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Venezuela shuts down banks amid panic, Bitcoin trading soars

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https://decrypt.co/22750/venezuela-shuts-down-banks-coronavirus-bitcoin-trading-soars?amp=1.......OF INTEREST .......

Venezuela shuts down banks amid panic, Bitcoin trading soars

Venezuela is under a nationwide quarantine to fight the spread of coronavirus, shutting down all banks. At the same time, Bitcoin trading on p2p exchanges is on the rise.

By Jose Antonio Lanz

3 min read

 

Mar 17, 2020

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Despite only having 33 cases of coronavirus throughout Venezuela, President Nicolas Maduro today placed the entire country under quarantine to prevent the spread of the deadly virus.

And in compliance with Maduro's decree, the entire national banking system has shut its doors for an indefinite period of time. Meanwhile, Bitcoin trading within Venezuela appears to be on the rise.

Antonio Morales Rodriguez, head of the SUDEBANthe highest regulatory body for all banking activity in Venezuelaissued a letter addressed to the nation's banks earlier this week, urging them to close their doors with no clear date of return to normalcy:

 

 

 

"I am writing this letter ... to instruct you that, starting Monday, March 16, 2020, all activities involving direct attention to customers, users and the general public through agencies, branches, offices and administrative headquarters throughout the country will be indefinitely suspended," Rodriguez's letter states.

News of the bank closures, however, appears to have been mostly shrugged off by the Venezuelan public. Cash shortages, a dependence on the US dollar, and a wanting technological infrastructure have led Venezuelans to dispense with traditional banking services. For years, an informal economy in Venezuela has thrived, with most people sticking to cash (when available), barter, gold (in the southern regions of the country), and crypto (among a small but growing segment of the population).

Bitcoin trading increases during the crisis

In fact, Bitcoin trading volume on the peer-to-peer exchange LocalBitcoins is currently experiencing its biggest surge of the year. At the end of February, volume stood at around 491 BTC. By last week, that figure had increased to 540 BTC. That trumps the volume of Bitcoin traded in US dollars on the same platform, which closed the week at 479 BTC.
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At the same time, throughout Latin America, other countries (with the exception of Brazil) are becoming increasingly cautious with regard to the new coronavirus. Countries such as Chile, Colombia, Ecuador, Peru, Uruguay, and Paraguay have closed their borders, and much of the population within these nations have been forced to stay in their homes under quarantine.

And, likewise, crypto trading volume in a few of these nations appears to be on the rise. In Colombia, for example, Bitcoin trading volume went from 289 BTC to 403 BTC in just one week in the midst of the pandemic, which are figures not seen in the country since mid-2019. In Argentina, traders broke the weekly barrier of 50 BTC—a milestone that has been reached fewer than 10 times in the last three years.

Meanwhile, in Chinathe country with the highest volume of p2p tradingBitcoin reached a premium of more than 6% in OTC platforms for the first time earlier this week.

 

 

 

It all just goes to show: despite the panic, quarantines, and bank closures, Bitcoin stays open.

 
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The question is, How many people are holding the coin? Not the amount of Bitcoin in country...because mining takes energy and the grid is intermittent there. I am not opposed to bitcoin as a way to play just like stocks but at the end of the day the average joe will not be joining bitcoin. Especially in the Economy of Venezuela. Which is where the US is headed. Ultimately the greatest form of "value" will be found in tangibles in the coming Global Economic Collapse.

 

I think 30 percent of bitcoin is owned by 1 guy. And again the average Joe is not going to be mining. They just aren't. Your money is better spent  in tangibles right now. Now after the collapse and the trend line starts to move up (im guessing 10 years) but only when the trend line  has been flat for a while, once you see it moving up then you take a bit of your tangibles cash it in if you want to make bets in whatever market. But right now the US is going through a reset.

 

I have a friend who lets me bloviate with him, and we like to show off to each other our knowledge of patterns, and how these cycles, and EVERYTHING is a cycle...has literally two phases or two opposite poles, in the case of the current market, we just left the top of the wave we pointed the rollercoaster down and now we are on the trend line headed downward and it has momentum, there is no stopping the invetible. It has to happen. The market wasn't growing. The contraction we are seeing is proof of that. That and GDP wasn't growing to the rate they needed annually. 

 

They are pumping pumping pumping, yes for a minute it will seem like fun but just look to venezuela or latin america in the 90s to see where we are headed. We haven't crashed the roller coaster to the bottom yet...you will know when you can't get food off the shelves. Then there will not be a "quick" recovery, they will try a digital currency but the problem will be distrust and social unrest for years to follow...Venezuela is in the 6th year and its getting worse...so once we hit the bottom of the curve there will be a flat line or decent for a long time (a rest) because that is how cycles work...once that trend line moves up after some years then you will know where to put your "value" whether in new investments, stocks, bitcoing, whatever!

 

Don't buy into the digital coin just yet. It will not sustain you for what is coming.

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