How Venezuela is Preparing for a Bitcoin Future
Venezuela has had the world’s eyes as they begin to prepare for a bitcoin-based future. While trying to remain at a stance that does not show political motives, Venezuela has stated that the government will begin to use the currency given the massive inflation they have faced with their own internal fiat-currency.
The country has not come out with any official reports for unemployment since last year in April. The estimates for the country’s unemployment rate remains incredibly high, but that does not even represent the largest issue that they are facing. The few people that do have jobs, are being paid in a currency that has inflated over 700% year-over-year. This essentially means that they are being paid nothing.
So what effect would it have on the country if they began to use bitcoin as their primary currency? According to a story published on bitcoin.com, some citizens of the country have realized that they can earn more money playing the online game Runescape, than in any other more traditional jobs. The players mine “Runescape Gold” and then take their earnings in Bitcoin. Some estimates show that this has the ability to earn the players anywhere from $0.50 to $2.50 per hour.
This is just one of many examples of the country finding ways to incorporate bitcoin. The next few years present an interesting challenge, as Venezuela becomes one of the first country’s to show what occurs when inflation and an economy in shambles, is trumped by a worldwide cryptocurrency. Given the nature of the industry being so new, no one has experienced this up until this point. It will be interesting to see what happens to the country and hopefully how bitcoin can benefit the people who need it most.