Venezuela Insiders – Intro

Venezuela Insiders – Intro

15. June 2019. by tompaCro
venezuela crypto

In Venezuela, where cash is difficult because of huge inflation and the crisis is heavy, people have no life but only survival.

Venezuela was once the “country with the highest global happiness index”. Because oil reserves are higher than Saudi Arabia’s oil revenue accounts for about 80% of Venezuela’s export earnings. However, since the end of the Chavez era in 2012, when Maduro came to power, the economy of Venezuela has turned sharply .

On the one hand, the decline in international crude oil prices has led to a sharp decline in Venezuela’s export earnings; on the other hand, the long-term dependence on imported goods and the nationalization of blind enterprises have weakened the economy’s ability to withstand shocks, which led to the suspension of large-scale enterprises in Venezuela.

Venezuela’s GDP growth rate for the past 5 years, screenshot from TRADINGECONOMICS.COM

In the face of inflation and financial crisis under the vicious circle, and the high unemployment rate, the social security is unstable, the Venezuelan government is unable to recover the situation, and the overall economic environment began to deteriorate sharply in 2015.

In 2017, political turmoil and the United States imposed financial sanctions on Venezuela. Internal and external difficulties made Venezuela’s GDP shrink by 16.5%, shrinking for four consecutive years.

Bitcoin Spring

Living in Venezuela is more important than anything else. When the economy of the entire country collapses, Bitcoin may be the only lifeline for the local people . As October 8, 2014, Reuters wrote in a report :

The price of bitcoin has fallen by about 70% from its peak in November last year, and the price of Venezuela’s domestic currency against the US dollar on the black market has fallen by nearly 60% in the past year.Kevin Charles, who just earned a bachelor’s degree in economics, believes that although Bitcoin’s volatility is large, Venezuela’s national currency is less secure. Normally, he will choose to exchange bitcoin for the US dollar.

Bitcoin is Smith’s lifeline. After the company went bankrupt, Smith began looking for a work online, which would be considered for paying more than $1 and paying for PayPal or cryptocurrency.

Venezuelan bitcoin trading volume since 2013, picture from

And now this is where crypto-insiders come to act. Our man Ken Smith (@Vemith in Telegram) who lives in Maracay will be our field guy. In this section we will bring you news from the field and we will try to organize donations to Venezuelan’s community so they can buy food, medicine, water, and all things people need to make some kind of living. Ken will provides us with pictures and videos and we will push for full transparency as much as we can. Ken saw Bitcoin and crypto currencies as a way out because average monthly pay is about 2$ and some people work for less. Imagine that kind of life. Take in count that inflation is huge and all that people earn worth less next day.

In the past year Ken done some marketing work on numerous blockchain projects online , including forum postings, community promotion, writing articles, and more. As a reward, these jobs give him the corresponding amount of bitcoin or project tokens. In addition, he obtained some bitcoin or project tokens through donations, airdrops and other means. To be short he did anything he think can help him earn extra money.

However, in the sea of ​​life, who has not stepped on a few pits. In the blockchain project of Ken service, most of the tokens are devalued, and some are even worthless.

In the end, only two projects paid Ken a payment for Bitcoin , one is “WeSend or Send (SDT)” and the other called “AVINOC”. He exchanged these bitcoins for $300 on LocalBitcoins for four months for himself and his family.

Sometimes he sells tokens to three or four Venezuelans he knows at the exchange rate of the US dollar against sovereign Bolivar.

As for Petro coin, Ken believe that

“The oil coin is a scam with a cryptocurrency coat. Unlike other cryptocurrencies, it is completely controlled by a centralized government. It is not a cryptocurrency. Its white paper completely copied DASH. Although the initial heart of the coin is good. , but did not achieve the desired results.”

Do Venezuelan’s hold Petro coin ?

“Yes and no. Bolívares Soberanos is the Petro. (Yes, no. Because sovereign Bolivar is a petroleum coin)”

The following two are screenshots of Smith’s bank account. Figure A shows that Bolivar’s unit is replaced by the coin’s logo. Figure B shows that 15,416.01 sovereign Bolivar is equivalent to 0.4282225 coins, with “1 The official exchange method for the value of petroleum coins worth 36,000 sovereign Bolivar is consistent.

Figure A

Figure B

Escape plan

In 2019, the situation in Venezuela remains volatile.

On January 13, the National Conference of the Venezuelan National Congress, Guaido, announced the decision to act as the acting president and called on the people to hold a national demonstration on January 23. On January 23, Venezuelan President Maduro announced that he would sever relations with the United States. On January 28, the United States announced a comprehensive sanctions against the Venezuelan oil company. On February 10, Maduro launched the most significant military exercise since Venezuela’s independence in response to possible US military intervention.

Venezuela has a population of about 30 million. In the past three years, more than 2.3 million people have reportedly left their homes and traveled to Peru, Ecuador, Chile, Colombia, Brazil and other countries in South America. The United Nations estimates that by the end of 2019, the number of people fleeing Venezuela will reach 5.3 million, forming the largest wave of immigration in modern history in South America.

You may ask why Ken didn’t left together with his family ?

“I have thought about it several times. I know that I will definitely leave Venezuela in the future, but now I don’t have enough money. I have a relative in Panama, but I need at least $600 from Maracay to Panama.”

Ken has three daughters. In order to support his family and realize his escape plan , he must find ways to increase his income. He cleaned the water pipes, installed computer programs, brushed houses, and promoted blockchain projects with his wife. Overall, his online income is much more than offline.

Now he is looking for more work related to the blockchain project , the type is not limited, as long as he can pay for the work in mainstream currencies such as BTC, ETH, BCH, XRP, DASH, he is willing to try. His work includes translation (English and Spanish), project promotion, forum postings, etc.

The picture below shows Ken Smith

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