Category Archives: Caracus

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12 Days of Coinbase Targets Venezuelan Border Town

12 Days of Coinbase Targets Venezuelan Border Town

The traditional 12 days of Christmas started yesterday crypto-style with Coinbase using the song to promote its worldwide services, focusing Day 2 on Venezuelan families in need.

In tune with the season of goodwill, the global exchange giant based in San Francisco, California, has promised to make an announcement that will profit someone each day leading up the big day itself.

Day 1 saw Coinbase announcing that users could buy gift cards so that family and friends could get some Uber, Adidas and Nike surprises through its U-gift program. For those hoping that materialism of this kind was a little too “Christmas Carol” for a multi-national, they have pushed the boat out a bit more on the second day with a gift which feels more befitting a company with such huge profits.

Venezuela continues to somehow avoid major news networks despite a humanitarian crisis there which is gradually becoming more intense by the day.

With a virtually non-existent virtual currency, the Petro, doing absolutely nothing to lift the economy, and inflation rising at alarming rates, eclipsing Germany in the Second World War, nationals are fleeing to neighboring South American countries for refuge. Venezuela is not in good shape, despite Bitcoin donations pouring in to alleviate pressure on some families. The local currency the Bolivar is now almost worthless.

Coinbase is donating USD 10,000 in ZCash (ZEC) to GiveCrypto.org, a nonprofit organization that distributes cryptocurrency to people living in poverty. The idea is that courtesy of Coinbase, GiveCrypto.org will donate USD 1 a day to the wallets of over 100 families living in the Venezuelan border town of Santa Elana de Uairen, located in Bolívar state near the border with Brazil and Guyana.

Recipients can spend their donated crypto on basic supplies and food over a period of three months in Santa Elana de Uairen. The USD 1 worth of crypto a day will allow families to buy 1-2 kilos of protein or 2 kilos of starches and vegetables every day.

 

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Venezuela Turns to Bitcoin Mining as Hyperinflation Reaches 18,000%

Venezuelans are increasingly turning to Bitcoin mining in order to combat hyperinflation in the South American country, Bloomberg reports.

Caracas has recently become a crypto mining hub, says Daniel Cancel, a reporter and resident, in a report from the capital. Cancel talks of a friend living in the city buying a machine to mine crypto and telling his son to run it round the clock. The result; USD 6 a day. The reporter tells of another friend who had to move his machine due to noise complaints. The most successful, Cancel reports, is a friend that has invested with his family purchasing three machines and is now clearing USD 1,000 a month, which in Caracas is a “small fortune”, he says.

So why are residents of Caracas going to these lengths to provide themselves with any kind of an income?

Under its controversial president, Nicolas Maduro, the country continues to struggle with a hyperinflation rate estimated at 2,400% at the end of 2017, which has skyrocketed to 18,000% in 2018. The crumbling economy is now causing a humanitarian crisis with 600,000 Venezuelans fleeing to neighboring Columbia alone.

Venezuela’s crisis has steadily worsened as a result of lower oil prices, corruption, and a totally mismanaged socialist system, experiencing all but a total collapse of the economy, public services, security, and healthcare, writes the Independent.

Armed gangs and Colombian guerrilla roam the beleaguered nation’s borders. Pro-government militias are terrorizing urban areas, while police stand accused of extrajudicial killings in a country which has now the dubious notoriety of being home to 10 of the world’s most dangerous cities, according to Igarape Institute, a Brazilian think tank which studies violence.

Bitcoin is now recognized as the only way of getting around the country’s currency controls, and bitcoin mining offers Venezuelans a chance to pay for good imported from overseas. Although the process is not sanctioned for individuals other than going through ‘official’ methods, residents are able to sidestep the government controls to buy foodstuffs from Florida and Miami by trading Bitcoin for bolivars, the local hyperinflated currency.

Cancel suggests that even the USD 6 a day his friend was mining is half decent money in the depression hit country, commenting:

“One key to my mining pals’ success: electricity, while spotty, is basically free, the result of an odd combination of hyperinflation and government-mandated utility price freezes. (It’ll cost you 900,000 bolivars—or about USD 0.90 at the black-market rate—for a coffee, pastry, and juice at a cafe, but you can pay your monthly electricity, water, gas, internet and phone bills for about 300,000 bolivars.).”

Cancel maintains that for those residents who haven’t yet fled the borders to Columbia, its all about managing “somehow” to set up a steady flow of revenue in dollars or another foreign currency. “Human beings can adapt to anything” is a line he keeps hearing as his friends continue the daily struggle of life in Caracas.

 

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