97 sats \ 19 replies \ @Undisciplined 7 May \ on: What is it like to live in Venezuela currently? Current economy econ
I like to highlight for people in the Western economies that the primary beneficiaries of bitcoin are not going to be us.
The "Global South" is where it is most urgently needed, because that's where people are dealing with the most monetary chaos and state overreach.
I really appreciate the update.
Correct, bitcoin is a lifeline to an economy that has devalued its currency by 700% in two years, education about crypto is vital and necessary to prevent more families from being destroyed by extreme poverty. Another aspect that I forgot to mention and I just remembered is that in Venezuela for many it has been a paradise for mining, the cost of electricity is practically zero (that is why it does not work), but people have looked for alternative solutions to obtain electricity, many people have returned, and apparently live "quietly" thanks to bitcoin.
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I remember reading about the big bitcoin mining operations in Venezuela a few years ago. That happens everywhere that energy is heavily subsidized.
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Price ceilings create shortages. Bitcoin miners were just one of the more convenient groups to scapegoat for the inevitable result of bad policy.
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A price ceiling means that it's illegal to sell electricity above a certain price. Even the most resource rich places, still have a limited energy supply.
When the price is held down artificially, energy intensive activities will expand to take advantage of the lower prices.
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At any given moment there's a finite amount of power being generated from hydro plants, even if they were to produce energy indefinitely.
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Since that would mean the dollar has collapsed, they would kinda have to.
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I guess they could hypothetically back the dollar with bitcoin. That would indirectly put the rest of the world on a de facto bitcoin standard.
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