Cryptocurrencies have different uses for different people as well as different countries. For some people in the West, it’s a way to remove third-party interference from the control of their money while others see it as a big investment opportunity. In many South American and African countries, cryptocurrencies are a hedge against hyperinflation.
How cryptocurrencies are being looked at in South American countries.
Let’s look at Zimbabwe, a country which experienced one of the greatest hyperinflations in the world where the central bank started issued million-dollar bills to cope with the situation. Fast forward to the South American nation of Venezuela where there is currently a huge economic instability and has taken its impact on the country’s currency and inflation is now the order of the day. South Americans who have lost trust in their governments and central banks are now turning to cryptocurrencies (bitcoin) as a new haven for their wealth.
At least two new cryptocurrency funds have opened in South America this year to help protect the wealth of the rich with funds located abroad. The Venezuelan government itself as showed a rather warm attitude towards cryptocurrencies with the government trying to create a national cryptocurrency.
“Latin America is very volatile” Carlos Mosquera, founder of Solidus Capital was quoted saying. His hedge fund focuses on the top 8 cryptocurrencies and ICO’s. He also added, “cryptocurrencies are turning into a new heaven for these families.”
The inflation in Venezuela is having a very negative effect on the wealth and purchasing power of Venezuelans and as it stands now, one of the only way outs these people have is to run towards cryptocurrencies which are now considered the new asset class and we can expect to see even more South Americans joining the train in the coming months and years as Cryptocurrencies become more popular in these countries.
What do you think about these shifts? Do you think it has a big impact on the industry? Let us know in the comment section below.