Inflation rate reaches 1800%, Venezuela's economy collapses, Bitcoin saves people from starvation

On May 24, a cryptocurrency enthusiast revealed in a post that Bitcoin saved his parents and sister from starvation. The American resident said that his family lives in Venezuela, and it was Bitcoin that gave them the opportunity to buy food and pay bills during the economic collapse.

Financial freedom brought by Bitcoin

There have been many reports of people living in Venezuela using Bitcoin to hedge against the country's economic turmoil. Venezuelans have turned to Bitcoin because their own currency, the Bolivar, has depreciated significantly and inflation has exceeded 1,800%. The cryptocurrency enthusiast detailed how Bitcoin saved his family and hopes that the public will understand that the potential of cryptocurrency in this regard is far greater than its circulation value in the black market.

I want to expose the truth and justify the true potential of Bitcoin, which has far more applications than black market transactions.

Bitcoin has been a lifesaver for my family, saving them from starvation and giving them great financial freedom, allowing them to choose to immigrate in the future - thanks to the appreciation of the currency price and its stability (compared to the Venezuelan economy), my family is one of the few lucky ones who can support their community and choose to immigrate to other countries.

No choice

The netizen said that his father lost his job not long ago and his neighbors, even those from the upper class, cannot afford food. He explained that Bitcoin is being abused by criminals in the same way that they use cash for illegal activities.

If you can take a step back, you’ll realize that Bitcoin has far more legitimate use cases than the black market.

In 2014, his family realized the value of Bitcoin, and although they were skeptical about digital currencies, they had no other choice.

The post also mentioned that many people use Bitcoin for underground transactions, aiming to obtain Bolivars or US dollars to buy food and daily necessities. In addition, some Venezuelans use Bitcoin for arbitrage.

Currently, 1 USD is equal to 6,000 Bolivars. Some clever people figured out that they could exchange 1 USD worth of Bitcoin for 4,500 Bolivars, and the difference of 1,500 Bolivars would be their profit. They used the profit to buy goods and ship them to a small town bordering Colombia.

Economic difficulties

The post about how Bitcoin saved the young man's family resonated in the cryptocurrency community, with some Venezuelans subsequently sharing their experiences of how Bitcoin helped them and introducing ways to exchange Bitcoin for dollars or bolivars.

In addition, some netizens from the United States and other regions said that those from "rich" countries should be vigilant, and the economic difficulties in Venezuela today cannot fail to happen in their own countries. In their view, Venezuela, Greece and other countries whose monetary systems are strictly manipulated and centralized are likely to face economic collapse.