Stuck in the Cold War Between America and China, Venezuelans Have No Recourse but Bitcoin
By: Sylvain Saurel
Tags: Venezuela, Economics, Finance, Bitcoin, Cryptocurrency

Stuck in the Cold War Between America and China, Venezuelans Have No Recourse but Bitcoin

Image: Adobe Stock

The price of Bitcoin has been recovering since the beginning of August 2021. This is the green that gives hope to all those who were shaken by the Bitcoin price crash of May 2021.

It doesn’t take much for some people to lose their faith in the Bitcoin revolution.

These people probably still don’t understand why Bitcoin exists. In fact, they cannot understand why the success of the Bitcoin revolution is essential for the world of the future.

Many of these people live in the West and therefore do not have to deal with the problems that Bitcoin addresses with its people-owned system.

The Venezuelan authorities devalue once again the local currency the bolivar

In Venezuela, the situation is completely different. Millions of people are suffering the full brunt of the current system’s shortcomings. This has been going on for many years, and it continues to get worse month after month unfortunately for Venezuelans.

The latest news that has gone almost unnoticed in the Western world is the removal of six zeros from the local currency of Venezuela.

The president of the Venezuelan central bank announced the news at the beginning of August 2021 as if nothing had happened:

“All monetary amounts expressed in national currency will be divided by one million.”

This decision will take effect from October 1, 2021, with the issuance of new currency notes.

The dictatorship of Nicolas Maduro continues to bring the Venezuelan people to their knees

This is something dramatic for millions of Venezuelans who are already living in hell for years under the presidency of Nicolas Maduro. However, Venezuela was until recently a prosperous nation due to its huge oil reserves.

Then, the arrival to power of Nicolas Maduro and the implementation of his socialist policy made the country plunge into the most chaos. The total corruption of the successive Venezuelan governments has caused more than 5 million people to flee to neighboring countries.

Colombia is the first country to receive all these exiles who can no longer survive under the dictatorship of Maduro.

The country’s infrastructure is collapsing, the population lacks water and health is a major problem. Add to this the devastating effects of the COVID-19 pandemic, and you have a fourth year of hyperinflation for Venezuela, which is in eight consecutive years of recession.

Between January and May 2021, prices rose by +265%.

The people trade mainly in US dollars since the bolivar is really worthless. Those who have been able to access Bitcoin can live better in the face of this dire situation.

Venezuelans find themselves caught in the middle of the America-China Cold War

The problem here is that the situation goes beyond Venezuela.

The country is caught in the middle of the cold war between America and China. On the one hand, we have the United States leading a campaign to remove Maduro, increasing the pressure on the country through significant economic sanctions.

The United States continues to refuse to recognize Nicolas Maduro as president of the country. The Americans have even managed to put together a coalition of 60 nations that support opposition leader Juan Guaido as the true president of Venezuela.

They argue that Maduro’s election in 2018 was a disgrace because most of the opposition candidates were banned and could not run freely in the election.

Maduro and Guaido are scheduled to meet during August 2021 in Mexico to try to find a way out of these problems. The dictator Maduro explains that he is ready to negotiate with the opposition, but that the sanctions weakening Venezuela must be lifted by the United States.

In contrast, Guaido wants to use his talks with Maduro to get guarantees for free and fair elections. Unfortunately, the talks may once again lead to nothing concrete, since Maduro will not want to give up his position as head of the country.

The Venezuelan people have no other recourse than to use a neutral and apolitical currency like Bitcoin

Behind him is the anti-American coalition that is taking shape around the world with China, Russia, Iran, and Cuba.

These countries support Nicolas Maduro militarily and internationally. A good way to oppose the American interventionist tendencies all over the world for this front.

Unfortunately, the people of Venezuela are stuck in the middle of this endless cold war.

For them, the essential is obviously elsewhere. They want to stop just surviving and start really living their lives. That’s where Bitcoin changes the game for them. Bitcoin is a neutral, apolitical currency that protects people’s purchasing power from the hyperinflation that is ravaging the country.

So Bitcoin is already a plan A while the bolivar has been worthless for years.

Final Thoughts

The situation that Venezuelans are experiencing is far from unique in the world. Many other citizens around the world also find themselves brought to their knees by an unfair monetary and financial system in the hands of America. Bitcoin gives them a way out to regain control over their lives.

This is something essential that you need to have in mind when studying the Bitcoin system. It is a system that is already changing the lives of millions of people around the world. Bitcoin is already the only real hope for a better life in the future for all these people.

So by buying Bitcoin and becoming a Bitcoin HODLer no matter what, you are supporting a system that will enable these people to change their lives. This is where Bitcoin is totally different from anything we’ve seen before, as it reconciles individual interests with those of the collective.