Bitcoin surges in Venezuela, is now a good time to buy?

Countries lacking access to reliable financial systems are increasingly finding aid within Bitcoin and other cryptocurrencies as a means of economic liberation. OTC platforms like CoinCola offer a fast and easy way to buy and sell Bitcoin, as well as other altcoins.

Physical version of Bitcoin (new virtual money) and Venezuela Flag. Conceptual image for investors in cryptocurrency and Blockchain Technology in Venezuela.

 

Venezuela, in the face of an economy in freefall, mass unemployment and medicine shortages, has seen an exponential rise in cryptocurrencies like Bitcoin and Dash as the Bolivar suffers from hyperinflation.

Despite bear market conditions, Bitcoin continues to float large volumes on cryptocurrency OTC platforms and exchanges as it begins to substitute the local currency as a means of storing and exchanging capital.

With the government’s inability to control or influence its value, Bitcoin has become a safe haven for its stability and applicability with an increasing number of Venezuelan vendors accepting cryptocurrency payments.

The Bitcoin Diaspora Expands

During September 2017 Bitcoin gripped global news headlines because of its instant rise in value.

 

The inherent value of cryptocurrency and the technology behind it hit mainstream audiences – the limited supply of 21 million bitcoins (with 17 million already in circulation) and it’s decentralized nature making it reasonably resistant to internal geo-political factors.

In September 2017 Bitcoin was trading at just over $3,800, by December prices reached an eye watering $19,343. Those who got in early saw a 409% return on investment in just three months.

Is now a good time to buy?

With the lack of a crystal ball at our disposal, there are many indicators giving us a probable trajectory of Bitcoin and other cryptocurrencies.

Demand has soared because cryptocurrencies provide real world applicability and utility, with a variety of currencies solving a wide range of complex issues.

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Dash coin for instance, can be used for near instant payments with extremely low transaction fees. According to the Dash core group, over 200 merchants each month sign up to accept Dash in Venezuela and over 100,000 wallets have been downloaded within the country.

But not only are cryptocurrencies a means of storing and exchanging value, they also provide an ample means to create value for the estimated 10 million unemployed citizens.

With some of the lowest electricity costs in the world, US electricity supplier Crescent Electric determined that over 115 countries, Venezuela was the cheapest nation to mine Bitcoin, at $531 per bitcoin, compared to $4758 in the United States.

How to buy bitcoin?

As use cases expand and demand grows, competition arises, bringing lower fees and innovation to the market. Hong Kong-based CoinCola has recently moved into the Venezuelan market and proposes to increase adoption by bringing accessibility to trading.

 

Specializing in secure and low cost trading, the firm has had success in the Asian market with its integrated peer-to-peer over the counter (OTC) and crypto-to-crypto exchange platforms. CoinCola also offers a free web wallet to securely store and manage your digital assets.

For specific demand in Venezuela, CoinCola has established a partnership with Dash which will see the Dash coin listed on the OTC platform. For their promotional launch in the country, CoinCola is offering free Dash transactions. And with competitors taking 1% trade fees, CoinCola offers 0% OTC trading, a discounted 0.5% for advertised OTC trades and 0.2% for the crypto-to-crypto pair trading.

 

In addition Bitcoin and Dash, CoinCola’s growing list of coins includes Ethereum, Tether, Bitcoin Cash and Litecoin.

 

Further promotional deals include a Refer a Friend program where Venezuelan traders can earn 50% commission for each trade.

 

Cryptocurrency in Venezuelan has proven to be beneficial for the growing number of adopters within the country. Its stability through decentralization and utility through trading and purchasing could make it the most sought after asset in South America.

 

 

Disclaimer: This content does not necessarily represent the views of IWB.

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