Hyperinflation in Venezuela, Jamie Dimon Bashes: HODL Bitcoin (BTC)?

Hyperinflation in Venezuela, Jamie Dimon Bashes: HODL Bitcoin (BTC)?

When it costs you a fortune to buy groceries in your own currency, you turn to cryptocurrencies. And that is just what is happening in Venezuela.

According to the Venezuelan Cafe Con Leche Index by Bloomberg:

We called it the Bloomberg Cafe Con Leche Index, and as the name would suggest, it tracks just one item: a cup of coffee served piping hot at a bakery in eastern Caracas. Its price has jumped to 2,000,000 bolivars* from 2,300 bolivars over the past 12 months, an increase of 86,857 percent.

With such an inflation, the people of Venezuela are having a hard time buying the daily staples such as bread and eggs. The plaguing inflation rampant throughout the country has led to the prices of goods in the country double every 18 days.

A majority of the citizens of the country reportedly live in poverty, spending an astronomical amount of money to buy even the simplest essentials.

Since it isn’t feasible for them to continue using their own currency anymore, an increasing number of Venezuelans are turning to Bitcoin (you know your country is doomed when a cryptocurrency is more stable than your currency) for use as a currency.

Due to the BTC buying spree that the Venezuelans are on, BTC price is marking new highs. The Bitcoin trade volumes have doubled every week since June—more than 17 trillion bolivars this week. The price of 1 BTC was more than 1.3 billion bolivars when this article was written.

The locals are searching for an alternative store of value, and that is made clear by the colossal increase in the volume of BTC traded in the country. Bitcoin adoption would increase in the country in the future if the hyperinflation doesn’t end. It is expected that fiat currencies would all share the same fate someday but there are still people who are still critical of Bitcoin.

Also Read: Pantera Capital CEO says that the Market Overreacted to SEC Decision

Speaking of people critical of Bitcoin, Jamie Dimon, the CEO of JPMorgan, is back to being critical of Bitcoin. He called the cryptocurrency a “scam” and said that he has “no interest” in it, according to a Bloomberg report dated Sunday, August 5.

It was during his speech at the Aspen Institute’s 25th Annual Summer Celebration Gala on Saturday that he made comments about the US economic outlook. He included cryptocurrency as a part of his comments in his speech. The media was quick to repeat his words both online and offline.

Nouriel Roubini, the NYU economist, quickly tweeted about Jamie’s comment, agreeing with him. He had come to the spotlight this year when he said that Bitcoin doesn’t fulfill any characteristics money has.

Nouriel had also criticized the volatility of Bitcoin, stating:

“Bitcoin is not even accepted at bitcoin conferences, and how can something that falls 20% one day and then rises 20% the next be a stable store of value?”

According to the Bloomberg report, Dimon suggested that “suggested governments may move to shut down the currencies [cryptocurrency], because of an inability to control them.”

With so much going around, those holding Bitcoin ask whether they should “HODL Bitcoin (BTC)” or not.

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Syed Ali Mudassar
It was when he was pursuing his graduation in Computer Science that he found his flair for writing about new and existing technologies. He likes researching about technologies and how they could help people. Currently, he works as the Content Manager at CoinFrenzy, a leading blockchain news, and media publication website.