Venezuela is in a dire situation, with the country being crushed by hyperinflation. Nicolas Maduro – President of Venezuela – has created a state-backed cryptocurrency in the form of the Petro, which is supposedly pegged to the value of one barrel of oil. On Monday he took it one step further and released a new fiat pegged to the value of the Petro – the Sovereign Bolivar. Most of the country’s inhabitants have turned their backs on Maduro and his interesting cryptocurrency in favor of Bitcoin. Bitcoin has provided an unbelievable lifeline to the citizens of Venezuela thanks to cheap electricity and mining equipment. The cost of mining is virtually negligible, making Venezuela a hotbed of crypto mining activity. Interestingly – according to data from discoverdash.com – around 90 new merchants from Venezuela have been added, indicating that Dash is fast becoming as popular as Bitcoin.
The Dash Equation
Probably the main reason behind why so many new stores accepting Dash is the price of Dash. Currently, it costs 1615380008 Bolivars to buy one Bitcoin, and this number is going up every day. When you look at how much Dash costs – 33550200.17 Bolivars – you can quickly realize why Venezuelans are turning to the altcoin. In addition to this, transactions made with Dash are completed in seconds, not minutes – making it ideal for merchants. These two factors are contributing to the Dash uprising in Venezuela, and will most likely help take Dash to the number one spot in the beleaguered country.
Speed is the Key
Due to the rapidly devaluing Bolivar, retailers are beginning to shift towards cryptos. For example, if a retailer accepts a card payment for an item, by the time the money has cleared into the retailers account in around three working days, the Bolivar has sunk even more and the retailer lost money. Dash’s ultra-low transaction fees and millisecond transaction times make it the perfect cryptocurrency for retailers. Big brand names such as subway and Calvin Klein have already jumped on the Dash train in Venezuela, prompting others to follow suit.
The Dash Foundation
Unlike most other cryptos, when a transaction is confirmed on the Dash network, more cryptos are produced. Most of those go to the nodes which confirmed the transaction, but around 10% goes into a big pot which is then given to projects looking to encourage Dash adoption. This is another vital aspect of Dash that has helped it to become so popular in Venezuela. Almost $1 million has already been spent in Venezuela on Dash adoption, ranging from billboards to stickers for merchants to proudly display.
Cryptocurrencies are becoming the way forward for many countries facing crises. Entrepreneurs in Nigeria are turning to BTC as the Naira collapses slowly, and Iran is considering creating its own crypto similar to the Petro. Cryptocurrencies provide citizens of failing economies with an opportunity to survive and still put food on the table when fiat has failed them.