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Venezuela: Inflation Tops 100,000 Percent, Bitcoin Costs 60M Bolivars

Wilma Woo | Aug 18, 2018 | 21:00

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Venezuela’s currency the Bolivar Fuerte jumped to 9.2 million per dollar and almost 60 million per bitcoin August 18, just two days before a major redenomination cuts five zeros off its value.

Redenomination Looms

As reported by cryptocurrency commentators including Purse.io support head Eduardo Gomez, the bolivar traded unofficially at around 6.7 million VEF per 1 USD August 17, before suddenly depreciating rapidly to 9.2 million.

“Yesterday 1 bitcoin was worth 44 billion bolivars, now it’s at 59 billion,” he noted.

As Bitcoinist recently reported, August saw the bolivar, which is the world’s least-valued currency, extend its increasingly troubled history. Combined with current behavior on Bitcoin markets, the price 00 of the largest cryptocurrency in VEF terms is now doubling every 18 days.

According to Bloomberg’s Cafe Con Leche Index, which tracks the rate of inflation in Venezuela in lieu of official government statistics, a hypothetical coffee now costs 2.5 million VEF – the highest price ever recorded.

This, Bloomberg suggests, puts the annual rate of inflation above 100,000 percent.

Yesterday 1 bitcoin was worth 44 billion bolivars, now it's at 59 billion.

$1 = 6.7 million bolivars yesterday, now it's at 9.2 million in less than 24 hours.

— Eduardo⚡Gómez (@Codiox) August 18, 2018

Calls To Educate Citizens In Bitcoin Use

Corresponding to the devaluation of the bolivar, Bitcoin trading activity in Venezuela is meanwhile setting new records on a weekly basis.

Data from Coin Dance shows that for the seven days ending August 11, P2P trading platform Localbitcoins handled over 20 trillion VEF in volume.

Despite the growth, however, difficulties in educating and allowing Venezuelan nationals access to free trading of cryptocurrency remains a problem. Responding to Gomez, Locha.io developer Randy Brito urged support for his project, which aims to spark “hyperbitcoinization” in Venezuela through a bounty scheme.

In addition, Brito advocated his nonprofit operation Bitcoin Venezuela, which provides remote education and support to Venezuelans wanting to leverage the cryptocurrency’s benefits.

As of press time Saturday, Bitcoin Venezuela gave the price of 1 BTC as around 54 billion VEF.

What do you think about Venezuela’s inflation? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter