"Bitcoin Saved My Life..."

Authored by Joe Withrow via InternationalMan.com,

Eli’s mother was dying from cancer.

Eli is 33 years old. He owns a shoe store in Caracas, Venezuela. His mother has bone cancer.

Venezuela’s currency is the bolivar. It lost 62% of its purchasing power in February. (It lost 67% the month before that.)

That means prices for everything (food, water, and utilities) increased 62% over a month.

Eli couldn’t afford his mom’s medication. So he turned to bitcoin.

You see, Venezuela has capital controls on traditional safe havens like the U.S. dollar (more on that in a moment). That makes it hard for Eli to buy them.

So he buys bitcoins and sells them to a friend in Colombia - who won’t accept bolivars. The friend then buys cancer treatment and medical supplies for Eli.

Said Eli…

Treating my mother’s cancer would have been very difficult without using bitcoins because my business is going bankrupt and I have a lot of debts, so bitcoins enabled me to stay afloat while our currency is collapsing.

Eli’s not the only Venezuelan using bitcoin to survive.

Arley is from the Táchira state on the border with Colombia. He said he buys drugs in Colombia with bitcoins… then resells them after legally importing them to Venezuela.

Things have gotten so bad that authorities are investigating the theft of zoo animals in the Venezuelan state of Zulia. Police believe people are stealing the animals and eating them. It’s another sign of hunger in a country struggling with chronic food shortages.

As you probably know, Venezuela is on the verge of collapse.

President Nicolás Maduro’s socialist government has eroded 99% of the bolivar’s value. That has created a humanitarian crisis.

Today, I want to show you how Venezuelans are fighting back—using bitcoin.

A Worthless Currency

Venezuela has the highest inflation rate in the world at 741%. The Venezuelan bolivar is basically worthless. You can’t even buy a loaf of bread with a wheelbarrow full of them.

So it’s no surprise that Venezuelans are looking for alternative currencies. And the U.S. dollar is one of their favorites.

But the government has tight controls on currency exchanges. It restricts the number of dollars people can buy… and what they can do with them.

The government-controlled exchanges have created a black market for U.S. dollars.

In 2014, you needed 6.25 bolivars to get $1 on the black market. Today, using the black-market rate, you need 16,000 bolivars to get that same $1.

The rising cost of black-market dollars—and tight government controls on their purchase—has pushed Venezuelans into bitcoin.

Bitcoin volume has surged to record highs in Venezuela since the crisis deepened…

Venezuelans are using bitcoins to buy Amazon gift cards. They need to buy the gift cards so they can order goods and food from the online store in the U.S. and other countries. The goods are delivered by courier to Venezuela.

One Caracas-based bitcoin trader said, “Bitcoin is a way of rebelling against the system.”

Protection Against Chaos

We love bitcoin at the Palm Beach Research Group. Personally, I’ve been mining bitcoin since it was trading at $450 over a year ago.

Bitcoin is up 856% since we recommended it in April 2016. Despite those gains, we still believe it’s a strong investment.

But bitcoin is much more than that. It’s quickly becoming the world’s premier chaos hedge.

That’s why Venezuelans are turning to bitcoin. And they’re not the only ones.

In 2013, Cypriots hoarded bitcoin after the Cyprus government closed banks for a month… and confiscated 6–10% of account holders’ money to “bail in” the system.

And during Greece’s 2015 economic crisis, the government shut down banks for a month.

In both cases, Cypriots and Greeks turned to bitcoin. Bitcoin volume in Europe shot up 286% after the Cyprus bank closures. And bitcoin trades in Greece increased 79%.

As you can see, bitcoin has become a functional currency in real-world situations. That’s why it’s rising in value… and will keep rising.

I recommend buying a small amount of bitcoin every month. Remember, you don’t need to buy a full bitcoin… Just a fraction will do.

One day, you’ll be glad you did… I promise.


Michigander Looney Thu, 08/24/2017 - 09:29 Permalink

You think you would take this as a lesson in reality as opposed to constantly belittling what is. Why is it that Venezualans arent using bullion in this time of crises? Hmmm?I'm not smart enough to know what is real anymore. Realities left the building many years ago. I know my thousands of ounces of silver and 10s of ounces of gold languish while my crytpo holdngs are growing nicely.What will be money in America when our day of reckoning comes? If you think you know, you are lying to yourself.

In reply to by Looney

VD (not verified) Wed, 08/23/2017 - 20:40 Permalink

so when TPTB pull the plug on Tulipcoin, what will the poor Venezuelans do? i already feel for them...

Advoc8tr blueskyranch Wed, 08/23/2017 - 20:55 Permalink

Come now .. that is a real stretch.  Forget the fact its price hasn't moved with hundreds of billions in fiat manifested from thin air - like it is supposed to -  it is nowhere near as good as BTC in terms of hedging against monetary inflation ....How would this guy safely send a block of gold bullion to his friend ? His friend then needs to find somewhere to exchange it before the medication can be purchased ?How far would you get walking around Venezuala with bars of gold bullion in your pocket ??  It would be gone in 5 minutes and you'd probably be killed for your trouble.The time has passed to accept the superiority of BTC ... Right or Wrong it is self evident at this stage.   Bitcoin may very well save gold ... when the current system is abandoned and thus printed fiat can no longer be used to manipulate the price ... but if you had BTC all along you could buy 10 times as much gold.I was 100% Gold up until a year ago. Moving 50% into BTC was the best move ever ... that 50% now represents 90% while the other initial 50% in gold remains static and represents on 10% of portfolio value now.Just do it.

In reply to by blueskyranch

HRH Feant2 (not verified) buzzkillb Wed, 08/23/2017 - 21:17 Permalink

I was over on Utube on two different live chat streams. One was the Hagmann and Hagmann Report and the other was Everett Tweakers Live Cam. Both of them are full of zombies. Not the same kind of zombies, but jeezus there are some crazy people in the US.

In other words, yes, the US is gone.

In reply to by buzzkillb

Manipuflation Advoc8tr Wed, 08/23/2017 - 21:13 Permalink

I just checked JM Bullion and they are taking BTC for gold.  I played with bitcoin early on.  There are too many issues for my liking.  It is not as secure as anyone thinks.  It's not all bad but it isn't for me.  Any that pisses off the banksters I like.  For that reason alone I don't rip Bitcoin.  Bitcoin still relies on fiatskis to determine it's value.  And electricity and an internet connection.  I don't like those aspects at all.   

In reply to by Advoc8tr

Billy the Poet tmosley Wed, 08/23/2017 - 21:39 Permalink

So everybody in Venezuela has access to and accepts Bitcoin and only Bitcoin? Surely people are dealing in a variety of ways. Illegal gold mining in Venezuela causing deaths, malaria, gang fights and deforestation A three-year recession in Venezuela paired with ramping inflation and food shortages has prompted many to turn to illegal gold mining with the hope of getting rich or at least have the means to get basic supplies in the overpriced black market. http://www.mining.com/illegal-gold-mining-in-venezuela-causing-deaths-m…

In reply to by tmosley