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The last time I tried to look into this, it seems like there are generally three things happening: - Venezuelans using Bitcoin mining as a way to arbitrage the

by paulgb 7y ago

The last time I tried to look into this, it seems like there are generally three things happening: - Venezuelans using Bitcoin mining as a way to arbitrage their subsidized below-market electricity rates into money. - People suggesting Venezuela as a hypothetical case for a flight to cryptocurrencies in a place undergoing hyperinflation. - Bitcoin boosters confusing the two (perhaps deliberately) and claiming on thin evidence that Bitcoin use is widespread in Venezuela. Feel free to correct me if I'm wrong, but I haven't found anything to indicate that real use of Bitcoin is widespread in Venezuela.

rolltiide 7y ago
People in Venezuala wouldnt admit it out of fear And bitcoin transactions can be relayed from any IP address, or used without the internet and broadcasted later, so we wouldn’t be able to know if transactions were originating there Privacy feature undermining our ability to confirm our pre-existing biased, how quaint
mhluongo 7y ago
The Open Money Initiative [0] has done qualitative research to help pin this down- from what I remember of talks they've given, the answer to real usage in Venezuela is somewhere in between. Crypto has certainly been helpful for capital flight, since smuggling eg gold outside the country is quite a bit more difficult to get through customs than a private key seed. [0] - https://www.openmoneyinitiative.org/ https://www.openmoneyinitiative.org/
- mhluongo 7y ago
  Some more details https://twitter.com/LorePach/status/1159459121722097666?s=19 https://twitter.com/LorePach/status/1159459121722097666?s=19
jcranmer 7y ago
I recall seeing a thread sometime ago where someone claimed to be a Venezuelan who was using Bitcoin. I can't find it, but my recollection of the discussion was that a) people in Venezuela are using anything they can get their hands on as hard currency, and b) Bitcoin was one of those things, but it was negligible usage at best.
Legogris 7y ago
Here's a great podcast episode with folks from the Open Money Initiative talking about the reality in Venezuela: https://www.whatbitcoindid.com/podcast/a-bitcoin-reality-check-in-venezuela-with-jill-carlson-alejandro-machado-jamaal-montasser https://www.whatbitcoindid.com/podcast/a-bitcoin-reality-che... IIRC from listening, there are indeed some people who mine and those who use it as a store of value. And some people use it for remittance or as a portable non-hyperinflational asset. But in general, people are not really aware and dismiss it as a scam (it's understandable; even their own president tried to crypto scam them with the Petro).

by paulgb 7y ago

rolltiide 7y ago

People in Venezuala wouldnt admit it out of fear And bitcoin transactions can be relayed from any IP address, or used without the internet and broadcasted later, so we wouldn’t be able to know if transactions were originating there Privacy feature undermining our ability to confirm our pre-existing biased, how quaint

mhluongo 7y ago

The Open Money Initiative [0] has done qualitative research to help pin this down- from what I remember of talks they've given, the answer to real usage in Venezuela is somewhere in between. Crypto has certainly been helpful for capital flight, since smuggling eg gold outside the country is quite a bit more difficult to get through customs than a private key seed. [0] - https://www.openmoneyinitiative.org/ https://www.openmoneyinitiative.org/

mhluongo 7y ago
Some more details https://twitter.com/LorePach/status/1159459121722097666?s=19 https://twitter.com/LorePach/status/1159459121722097666?s=19

jcranmer 7y ago

I recall seeing a thread sometime ago where someone claimed to be a Venezuelan who was using Bitcoin. I can't find it, but my recollection of the discussion was that a) people in Venezuela are using anything they can get their hands on as hard currency, and b) Bitcoin was one of those things, but it was negligible usage at best.

Legogris 7y ago

Here's a great podcast episode with folks from the Open Money Initiative talking about the reality in Venezuela: https://www.whatbitcoindid.com/podcast/a-bitcoin-reality-check-in-venezuela-with-jill-carlson-alejandro-machado-jamaal-montasser https://www.whatbitcoindid.com/podcast/a-bitcoin-reality-che... IIRC from listening, there are indeed some people who mine and those who use it as a store of value. And some people use it for remittance or as a portable non-hyperinflational asset. But in general, people are not really aware and dismiss it as a scam (it's understandable; even their own president tried to crypto scam them with the Petro).