4 ms·

I'm in Venezuela and unfortunately I've never heard anyone talking about Bitcoin here.I haven't really looked hard,to be honest. Dollar purchases are totally p

by rafaelm 13y ago

I'm in Venezuela and unfortunately I've never heard anyone talking about Bitcoin here.I haven't really looked hard,to be honest. Dollar purchases are totally prohibited here , we only get $400/year for online purchases and ~$2500 for travellers. The black market here is just out of control, like you said, just today a friend sold $1000 at Bs.32. The Government only gives dollars at the official rate (Bs.6.3) to their close friends (corruption). Venezuela does not produce anything other than oil. So , everything we consume here is imported (food,clothing,etc). If you are in commerce and need to import something, you go to the black market. And that explains why the projected inflation for this year is ~45 - 50%. Argentina already suffered hyper-inflation not too long ago. I cannot understand why they did not learn from their mistakes.

aortega 13y ago
Well, because of course it was not a mistake. Inflation is a way to transfer wealth from the general population to the guys with the printing press (The gov friends). The only way to escape this trap is to save money in a hard currency, for example the dol...wait a minute...
- rafaelm 13y ago
  Talk about govt friends. The govt friends here are the only ones that get dollars at the official rate. They are supposed to be importing food, medicine, electronics,etc. They ask for $1mill from the govt for importing 1000 refrigerators at $1000 each. They get them at Bs.6.3 so they have to pay Bs.6.300.000 for the $1mm They import only 500 refrigerators and bribe everyone from the national guard, customs officers,etc. to say they imported 1000 refrigerators, paying their supplier only $500.000. They sell the 500 refrigerators at Bs.15 per dollar, keep the rest of the $500.000 outside of Venezuela and then sell enough of them at the black market rate of Bs.35 to buy the next $1mm at the official market rate. Then they ask for more dollars from the government. And the cycle continues. Multiply this by a LOT more. Almost every govt official is in on it and it has produced a ton of multi-millionaires.

by rafaelm 13y ago

aortega 13y ago

Well, because of course it was not a mistake. Inflation is a way to transfer wealth from the general population to the guys with the printing press (The gov friends). The only way to escape this trap is to save money in a hard currency, for example the dol...wait a minute...

rafaelm 13y ago
Talk about govt friends. The govt friends here are the only ones that get dollars at the official rate. They are supposed to be importing food, medicine, electronics,etc. They ask for $1mill from the govt for importing 1000 refrigerators at $1000 each. They get them at Bs.6.3 so they have to pay Bs.6.300.000 for the $1mm They import only 500 refrigerators and bribe everyone from the national guard, customs officers,etc. to say they imported 1000 refrigerators, paying their supplier only $500.000. They sell the 500 refrigerators at Bs.15 per dollar, keep the rest of the $500.000 outside of Venezuela and then sell enough of them at the black market rate of Bs.35 to buy the next $1mm at the official market rate. Then they ask for more dollars from the government. And the cycle continues. Multiply this by a LOT more. Almost every govt official is in on it and it has produced a ton of multi-millionaires.