Venezuela is ready for bitcoinization
Venezuela was a pioneer in bitcoinization, but historically had to row against the tide. Now it has the necessary know-how
The biggest barrier to Bitcoin adoption is education. Understanding Bitcoin takes time. First, because no one teaches us what it is – and, moreover, what money should be –. And, secondly, because one must become familiar with new words and technical tools like wallets, private keys, addresses, etc.
Naturally, this generates resistance. Until you need it. Venezuela, out of necessity, has been forced to learn and has laid the foundations for its bitcoinization.
The pioneers of Bitcoin in Venezuela
In Venezuela, there were mining farms since 2012, perhaps even earlier. The electricity subsidy made it almost free for many to generate BTC. In that same year, the Bitcoin Venezuela Foundation emerged, which was key to bringing together the first enthusiasts.
By 2014, SurBitcoin would be founded, the first exchange in Venezuela, which reached up to 30,000 users at its peak, and which would later cede its leadership to LocalBitcoins, a Finnish p2p platform that had its highest trading volume in Venezuela.
Soon, Bitcoin began to be used by Venezuelans abroad, who sent remittances to family and friends; by employees of foreign companies, who could receive their salary in hard currency; by an emerging generation of traders who arbitraged between the price of bitcoin and the national currency, providing liquidity to the market; by savers who rushed to exchange their inflationary salary in bolívares.