ryptocurrencies in Latin America have helped a large percentage of the continent's population, to protect their money from the inflation of the Shift Governments they generate. A great example of the use of cryptocurrencies in Latin America is Venezuela, which has become the country with the most cryptographic transactions generated per day, per month and per year. Surely you wonder why this happens? Do not worry, in this article, we will tell you everything you need to know.
Many experts in the crypto world have agreed that there are several factors, which have forced Venezuelans to adopt cryptocurrencies in their lives since it is the only medium that the Government of Nicolas Maduro cannot control.
The first reason for the incredible use of cryptocurrencies in Venezuela is that they help the population to protect their savings from hyperinflation or economic crisis in which the country is currently going through.
To give you a brief context, in that country, prices are marked every day, every hour, that is, you may be buying your food for the day and, at that moment, the price increases by a certain percentage. Venezuela's inflation in 2020 was 3,000% but, with a pandemic, in between. In these 6 months of the year, it accumulates a total of 330% according to official data, but other finance specialists comment that this number is false.
Another reason why cryptocurrencies in Venezuela are so widely used is for work. Currently, many foreign companies use cryptocurrencies to pay their employees' salaries.
For this reason, Venezuelans, having an unemployment rate and an absurd minimum wage, choose to work as a freelancer, that is, online offering services abroad. In this way, employers pay their salaries or, well, fees to employees through different cryptocurrencies, generally: BTC, ETH, LTC, USDT or BUSD.
The natives of Venezuela transform their crypto into a stable currency (USDT or BUSD) and then convert it into their local currency to buy the necessary goods for eating or leisure activities.
Although, in the cryptographic market there are more than 9,000 tokens, in Venezuela several cryptocurrencies are generally exchanged. In the first place, we have BTC (Bitcoin) which is the first and best-known cryptocurrency in the market and its price is what drives the others. Then, we have ETH (Ethereum), which is the second token with the highest market capitalization behind BTC, unlike the latter, the network transfer costs in ETH are more expensive, but soon, with an update it will be it will reduce and, according to experts, it will reign in the first position of the transfers.
Finally, we have the stablescoin or stable coins in Spanish, which are many, but the most used, are USDT (Thether), BUSD (Binance Stable Coin) or USDC (Stable Coin de CoinBase).
Although, there is not much difference in using one or the other, most Venezuelans prefer stable coins to ensure that no market decline will harm them. Later, to pass them to Venezuelan bolivars, they are usually exchanged in people going to physical exchange houses in Venezuela.
Not being able to deny that cryptocurrencies in Latin America and in the world, came to stay. Either to protect savings or as a payment method, they will be used by a large percentage of the population. Thanks to the great evolution of blockchain technology, thousands of people can enter the system to protect their savings in times of crisis or distrust of their Shift Governments. In addition, its ease of use and speed of purchase, there is no doubt that, in the near future, cryptocurrencies will have another increase like the one we saw last year reaching more people.
In conclusion, there is no doubt that the appearance of cryptocurrencies has helped many countries to protect their money from governments and to change lives completely.