The reality is that Venezuela is poor now but Bitcoin sold at a premium price in Venezuela. WHY?

The prices for cryptocurrencies vary for different nations. The ‘advertised’ price is often an average of all the prices available on exchanges. At the moment, the demand for Bitcoin in Venezuela seems to be increasing significantly, and this can push the price of one BTC into a five-digit number.

At the moment, most people from all over the world know that the financial situation in Venezuela isn’t at its best. Hyperinflation has plagued the nation for years, and things continue to get even worse. There’s little to nothing the authorities and central bank can do in order to block the fiscal onslaught.

What are the main issues in Venezuela?

Firstly, president Maduro introduced a nationwide cryptocurrency some time ago. Since day one, there were lots of uncomfortable questions concerning this specific venture. Because Venezuela doesn’t have any more oil reserves to back up the Petro, there isn’t any actual use or need for this federal cryptocurrency.

Bitcoin sold at a premium price in Venezuela

Prices for services and products are still skyrocketing virtually daily while the national fiat currency devalues even farther. For all, the only solution would be to attempt to enhance their financial resources. Bitcoin is now of fantastic interest in the nation, and that trend isn’t slowing down.

In a state where digital and physical money is losing worth frequently, the requirement for other assets will become more evident. Venezuela is good example in this situation and Bitcoin is one such asset. The nation has witnessed a lot of spikes of BTC trading volume via peer-reviewed platforms like LocalBitcoins.

What’s even more notable is that the price people are prepared to pay for 1 Bitcoin.

Given the current international price of $7,560, an individual from Venezuela would be expected to pay a premium price in Venezuela.  This isn’t something most are willing to believe, but when it comes to Venezuela, the difference between this international price and the one available locally can be steep.

To understand the difference, consider the price of 1 BTC in Venezuela, which is currently near $9,500. That’s around a $2,000 extra fee to just escape the Venezuelan bolivar. It is not the first time that prices in Venezuela spike, as Venezuela has consistently had greater prices for BTC.

Why is Bitcoin sold at a premium price in Venezuela?

At the current rate of inflation that Venezuela is suffering from, this digital currency can’t be bought via a bank account, or card, because of the financial situation. The desire to escape inflation and buy something which resided outside of this system builds up the demand for Bitcoin. And when the acquisition is impeded by the very system, then is when the scarcity appears.

Venezuela is facing hard times, and its people are willing to put their last money of anything else than the Venezuelan pesos. Foreign fiat currencies such as the US dollar is in the same situation as Bitcoin: Hard to get and sold at a premium price.

For the rest of the world, these prices don’t apply, and we will have to wait for a bigger demand from all over the world the get that price up again.