Question

Do you agree with the statement below? Why or why not?

“Given the inflation in Venezuela was well above 10,000% in 2017, Venezuela should adopt a cryptocurrency such as Bitcoin as a national currency?”

Answer 1

Venezuela also launch their Cryptocurrency petro which is partialy backed by oil gold and diamond .but the question is that can cryptocurrency like bitcoin and petro can be the national currency .

In last 12 months the condition of inflation is worst than worst in venezuela it increases more than 130000% . these are some problems if crypto currencies is taken as  national currency.

i-cryptocurrency is a mining process which is done by the complex mathemetical operation by computer  which are connected worldwide thatis why to fix the exchange rate of bit coin by any central bank is not possible.

ii-crypto currencies are transfered from one wallet to another wallet which are virtual in nature so supervision of these transaction is not possible by government.

iii-if cryptocurrency is backed by oil gold or diamond so that is aproblem for valuation because every country has their own prices of these assets .

iv-the use of cryptocurrency increases the  chance of misuse of these type of currency like for money laundering