Bitcoin Surges Near $8000 Record Highs After Venezuela Default

We have already discussed the hyperbitcoinization of the Venezuelan economy and it appears, judging by the most recent surge, that tonight's 'official' default events for the sovereign (and PDVSA) have triggered a further rush to the 'safety' of a decentralized store of wealth...

As we noted previously, Venezuela’s worsening economic collapse has created something of a social experiment in the use of a digital currency as a de facto currency - a phenomenon that’s also playing out in troubled Zimbabwe.

According to, bitcoin adoption in Zimbabwe is seemingly skyrocketing as the country’s economic situation looks bleak. So much so, that one bitcoin is trading at nearly $10,000 on the exchange, while the global average is, at press time, of $5,642.00.


According to a local trader, bitcoin isn’t just being bought by individuals, but by businesses with bills to pay. The country adopted the U.S. dollar back in 2009 as its fiat currency, as the Zimbabwean dollar had lost nearly all its value.


At press time, LocalBitcoins Zimbabwe has people buying bitcoin at the global average, and some buying the cryptocurrency for cash for well over $10,000 in the country’s capital. Bitcoin, as every bitcoiner would expect, is helping people in the country survive times of economic uncertainty, as Zimbabwe has been embroiled in a crisis for years.

And as inflation in Venezuela has spiraled further out of control - by one estimated, it peaked above 2,400% in September - more Venezuelans are resorting to mining bitcoin, litecoin and other digital currencies as a means of coping with the country's out-of-control hyperinflation and surviving in a country where staples like food and medicine are scarce.

And then, moments after ISDA found that Venezuela had triggered its Credit Default Swaps by failing to repay its debt on time, Bitcoin surged over $500 to new record highs just shy of $8000.

With the collapse of the economy and now default, Venezuelans are running out of options. Bitcoin - just like gold - will come as a saving grace to many people. It has kept food on the tables of families, helped Venezuelans escape the distraught nation, and acted as a voice of rebellion against the oppressive government. But how Maduro’s regime will proceed remains to be seen.


I_rikey_lice tmosley Thu, 11/16/2017 - 18:51 Permalink

Reminds me of the fools who listened to Jim Sinclair and took out share certificates in his company instead of keeping them in their brokerage.Most of these suckers still hold the certificates which have lost over 95% from the top. Not so easy to hit the sell button when your shares are sitting in a safe. It is a big hassle and expense getting your shares back to the brokerage, not to mention the time involved.Mosley is correct, there is a greater risk of not being able to sell when the time comes than the risk of keeping them on the exchange.  

In reply to by tmosley

QueeroHedge I_rikey_lice Thu, 11/16/2017 - 19:46 Permalink

>So you don't have to pay an arbitrarily high charge to get your coins to the exchange to sell when the network collapses. You have your entire holdings on exchanges? That is a hell of a lot of risk to avoid a relatively small fee and would explain why you missed out on free BCH, negating the need for you to choose between BTC and BCH. Guess I mistook you for a HODLer. 

In reply to by I_rikey_lice

Buckaroo Banzai I_rikey_lice Thu, 11/16/2017 - 20:26 Permalink

"Mosley is correct, there is a greater risk of not being able to sell when the time comes than the risk of keeping them on the exchange."Oh really? The one thing you can definitively say about cryptocurrencies is, exchange risk has proven to be much, much more significant than liquidity risk.When the Bitcoin market seized up a few days ago, and transaction times stretched from hours to days, it prevented a lot of people from buying BitCoin Cash near the top. Tbqh, with the benefit of hindsight, that's looking a lot more like a feature, not a bug.

In reply to by I_rikey_lice

dcohn BaBaBouy Thu, 11/16/2017 - 18:45 Permalink

WRONG.Kraken has been helping people recover their Mt. Gox resources but shit happens.Like The dollar is so perfect.What are all you guys gonna do when you see Bitcoin at $100K and a real part of the financial system.Imagine you dicks will say sorry I was wrong.  HAAnd Trump and his Elephant killing tail cutting SON.  Yea we need a lot more people like Trump.  Yea we need them to go with that big turd I just flushed.  Hillary was HELL  TRUMP is simply as asshole.KILLING Elephants for fun I am sure most of you dicks agree with.

In reply to by BaBaBouy

dasein211 overbet Thu, 11/16/2017 - 18:03 Permalink

I sold at 7800 bought at 6600 and am waiting for the next leg up. I never felt BCH was going to compete but it sure allowed me to buy on a nice dip. BTC is real. BCH is a good alternative should BTC fail but as of now I don’t see that happening. A bad trade is just a bad trade. Happens to everyone. Buy a basket of the top 8 cryptos and HODL. Don’t liquidate everything you have to do it however- that’s retarded.

In reply to by overbet

tion blentus Thu, 11/16/2017 - 17:45 Permalink

>Whoever listens to his advice deserves what comes to him/her.It's a good thing we are all adults capable of considering different viewpoints, doing our own critical thinking, making our own decisions, and taking responsibility for said decisions.  I mean, we are, right?  Some people give me doubts. Feant is due for a menopausal super cunt meltdown any minute now.

In reply to by blentus

tion Endgame Napoleon Thu, 11/16/2017 - 19:07 Permalink

Mommas don't belong in the toxic stressful workplace, farming fiat outside of the home, and would be better of helping to provision for their families with frugal top notch homemaking and finding ways to farm fiat from home.Feant's super cunt nigger tirade got me thinking of where else I have seen women act so anxious to knife others, besides the menopausal freakouts.  Besides the mommas, who have crazy swinging horomones as a result of pregnancy/birth, I have also seen it in the batshit crazy liberals who foam at the mouth too much.  I hypothesize that besides just severe horomone issues, there may be a vitamin B deficiency issue at play.  Eating more meat and fixing the gender roles /gender war issues would probably do a body good.  JMO lol.   

