Bitcoin is the world’s most popular digital currency. Many people want it because it allows them to avoid central authorities such as the central bank. As a result of this and other reasons, many governments are reluctant to embrace digital or cryptocurrency currency. Venezuela is one of the world’s leading bitcoin users. It uses bitcoin for investment and day-to-day purchases of goods and services. Many merchants in the country can help with these purchases. Let us know ‘Does Venezuela Accept Bitcoin?’.
Why is Bitcoin so popular and widely accepted?
The following are the reasons for bitcoin’s growing acceptance:
- Hyperinflation
- Capital control
- High unemployment
Hyperinflation
Is referred to as the rapid depreciation of a currency. The Venezuelans adopted cryptocurrency in a bid to cope with the country’s hyperinflation. As a result of the country’s economic crisis, the local Bolivar peso has lost value. Venezuelans, therefore, needed an alternative to the local Bolivar peso. That could serve the purpose of value storage and a medium of exchange. These requirements have resulted in the rapid and widespread adoption of bitcoin in the country. Venezuelans use bitcoin for both daily consumption and investment.
Capital control
Venezuela’s government has restricted Venezuelans’ access to foreign currencies since 2003. The lack of alternatives pushes Venezuela accept bitcoin, allowing individuals to hold them as a store of value and medium of exchange. However, the Venezuelan government has recently permitted the use of dollars. This policy change will not deter the country’s already widespread use of bitcoin and other cryptocurrencies. High unemployment. People are eagerly looking for alternative sources of income due to the country’s high unemployment rate and 98 percent poverty rate. As a result, people in Venezuela trade and mine accept bitcoin for profit. The money earned is then used to buy necessities for daily living.
How to Get Bitcoin in Venezuela?
The purchase of Bitcoin can be made from a variety of reputable and well-regulated brokers, including:
- Binance
- Coinbase
- Coinmama
There are also many Bitcoin ATMs located throughout the country.
The Procedure for Purchasing or Trading Bitcoin
- Broker selection and registration
- Identity verification
- Funds deposit
- Open a short/long position
- Close position
Broker selection and registration
To begin the process of purchasing or trading bitcoin, you must first identify and choose a broker. This will require some preliminary research to determine which broker best meets your needs. Parameters such as regulatory status, level of security, reputation, transaction limit, payment options, and supported currencies typically shape your preference. Once you’ve decided on a broker, simply complete the registration process.
Identity verification
The next step is to verify your identity, which all brokers require. This frequently necessitates the uploading of a national ID card and takes some time to verify. This procedure is required by law to remove criminals, and brokers must follow the Know Your Customer Policy (KYC).
Funds deposit
Following verification, you will need to fund your account to purchase bitcoin. For this purpose, a variety of payment options are usually available. Bank transfers, credit or debit cards, and third-party options such as PayPal are among them. You can choose the best option for you and fund your account.
Open a short-to-long position
After completing all of the preceding steps, you are now ready to trade bitcoin. To purchase bitcoin, you must take a long position. While selling bitcoin, take a short position. It is critical to avoid speculation and instead take a position based on relevant market data.
Close position
To exit a trade, traders must close their position. The process can be carried out manually or automatically by the system. A manual exit involves closing the trade personally, whereas an automatic exit involves the opposite. This can be accomplished through the use of market orders, limit orders, stop-loss orders, and trailing stop orders.
Conclusion
Venezuela’s Bitcoin prospects are promising. Unfortunately, as Venezuela’s economic crisis worsens, more businesses and individuals will turn to cryptocurrencies like Bitcoin for survival. Furthermore, the local bolivar will most likely be unreliable in the medium to long term. The problem is that cryptocurrencies like bitcoin are highly volatile. Additionally, retailers and businesses lack the required infrastructure. As a result, cryptocurrency is not widely accepted by businesses.
However, some businesses in the aviation and food industries have begun to accept cryptocurrencies like bitcoin, Ethereum, and Dash. Simon Bolivar International, Caracas Air, and Turpial Airlines are examples of such aviation companies. Pizza Hut and Burger King are two restaurants that accept bitcoin and other cryptocurrencies. Furthermore, more businesses are likely to join this group of businesses in accepting bitcoin and other cryptocurrencies in the future.
FAQS
- Is it possible to make money by trading bitcoins?
Yes, one can make money by trading bitcoin. However, it necessitates a thorough understanding of the factors influencing the price of bitcoin. It also entails effectively managing trading psychology and developing adequate risk management strategies.
- Could cryptocurrency replace fiat money?
It is difficult to say for a variety of reasons. The first is that cryptocurrency adoption, such as bitcoin, is still very low. In addition, most governments remain skeptical of cryptocurrency, owing to a lack of understanding.
Furthermore, a sudden shift from fiat to crypto currency may have unanticipated consequences. However, as proper education and infrastructure become available, the government may be willing to accept this innovation. But the exact timeframe in which all this will happen is highly uncertain.
