The month of July saw a high number of bitcoin transactions in Venezuela with August achieving a new record high as more people turn to the digital currency as the country continues to tackle the inflation of Bolivar.
Venezuela is a country that is blighted by hyperinflation. According to the International Monetary Fund (IMF), Venezuela is projected to remain in a deep recession in 2016. Compared to contraction rate of 5.7 percent in 2015, 2016 saw a rise of 8 percent.
Political uncertainty and the decline in the price of oil are factors affecting macroeconomic imbalances and pressures. The IMF states that inflation in Venezuela is predicted to rise to 500 percent in 2016 and further next year.
It’s no wonder then that many people recognize the benefits that bitcoin presents for the future and to shield them against further inflation.
Record Highs of Bitcoin Use
In the first week of August, bitcoin transactions in Venezuela reached $141.7 million bolivar that was exchanged for bitcoin, amounting to $141 million USD.
According to a report, this record beat the previous week’s,