Bitcoin has become the last straw for Venezuelans, even food depends on Bitcoin

Venezuelans are searching for alternative assets and stores of value to solve their daily lives amid a worsening economic crisis and financial turmoil. Physical assets such as gold are heavily regulated, which has led to a surge in demand for Bitcoin in the struggling country.

The number of children dying of hunger in Venezuela is increasing, military personnel in some areas have even begun to resort to force to smuggle food into the country, and residents are struggling to obtain basic necessities such as medicine.

In December 2016, The New York Times published an in-depth report on Venezuela’s devastating financial and economic situation, including Nicholas Casey’s “Starving Venezuelans Flee Financial Collapse by Boat,” which accurately demonstrated the collapse of the country’s economic and monetary system.

The Associated Press just released a report describing how severe cash shortages have left people unable to buy enough food and medicine to support their families, so people are migrating across the border into Colombia by boat, and military personnel are smuggling food into the country to sell to hungry people.

People turn to Bitcoin

The Bitcoin market in Venezuela is not very large. Due to its current poor financial situation, the country only accounts for a small portion of the global Bitcoin exchange market.

However, more and more people are turning to Bitcoin in an attempt to gain access to a currency that has real-world value and can be exchanged for basic necessities.

Individuals ranging from students to business owners have reported successfully mining bitcoin and using it to purchase goods, such as food and medicine, on online marketplaces that accept bitcoin. Some students are using bitcoin service providers, such as Purse.io, to order groceries on Amazon.

Some media also reported that in Venezuela, Google searches for the keyword "Bitcoin" have increased by 400% in the past few months, as people look for alternative currencies or assets to support their lives.

Considering the current financial trends in Venezuela, a currency like Bitcoin could replace national currencies, which are now worth little. Decentralized currencies do not require permission from government agencies to settle transactions and can be paid directly between each other.