Venezuela’s Bolivar Sees 454% Inflation in Q1 as Maduro Hawks the Petro

2 days ago admin2 0
Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

Runaway inflation continues to devalue the Venezuelan Bolivar (VEB), even as the country’s authoritarian government seeks to divert attention from the floundering economy by hawking its “Petro” cryptocurrency.

According to Reuters, prices in Venezuela rose by 454 percent during the first quarter of 2018 and have swelled by 8,900 percent over the past 12 months.

Those numbers are from the opposition-controlled National Assembly and are largely in line with estimates from independent economists. Venezuela’s central bank, meanwhile, has not published official inflation data in more than two years.

This hyperinflation has left Venezuela on the brink of economic collapse, and residents are fleeing the country at an estimated rate of 5,000 migrants per day. By the end of the year, more than five percent of the country’s population — or 1.8 million people — will have left Venezuela.

But rather than address these problems, the government of what was once Latin America’s wealthiest country instead continues to sing the praises of the Petro, its new state-backed cryptocurrency.

President Nicolas Maduro has declared the Petro to be legal tender, and he has claimed that its initial coin offering (ICO) has raised more than $5 billion from investors across the globe. It even received the “Satoshi Nakamoto Prize” from the Russian Cryptocurrency and Blockchain Association, an award it received for reasons that are dubious at best.

Notably, though, the legislature has declared the Petro to be illegal, and many analysts continue to doubt that it actually exists.

But even as Maduro touts the Petro as the solution for all of Venezuela’s ills, the country’s residents are turning to another cryptocurrency to secure their wealth amidst the turbulent economic backdrop: Bitcoin.

venezuelaVEB/BTC Weekly Trading Volume | Source: CoinDance

Data from peer-to-peer (P2P) cryptocurrency trading platform LocalBitcoins shows that VEB/BTC trading volume has steadily increased throughout 2018. During the second week of April, that trading pair saw 645 BTC in volume, which works out to roughly $5.1 million at the present exchange rate.

Featured image from Shutterstock.

Follow us on Telegram.

Advertisement

Related Posts

Cryptocurrency Market Rebounds Within 24 Hours, Ethereum, Bitcoin Cash, Litecoin Rally

admin2 4 months ago
Advertisement Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. Within merely 24 hours after experiencing a major correction during which every single cryptocurrency in... Read More

Tether (USDT) to Launch New Platform in Wake of Alleged November Hack

admin2 4 months ago
Advertisement Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. The developers of Tether have said that they will launch a new platform for the... Read More

‘We Need an International Discussion on Cryptocurrencies’: OECD’s Medcraft

admin2 4 weeks ago
Advertisement Join our community of 10 000 traders on Hacked.com for just $39 per month. Greg Medcraft, Director of the Directorate for Financial and Enterprise Affairs of the OECD,... Read More

Bitcoin Records 7% Increase as Cryptocurrency Market Rebounds From Yesterday’s Losses

admin2 3 weeks ago
Advertisement Join our community of 10 000 traders on Hacked.com for just $39 per month. After dipping below $6,500, the price of bitcoin has increased 7 percent to $7,100,... Read More

Leave a comment.