Hyperinflation is an enormous concern in some international locations of the world. Hyperinflation is a result of extreme cash supply not comparable with the gross domestic product (GDP) of a country. The result’s extreme cash supply leading to a rise in costs as the cash loses its worth.
Venezuela is one such nation going through this problem. There may be hyperinflation and costs are ridiculous. One lunch can value no less than 200,000 Bolivars which is the same as simply $8 to $10.
The nation has free electrical energy and resulting from this, the locals are eager about Bitcoin mining. Because of this, there’s an active neighbourhood concerned in Bitcoin buying and selling within the nation. Because of hyperinflation, as a substitute of carrying a pile of money, the locals have begun counting on Bitcoins to pay for his or her everyday actions, for instance, shopping for lunch.
Daniel Osorio of Andean Capital Advisors on CNBC whereas interview hinted that the nation could quickly ‘Bitcoinize’ utterly. He stated,
“We may well be witnessing the first ‘Bitcoinization’ of a sovereign state.”
Dubai, Sweden, and India are among the many international locations exploring blockchain and cryptocurrencies for his or her respective economies.