It could be a lack of transparency or corrupt intentions of the people in charge. Hyperinflation and currency devaluations will always remain major perils of fiat currency. The inflation in Venezuela is so crazy that Venezuela’s annual inflation rate at the end of 2018 was 80,000%. The Venezuelan economy has completely crashed in and the country is slowly heading towards anarchy as the governing body has failed its citizens. The living conditions in Venezuela is so dire that at least 2.7 million people are estimated to have fled Venezuela since 2015. One in 12 Venezuelans is now thought to have left the country in the past three years. In the aforementioned scenario of complete economic chaos, a peer-to-peer transparent digital currency like Bitcoin can serve as a holy grail. One youngster from Venezuela is doing exactly that and using bitcoin for his and his family’s survival.

Carlos Hernández, an economist from Ciudad Guayana explained to The New York Times his strategy to get around the ever increasing inflation rate of the Venezuelan bolívar.

He explains that using bolívars for wealth is a “suicide”.

I don’t own bolívars. I keep all of my money in bitcoin. Keeping it in bolívars would be financial suicide.

However, for day-to-day transactions, the cryptocurrency must be converted to bolívars. Carlos trades his cryptos to bolívars using peer-to-peer platforms. Where you can trade your bitcoins with a multitude of payment options. One of those p2p platforms, Paxful has reported a major surge in visitors since the company vowed to reach the unbanked in Venezuela.

I can’t change too many bitcoins at once, though. The government doesn’t monitor cryptocurrency transactions (yet), but it does monitor transactions in bolívars — and any worth about $50 or more will automatically freeze your account until you can explain to your bank where the funds come from.

Bitcoin saving lives in Venezuela:https://t.co/6xcGBQWQMp — ITBiometrics (@ITBiometrics) February 25, 2019

“Still, you could say that cryptocurrencies have saved our family. I now cover our household’s expenses on my own”, concludes a more reassured Carlos.

In light of these grim events, bitcoin is slowly gaining mainstream attention in Venezuela. The trading volume of bitcoin to Venezuelan bolivars has increased sharply over the last year and the overall trade volume seems to be increasing.

As long as a corrupt central authority is printing money, nations are susceptible to financial problems. Bitcoin could be the answer that solves these problems. Bitcoin is transparent, it can offer a good solution to all these global economic problems.