In reply to by Endgame Napoleon

blentus tmosley Thu, 11/16/2017 - 18:44 Permalink

> If you don't have special insight into this thing, you had best own an equal amount of both coins, or you are gambling. I think I have such insight, so I am out of BTC and into BCH with the proceeds. Still holding alts in my core wallet.I see.You are using 'cognitive dissonance' phrase more and more often.I am getting worried for you.

In reply to by tmosley

blentus tmosley Thu, 11/16/2017 - 19:49 Permalink

Man, look under your bed, there might be someone waiting for you. You're ridiculous.I've been in this shit since 2011, I've seen/done so much shit I don't have 'sides'. I hate them all equally (ok, I have a special love for Roger Ver and his band of crooks).But I do have personal opinion of which technology is having the best long-term chance, and I will always argue for it. It is in my (kids') interest to see it happen.And I will call you out for your lies, always. Well, until I get bored of this place, at least.As I've demonstrated yesterday (and you, of course, conveniently didn't see it, like you never see anything that doesn't suit you), I am able to do transaction with a fee of 1.5 EUR (all by default), without using Segwit compatible wallets/addresses. With Segwit, it would go down even more, possibly even half of that. 6 confirmations, 6 consecutive blocks, around 40 minutes.I did another one today for 1.2 EUR. Default fee again.So, fuck off with "$10 transaction fee" narrative, at least. If you don't know how something works or can't be bothered to actually use/test it youself, don't tell your wrong assumptions out loud.Also - are you under impression that BTC 'lost'?Anyway, go buy some more BCH, it's been dropping. I know I will. Let's see if Roger's "wall" (conveniently positioned in BTC, not USD) is really going to be there. We'll hit it soon, in next few hours, if this keeps going. I mean, if he believes that BCH is worth 10% of BTC, then... good luck. He already made a killing, don't think he really cares anymore. He'll just make a new fork few months down the line, just like he did with all the previous ones.

In reply to by tmosley

11b40 blentus Thu, 11/16/2017 - 18:40 Permalink

I listened to his advice earlier this year, and I'm up more than double.  I am happy that you think I deserve it.  I think so, too.  He prompted me to dig in and learn more, which I did.  Wish I had done it sooner, too.TM also is under the belief that BCH is going to be the winner and miners were shifting to BCH and abandoning BTC, which they were for a while over the weekend.  His advice was to move BTC out of your personal wallet and onto an exchange.  Why?  Because the transactions are much faster on an exchange, and if thee were panic and BTC holders started for the exits, it would be impossible to get out quick.You can like him, hate him, whatever, but the dude does know way more than most.  Fonestar took tremendous heat on this site some time ago, and he was obnoxious, but anyone who listened to him then could easily be retired for life right now.Still, I put no more in than I can afford to lose.  No different than buying a speculative stock, so I really don't get all the passion against it.  This is supposed to be a financial blog, after all.  Maybe we should bring back Captcha.  I bet making people solve a math problem before posting would cut down on the crap we have to wade through now.

In reply to by blentus

blentus 11b40 Thu, 11/16/2017 - 20:01 Permalink

Fair points.But please, don't compare him to fonestar. Fonestar was a proper idealist.I don't hate tmosley. He used to give (and still does) good advice and certainly helps spread the word about crypto currencies and related technologies.But I hate when he lies and/or talks nonsense about crypto currencies and related technologies while pretending to be some kind of authority on the subject. Hey, I got lucky, I know everything now. He sometimes has no idea about things he is talking about.He keeps repeating "$10 transaction fees", and that is a lie. I did 2 transactions in past 24 hours and paid 1.5 EUR and 1.2 EUR - without adjusting anything, just using defaults. 6 confirmations in 6 blocks, ~40 minutes. I could have gotten it down, a lot, if I used Segwit compatible wallets/addresses on both ends.He had absolutely no idea why miners moved to BCH last weekend and he called the end of BTC already. And the actual event was easily visible in shitty places like Reddit, everyone could see it. So he can't even get simple things right. And yet, he advised people to jump into BCH. In the middle of fucking pump&dump, while you could hardly make any transactions. He will conveniently forget (or maybe he honestly doesn't even know, hah) to tell you that Roger Ver has been pretty much involved in every single fork of Bitcoin so far (Unlimited, Classic, Bitcoin Cash, Segwit2X - which failed - don't remember if he also did XT, fucking hell...). Except Bitcoin Gold, to best of my knowledge.I have no problems with his opinions - only with lies and wrong information. And when I was refering to 'following his advice', I was refering to 'move to BCH' advice, not everything he ever said, of course. He makes some very good advices.And he loves redefining English words. Like "abandon", for example :)

In reply to by 11b40

HRClinton BaBaBouy Thu, 11/16/2017 - 20:32 Permalink

But, but... ZH and its army of gold shills told me that GOLD would skyrocket when:  QE keeps going    There is political turmoil   Countries default   ...   The cows come homePM shills: the Swamp Realtors of Commodity investing / speculation. BTC is where Gold would be, if it weren't manipulated by TPTB. Notwithstanding that, the hungry reptiles from Swamp Realty want you to buy their shiny products, cause... they're starved for fees and commissions, and the cows do come home. Eventually.(Now watch them attack BTC -- their anti-fiat peer -- and its owners, instead of attacking the CB money cartel. That is how you know that they are Elmer Gantry types, that they are Swamp Realtors.)

In reply to by BaBaBouy