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I agree with (some of) your original post in that Venezuela is an ailing nation at best, but at the same time, it shouldn't take too much imagination to see tha
by bmelton 9y ago
I agree with (some of) your original post in that Venezuela is an ailing nation at best, but at the same time, it shouldn't take too much imagination to see that if you can convert cheap (in Bolivars) electricity into currency that is accepted at a much better exchange rate outside of the country that one can have supplies shipped in.
Moreover, we know that in currency crises, black and gray markets spring up like wildfire, so it takes even less imagination to picture a proprietor starting to prefer crypto currencies in exchange for tangible goods vs. the already bad -- and more importantly, still declining local currency.
Despite the volatility of crypto currencies, and the fact that they've been on a hard slide lately, it's still a better depreciation than hanging on to Bolivars.