Venezuela: Inflation Tops 100,000 Percent, Bitcoin Costs 60M Bolivars

Venezuela’s currency the Bolivar Fuerte jumped to 9.2 million per dollar and almost 60 million per bitcoin August 18, just two days before a major redenomination cuts five zeros off its value.

Redenomination Looms

As reported by cryptocurrency commentators including support head Eduardo Gomez, the bolivar traded unofficially at around 6.7 million VEF per 1 USD August 17, before suddenly depreciating rapidly to 9.2 million.

“Yesterday 1 bitcoin was worth 44 billion bolivars, now it’s at 59 billion,” he noted.

Venezuela: Record Bitcoin Buying Spree Continues Amid Hyperinflation

As Bitcoinist recently reported, August saw the bolivar, which is the world’s least-valued currency, extend its increasingly troubled history. Combined with current behavior on Bitcoin markets, the price 00 of the largest cryptocurrency in VEF terms is now doubling every 18 days.

According to Bloomberg’s Cafe Con Leche Index, which tracks the rate of inflation in Venezuela in lieu of official government statistics, a hypothetical coffee now costs 2.5 million VEF – the highest price ever recorded.

This, Bloomberg suggests, puts the annual rate of inflation above 100,000 percent.

Calls To Educate Citizens In Bitcoin Use

Corresponding to the devaluation of the bolivar, Bitcoin trading activity in Venezuela is meanwhile setting new records on a weekly basis.

Data from Coin Dance shows that for the seven days ending August 11, P2P trading platform Localbitcoins handled over 20 trillion VEF in volume.

Despite the growth, however, difficulties in educating and allowing Venezuelan nationals access to free trading of cryptocurrency remains a problem. Responding to Gomez, developer Randy Brito urged support for his project, which aims to spark “hyperbitcoinization” in Venezuela through a bounty scheme.

In addition, Brito advocated his nonprofit operation Bitcoin Venezuela, which provides remote education and support to Venezuelans wanting to leverage the cryptocurrency’s benefits.

As of press time Saturday, Bitcoin Venezuela gave the price of 1 BTC as around 54 billion VEF.

What do you think about Venezuela’s inflation? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter

No More Coinbase and BitPay: Process Your Own Bitcoin Payments for $6 a Month

Merchants can now use a Bitcoin full node to process their own payments via the BTCPay server for under $6 a month — with or without Lightning Network functionality. 

Removing Microsoft Azure Reliance

A guide to the solution from creator and Bitcoin developer Nicolas Dorier published August 18 explains how merchants who want to accept payments without banking formalities can now do so entirely independently. A secondary issue, obligatory use of Microsoft Azure, has also been resolved, reducing cost and reliance on third parties.

“BTCPay Server can easily be hosted with the magical one-click deploy to azure. However, simplicity come with a cost: Around 65 USD per month,” Dorier begins.

While you can bring it down to around 20 USD per month by following this guide after initial sync. The cost of Azure is too damn high.

A further complication lies in the fact that Azure cannot be paid for with Bitcoin, leading to certain merchants “having [a] headache [when paying] for their Azure account because reasons about their credit card.”

Open Source Is ‘A Way Out’

Despite being in existence around a year, BTCPay only recently rose to prominence in the cryptocurrency world when veteran merchant CheapAir publicly documented its switch to the open source gateway after growing dissatisfaction with Coinbase and rejection of competitor BitPay.

“Bitcoin itself is decentralized, but payment processors are not, and they use their comfortable position to abuse its customers,” Dorier told Bitcoinist in an interview last year.

BTCPay is a way out.

Using an alternative VPS provider to Azure, such as Dorier’s Lithuania-based timevps, brings the cost of accepting Bitcoin transactions using a pruned full node down from a minimum of $20 per month to the equivalent of around $6.

“…If tomorrow the US government bans Bitcoin, or that using Bitcoin becomes suddenly “offensive or unpatriotic” (which will happen when shit hit the fan with USD), and merchants are using Microsoft Azure, then lots of shops will end up closed. This would hurt the ecosystem,” he added. 

What do you think about BTCPay’s merchant payments option? Let us know in the comments below! 

Images courtesy of Shutterstock.

Halve The Reward, Halve The Price? New Chart Forecasts $3K BTC By 2020

Bitcoin price (BTC) could continue dropping for the next two years, a new forecast which takes into account the possible effect of the next block reward halving has revealed.

The Halving Factor To Hit Bitcoin?

Uploaded to Twitter August 13, the chart, which “factors in” Bitcoin’s third halving in May 2020 suppressing prices, shows BTC/USD ‘bottoming’ at $3000 just before the event.

The trend would continue three previous cycles in Bitcoin 00, the cryptocurrency now beginning a fourth, which would last through the next halving.

As Bitcoinist reported this week, the May 2020 event could well prove to be a turning point for prices, ending the latest downtrend which could characterize the next two years.

Community members appeared to react well to the idea, Willy Woo highlighting contrasts between the state of the Bitcoin network in 2018 versus 2014 at the start of the second ‘cycle.’

According to Woo, it is “worth bearing in mind ‘14-‘15 was detoxing from a MtGox collapse,” the exchange which previously “traded 90% of world volume.”

A further one-eighth of the supply was “stolen,” along with Mt. Gox’s infamous Willybot manipulating prices globally.

“Systemically, Bitcoin 2018 is much healthier than Bitcoin 2014,” he summarized.

$160,000 By August 2023

Going forward, meanwhile, the long-term chart suggests the timeframe for the next upswing, which should begin after the halving, to be complete by August 2023.

At that point, unlike the multimillion-dollar price tags suggested by figures such as Tim Draper and John McAfee, BTC/USD should reach $160,000.

The total period between previous all-time highs in December 2017 and that date spans just over 2000 days – the longest cycle yet between Bitcoin price peaks.

Throughout previous months, further sources have continued to argue that Bitcoin should drop further from recent lows around $5900. The $5000 barrier should be breached, they argue, in order for sentiment to reverse permanently.

What do you think about the block reward halving price chart? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter