Articles like this should give us pause.. as country after country experiences local currency crashes, will they all move to Bitcoin?
Taken from the AP Wire article, “Venezuelans Seeing Bitcoin Boom as Survival, Not Speculation”
CARACAS, Venezuela — In the last month, John Villar has bought two plane tickets to Colombia, purchased his wife’s medication and paid the employees of his startup business in Venezuela — all in bitcoin.
As Venezuela’s national currency loses value at a catastrophic rate, thousands have begun turning to the world of cryptocurrency to salvage what little value remains from their increasingly worthless bolivars.
“This is not a matter of politics,” Villar said. “This is a matter of survival.”
Both poor Venezuelan retirees and wealthy business leaders are converting their bolivars into bitcoins online and then using the digital currency to pay for everything from doctor appointments and honeymoons to motorcycles and artisanal beer. The transactions are relatively swift for anyone with a smartphone: Websites like LocalBitcoin and Colibit function as exchanges where Venezuelans can buy and sell bitcoins using a local bank account.
>> rest of article <<<
For Villar, the stakes are especially high, and not just for his business. An engineer who once ran a biometrics enterprise, he is staking his financial future on the development of a game involving an alternative cryptocurrency called PepeCash. A dozen employees operate from a small office filled with computers in an industrial community east of the capital. All receive part of their salary in bitcoin. His wife, also an engineer, is now largely bound to a wheelchair.
“At this moment,” he said. “I don’t have a single bolivar.”