Why Venezuelans Are Betting Big on Bitcoin Amid Economic Collapse

As Venezuela's economy continues to crumble under hyperinflation, its citizens are increasingly turning to Bitcoin as a lifeline. Both poor retirees and wealthy business leaders are converting their rapidly devaluing bolivars into Bitcoin online to pay for everything from medication to honeymoons.

The shift towards cryptocurrencies has accelerated as the U.S. reimposes oil sanctions on Venezuela. The state-run oil company PDVSA is planning to increase its use of digital currencies like USDT (Tether) for crude and fuel exports to minimize the risk of sale proceeds being frozen in foreign bank accounts.

The number of Venezuelans using cryptocurrencies has surged, with weekly Bitcoin trading volume reaching significant levels, far higher than in more prosperous neighboring countries. In recent years, millions of Venezuelan migrants have sent substantial amounts in remittances using crypto.

Venezuelan opposition leader Maria Corina Machado has even proposed adopting a national Bitcoin reserve to combat economic instability as adoption of BTC continues to rise.

While Bitcoin is a speculative investment in developed nations, in Venezuela it has become a critical tool for survival in the face of a collapsing economy. As the crisis deepens, expect to see even more Venezuelans seeking refuge in the world of cryptocurrency.

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