Venezuelans mine digital currency to avoid starvation

Economic apocalypse in South American Venezuela led to the situation when cryptocurrency mining became the only chance of survival for some people. This situation is described on Bitcoinist.com.

Seven hundred fourteen percent (714%) – this is the inflation level in Venezuela from the first quarter of 2016 to the first quarter of 2017. Experts predict that by the end of this year this level can reach 1600%. Hundreds of thousands of people are literally starving, they can’t even fulfill their basic need for food.

Amidst this dire socio-economic background, some have a phantasm of a hope that mining will fix their financial problems. Electricity is in fact free in Venezuela, as the state subsidizes it due to lack of funds in people’s wallets. Those who can buy the mining equipment get $500 in case they are lucky enough – and this sum is enough to feed four mouths in the family. While cash is not really useful in the country, bitcoins have become a popular payment method for goods and services.

The President of Venezuela is not amused with this and calls miners ‘capitalist parasites’. Despite the fact that there are no state regulations on cryptocurrency, Bitcoin mining and selling is not prohibited, some miners have already been arrested with their tools confiscated. One should not exclude the fact, however, that the confiscated mining apparatus is used by officials and law enforcers… exactly as intended.