A prolonged hyperinflation of the Venezuelan bolivar has made it just about unusable. Over the last couple of months, bitcoin has taken control over the country as the primary currency and the citizens have been using the digital currency to buy basic goods, medicine, and other key items.
Patricia Laya, Venezuelan Bureau Chief at Bloomberg, has revealed that the daily limit of country’s ATMs is set at 5,000 bolivars, worth around $0.05. Laya expressed that she had held up 20 minutes in line to get $0.05 in hyperinflated currency worth just about no value.
Because of the deficiency of money and the quick decrease in the valuation of the Venezuelan bolivar, the residents have started to investigate different strategies for payments since the start of 2017. Since the estimation of money has dove and the residents, organizations, and experts have effectively dismissed the cash, the majority of the Venezuelan population has started to opt for alternative forms of money.
Consistently, the fame of bitcoin inside Venezuela has surged, as a rapidly expanding number of individuals have begun to use the digital money as the primary cash, medium of trade, and store of value.
In a meeting with the Associated Press, Venezuelan inhabitant John Villar expressed that he has purchased two plane tickets to Colombia, his better half’s medicine, and paid his workers with bitcoin in the previous month. Villar stated that he plans to keep using bitcoin like the majority of Venezuelans.
“This doesn’t involve politics. This involves survival,” said Villar.
Currently, it is nearly impossible to buy any goods or services with Venezuelan bolivar, given its low value and adoption in the country.
In coming days, Venezuela may become the first country where bitcoin takes over the national currency and becomes country’s main financial system.
But Why Bitcoin, And Not Some Other Currency?
In Venezuela, the majority of the people have lost trust in the government, national bank, and banks. Its currency is almost broken and its esteem has dived to a point where no goods or services can be acquired with it.
Bitcoin is a decentralized and peer to peer currency framework, store of significant value, and a safe haven asset that shows a trustless ecosystem. Anybody inside the system can send and get payments from each other on a shared premise, without the involvement of intermediaries.
In future, bitcoin will probably rise as the real substitute to the declining fiat monetary standards. In the long term, bitcoin could even replace multi-trillion dollar fiat currencies like the US dollar, Japanese yen, and Chinese yuan, if it continues its current development rate and exponential increment in value.
Bunz Trading Zone is a Canadian online trading and barter platform. According to the local paper “The Globe and Mail,” the platform is launching its own cryptocurrency under the name of BTZ. BTZ is pronounced as “bitz” and as it’s reported, BTZ is going to be the first Canadian cryptocurrency to launch to ‘an already-established community’ and will become available to 200,000 users of the company from 9th April.
Bunz Trading Zone
The Bunz community grew rapidly after its launch. Bunz was basically launched as a private Facebook group in 2013 by Emily Bitze (fashion designer) for exchanging unused things with friends and after the launch, it expanded outside Facebook and Toronto. The Bunz website, plus app, were launched two years ago.
According to the Globe and Mail reports, the platform expanded rapidly due to its minimalism and the absence of cash. Though, the currency’s absence based on barter platform, has offered one of the biggest challenges to Bunz as well. Without an exchange of currency, there won’t be an evident income stream.
Bunz Users Will Receive 1,000 BTZ
After this latest cryptocurrency news, the project’s blog showed details that all Bunz users will be receiving 1,000 BTZ respectively, which can be traded for goods and facilities and can be exchanged amid the members of the community. Basically, the 1,000 BTZ will have the value of about ‘three coffees’. Sascha Mojtahedi, who is the CEO Bunz Trading Zone says, that the company has planned a revenue model, however, he refused to say anything about what it is or when it is going to be introduced.
Mojtahedi said that the main purpose of the BTZ launch is to grab the attention of more users to the platform, as he stated:
“You have to be able to reward people with cryptocurrency that they’ve earned as a result of their passive involvement in the network and then enable them to use it with their peers and merchants. It gives us the room to create new models that people may not have thought of.”
Also, at the beginning of this year, known as an e-commerce giant of Japan, Rakuten announced its plans to issue its own cryptocurrency. Hiroshi Mikitani (CEO) said that it’s going to be a borderless currency.
CoinfloorEX is basically a London-based exchange, which was founded back in 2013. On Wednesday, it announced that from next month, it will be launching bitcoin futures contracts by merging with numerous other companies to propose such product to their consumers. This British cryptocurrency exchange’s main focus is to enter the bitcoin futures market.
Unlike its competitors, Coinfloor will be offering substantially firm futures contracts, and according to a wire service report, when the contract will come to an end, the actual asset that is being traded will be delivered and, in this case, it’s bitcoin. Cboe and CME are offering these bitcoin futures contracts and these contracts are cash settled, however, they don’t deliver bitcoin to the owner of the contract.
According to the co-founder of Coinfloor, Mark Lamb, the product was originated because of an extensive demand from some of the exchange’s customers.
Mark Lamb told Reuters (news agency company);
“When you talk to the liquidity providers, they all say the same thing, which is they want a physically delivered futures contract so they can hedge their exposure across exchanges.”
Coinfloor is probably the fifth one in the companies that offer bitcoin futures contracts by joining with following trading platforms;
- CME Group
Cash-settled contracts are being offered by the U.S.-based Cboe and CME, so does the CryptoFacilities, which is based in the UK. The main perception of bitcoin futures is still contentious, as the U.S. CFTC (Commodity Futures Trading Commission) is also announcing that after getting a pushback on the current products, for the futures contracts, it needs to work on a heightened-review-process.
Likewise, more information about the CFTC’s oversight of such products has been also requested by few representatives, as they also noted that the taxpayers have to be protected from manipulation, vicious activities and scams, for the better future of the market.
12 July 2017, Switzerland introduces a new “Bitcoin Watch.”
Bernecker Uhrenwerke associates the digital currency Bitcoin with unique wristwatches, categorized by the new design. This effort is just to utilize the bitcoin community.
Everyone is blown away by the success of bitcoin and other cryptocurrencies. With expansions of numerous transparent and daily new records, they also surprise their major opponents. Bitcoin fans have the opportunity to demonstrate their ethics on daily basis. Now, there is the first Bitcoin watch is available to prove the support for digital currency with elegant design.
“Bitcoin watch” offers in two collections of 4 models each. Moreover, with Swiss company Ronda’s Quartz movement, or, in luxury variety, with 39 well-known Swiss watch maker’s Eterna. Its price is between 260 Euro(quartz) and 3700 Euro (automatic).
This new watch is launch on the inventive platform “Kickstarter.” Whereas, the price of Quartz collection in the restricted publication of 500 pcs at Kickstarter is up to 229 euro and “automatic” collection’s price in limited edition is 2290 euro.
News credit: www.coindesk.com