Venezuela Turns To Bitcoin As Inflation Skyrockets

The search for inflation hedges and stability of purchasing power in a world of hyperinflation has led some in Venezuela to turn to the digital currency known as bitcoin.

The state of “economic emergency,” as it has been termed by some observers and officially by President Nicolás Maduro, is so acute that the International Monetary Fund has estimated that the inflation rate could be as high as 480 percent this year and grow to as much as 1,640 percent next year. In an effort to settle debts, all private companies have been required to give up assets, ranging from actual goods to property held. The seizure is only part of the landscape, as demand for external currencies — most notably, the dollar — has grown.

The fact remains that bitcoin, too, has been in demand for the past year. The actual confiscation of dollars has led some investors to turn attention to bitcoin due

Read more ... source: TheBitcoinNews