In some parts of the world, Bitcoin has emerged as an alternative form of currency, while the rest are still attempting to control and comprehend its scope. Venezuela is one of the few countries that has embraced Bitcoin, and it is now developing a new sector that will mine Bitcoin using cheap electricity.
According to Chamorro,
“Let us dollarize Venezuela using remittances as a vehicle and cryptocurrency as a bridge. We realized we could do it…immediate remittances due to the fact that it is in cryptocurrency. We can do it with stable currencies and stable remittances.”
Despite the benefits of using crypto for cross-border transactions, it only works if the country where the user sends the money accepts that crypto. This is where Valiu comes in. It is also establishing businesses on its platform, which is backed by stablecoins.
Furthermore, Venezuela saw an increase in Bitcoin mining, which was proving to be a profitable venture. According to reports, the Venezuelan capital, Caracas, generates $10,000 in bitcoin per month with 80 computers that cost $10 to power.
Furthermore, Theodoro Toukoumidis, CEO of Doctorminer, which has mining operations throughout the country, stated that he had “discovered a way to generate income effortlessly… transforming energy into money.”
Venezuela, which reported a nearly 3000 percent inflation rate in 2020, now has an economic opportunity thanks to cryptocurrency mining. According to Aaron Olmos, a crypto researcher and economist,
“Having crypto money is a way out of hyperinflation… an additional tool for dealing with the crisis.”