The price of bitcoin against Venezuela’s fiat currency – the Bolivar (Bs), continues to rise even with the spot BTC price taking a hit over the past few days. People living in areas of economic turmoil continue to adopt BTC as a way of escaping rapid inflation and devaluation of their fiat currency. This according to a post on the Bitcoin subreddit on June 30, 2019, from Venezuelan resident who revealed that 1 BTC is now worth more than 88 million Bs.
Rising Bitcoin Price in Venezuela Despite Market Retrace
According to Redditor “WorkingLime,” the local price of bitcoin in Venezuela continues to rise. This price represents a 14 percent increase against the Bolivar in less than a fortnight. The increase in the price of BTC against the Bs is yet another testament of the country’s struggle with hyperinflation.
An excerpt from WorkingLime’s post reads:
“Government issued new Bolivares banknotes. 10,000 Bs, 20,000 Bs and 50,000 Bs. 50,000 Bs are around 8 USD, since the time they announce them and people get them at the banks they have lost 10% of the value. This after 5 zeroes were shaved from the currency less than a year ago and 3 zeroes more 12 years ago. So, it would be 5,000,000,000,000 Bs”
Data from Dólar Satoshi – a platform that provides local BTC prices in different countries in Latin America shows 1 BTC is currently worth around 80 million Bs. This decrease may be due to the current bitcoin price retrace that has seen its global average spot price fall to $11,000 from a 2019 high of $13,900 less than a week ago.
Bitcoin at a Premium Around the Globe
As previously reported by BTCManager, Venezuelans have taken to bitcoin and cryptos in general in the face of a crumbling economy beset by hyperinflation and political instability. On several occasions in 2019 alone, the country has set new bitcoin trading records.
Efforts made by the President Nicolás Maduro-led government to introduce a national cryptocurrency – the Petro, have so far failed to yield any fruit. Instead, the government has turned towards imposing capital control measures with taxes on crypto transactions.
Outside of Venezuela, there have been reports of bitcoin premiums in places like Hong Kong and India. Reports indicate that BTC even hit a $50,000 asking price in Zimbabwe over the weekend.
The government of Zimbabwe banned cryptocurrencies back in 2018 making it difficult for people to acquire virtual currencies in the country. In neighboring South Africa, BTC is also selling at a premium of close to $1,000 above the market average.