A New High for an Old Currency
The chatter around the Venezuelan bolivar and Bitcoin (BTC) has reached new decibel levels recently. In a week that could make headline writers salivate, the trading volume of bolivars on the LocalBitcoins platform soared to an astonishing 209 billion. Yep, you read that right—209 billion bolivars exchanged for Bitcoin during the week ending December 14. This surge screams “Hyperinflation Alert” more than a toddler at a candy shop.
Breaking Records Like It’s December
The locals shouldn’t be too surprised by this boom in trading; December has been a month of record-breaking statistics. Coin Dance, a Bitcoin statistics heavyweight, reported that the week prior also set the stage for this crescendo, with volumes climbing past the previous benchmark of 205 billion. It’s like the bolivar is on a rollercoaster ride, minus the safety harness.
Bitcoin’s Flaccid Performance
Here’s where the plot thickens: while the bolivar’s volume is doing the cha-cha, the actual Bitcoin traded is taking a nap in the corner. After reaching the dizzying heights of 2,000 BTC back in February 2019, the numbers have dribbled down to a yearly low of 433 BTC in July. Fast forward to December 14, and only 637 BTC traded hands, translating to $4.4 million worth of bolivars. It’s as if Bitcoin’s the life of the party but forgot its wallet!
Petro—The Crypto Everyone Loves to Hate
As if this hot mess of currencies wasn’t enough, Venezuela continues to promote its own oil-pegged cryptocurrency, the Petro (PTR). Oh yes, nothing screams ‘trust me’ more than a government-backed coin that once claimed to be backed by 5 billion barrels of crude oil but now sits at a glorious 30 million. This week, President Nicolas Maduro announced that retirees and government employees will receive half a Petro as a Christmas bonus. Talk about a stocking stuffer that hits differently.
What Does This Mean for Venezuelans?
The rise in bolivar trading against Bitcoin is not just a number; it reflects the stark reality of an economy battered by hyperinflation. For many Venezuelans, trading Bitcoin is not just an investment opportunity but a means of survival amid financial chaos. Whether it’s maintaining wealth or simply buying groceries, the struggle with bolivars has become a dance of desperation.
