The last quarter of 2016 has been great for Bitcoin, with stock market values hovering steadily around $780.08. It’s the third time since February of 2014, when the stock, Bitcoin Price Index (BPI), rose as high as $780.
The highest average price of the stock was back on December 13th, when Bitcoin hit its all time best value of $788.49. Since the stock’s value isn’t moving back and forth; this is very good news for all international trading markets. The sizable increase in the stock has caught the eye of one country in particular.
Venezuela is Switching to Full-time Use of Bitcoin
Due to the economic instability of the Venezuelan Bolivar, the country is now using bitcoin as its full-time currency. Yes, you read it correctly. Venezuelans are using Bitcoin as a standard form of payment, buying and paying for goods and services, no longer considering it as “just” digital currency. This decentralization, follows the increasingly positive upward surge of Bitcoin’s overall performance as a valued commodity.
Venezuela has been struggling with economic woes for awhile now. By switching to Bitcoin full-time, it means that the country can look forward to moving ahead without worrying about the declining Bolivar. The Venezuelan currency is expected to be stripped of all asset value, as the devaluation punctuates a rather steep downward decline. This is how and why Bitcoins are playing a prominent role in the eventual recovery of the Venezuelan inflationary crisis.
Bitcoin could be the answer to overcoming the crippling effects of decentralization. Decentralization just means that the Venezuelan dollar (Bolivar) has lost its value. The country turned to Bitcoins after a failed financial moved by the government there. The Venezuelan government caused the downward spiral when it was decided to removed the highest dollar Bolivar (equivalent to the US hundred dollar bill).
Venezuela is now using Bitcoin for everything from paying weekly salaries to buying goods such as groceries and other shopping items. It should be noted that the Bolivar is still considered the main currency in the country, as Bitcoin hasn’t entirely phased out the use of Venezuelan dollars. However, the demand for Bitcoin is increasing in the domestic market there, as the value is climbing daily and the price is now well over the $200 mark.
The United States Is Keeping An Eye on Bitcoin’s Future
Bitcoin’s popularity is somewhat troubling for the United States. Because, “indirectly” it could mean trouble for the US dollar. No, it isn’t troubling for the US as a super power. As a super power country, the US wields influence and control over certain aspects of unsanctioned, alternative international currencies. For example, in South Africa there’s a small town with its own currency. This currency, the Ora is for “whites only.” The US keeps a watchful eye on alternative currencies.
The “ora” is for political purposes only and surprisingly it’s one of many forms of alternative currency that the US currently monitors. Bitcoins growth is troubling because it could lead others to follow in the footsteps of Venezuela. At this time, Bitcoin is mainly referred to an “online or digital currency.” Venezuela using Bitcoins as standard payment is a bit unorthodox, at the moment. That might be changing soon.
In the US, the Department of Treasury is fearful about Bitcoin’s future. Because in time, alternative currencies could erode the value of the US dollar. Which could open multiple gateways for illegal, international crimes. We’re talking about seeing an increase in terrorist attacks, human trafficking, illegal drugs and money laundering.