Venezuela: First Bitcoin ATM Incoming amid Failing Economy and Sullen Petro
In a country that many believe proves how fiat currencies can destroy an entire country’s infrastructure and economy, the first Bitcoin ATM in Venezuela will finally be installed, about two weeks from January 20, 2019.
A Never-Ending Economic Crisis
Venezuela actually tops the misery index thanks to the ongoing economic crisis in the country since 2013. There are all sorts of factors that have contributed to the situation, and the country’s currency is hyperinflating at an alarming rate.
The economic issues affecting the country have officially turned into a humanitarian crisis, and seven percent of the Venezuelan population has fled the country. As a result, it has also turned into a children starvation issue.
Since the fiat currency has decreased in value by such a tremendous amount, many have wondered about which cryptocurrency might gain popularity in Venezuela, as it may provide a more secure and stable form of payments between individuals and businesses.
Many cryptocurrency enthusiasts were conflicted about the fact that Venezuela’s president, Nicolas Maduro had unveiled the “petro” cryptocurrency in February 2018, backed by oil reserves. Many believed that there was evidence that the entire concept was a complete scam.
(Source: Coin ATM Radar)
Steve H. Hanke, a professor of applied economics at the esteemed Johns Hopkins University, claimed that there was a lot to be skeptical about. He stated succinctly, “the problem with the petro is it’s a scam, and it doesn’t even trade.”
Maduro has attempted to hype up the cryptocurrency, claiming that it could singlehandedly reverse the country’s economic downturn.
About the ATM
In about two weeks, the country will welcome its first Bitcoin ATM thanks to Cryptobuyer, a Panama-based company. This comes just as LocalBitcoins is reportedly no longer accessible within Venezuela. The ATM will be located in Caracas, the capital of the country.
The amount of Bitcoin ATMs is steadily increasing year by year. There are now over 4,000 machines globally, and the sector is booming. The CEO and founder of RockitCoin, a crypto ATM company, has recently stated:
“We are strategically expanding our network to meet demand. We are looking to double in size through new machine placements and acquisitions.”