days is not something to look forward to. Inflation is a very dangerous situation for any economy in the world. Thankfully, the majority of countries around the world are only facing minimal inflation, albeit it is a pain in the rest to get rid of that situation as well.
Venezuela, on the other hand, is going through its worst inflation period in history. New research by the International Monetary Fund is not helping much either, as they predict a 1,640% inflation throughout 2017. For those who thought this year’s 480% was worrying, more trouble is ahead by the look of things.
This situation is affecting all aspects of daily life in the country. Food shortages, making it difficult to obtain medical supplies, and rampant theft is all daily routine in Venezuela right now. Things have gotten so dire the military is forced to guard grocery stores right now. If this trend continues, the IMF will have to bail out the country in the next few months.
Until a solution is found, the military is gaining even more power in Venezuela right now. Control of food stocks has been turned over to the armed forces. To make matters worse, it is doubtful the IMF will help the country, as the Venezuelan government cut ties with the IMF several years ago.
All of this turmoil is creating an invaluable opportunity for Bitcoin adoption throughout Venezuela. Before the Bolivar declines even further, any savings should be put into an investment vehicle that will ward against fiat currency inflation. Bitcoin presents an exciting opportunity in this regard, and it can be converted to Bolivar if needed. That being said, this situation is no guarantee for massive Bitcoin adoption in Venezuela all of a sudden.
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