Note from the CEO: Whoa! Sense a trend here? Chinese go to bitcoin to get currency out. Japan prints money to weaken the Yen and bitcoin sales jump. Now here is Venezuela failing and people with money jump at bitcoin. It’s a worldwide trend that’s catching on. After all, what are the odds you can get through airport security with gold bars stuffed in your pockets? Step over here for a pat down please.
“The financial situation in Venezuela is very dire right now. The problems are only compounded now that China is cutting off cash transfers to the country. China has poured billions into Venezuela in recent decades, but there will be no new loans issued to the Latin American country. A positive trend for Bitcoin, which has already gained significant traction in the region.
It was only a matter of time until the cash flow from China to Venezuela would dry up. Supporting a country in dire financial straits is very noble, but unless money is returned, it is not sustainable in the long run. Unfortunately for Venezuela, this news could not come at a worse time, as things have gone from worse to near-nightmare levels for residents and enterprises.
It has to be said; China has been doing everything they can to help out Venezuela during these difficult times. Chinese state banks have loaned US$60bn to the struggling country, and there is an outstanding debt of roughly US$20bn that still needs to be settled. Unfortunately, that will not happen anytime soon, as the country has little to no money to spare right now.”