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Venezuela’s appetite for Bitcoin is unlikely to slow as the Bolivar continues to trade for less than the value of video game currency.
Positive publicity for in-game tokens has come from an unlikely source, as Venezuela’s Bolivar is now worth less than World of Warcraft gold. As early as mid-July, World of Warcraft’s in-game ‘gold’ was more valuable than the real-life Bolivar, something keenly spotted by social media commentators and mainstream media.
It happened again, WoW gold is worth more than the Venezuelan Bolivar.Black Market: Bs.F 8493.97 per USDWoW Token: ~8385g per USD. pic.twitter.com/Il7TVqYNsH— Kaleb (@KalebPrime) July 14, 2017
It happened again, WoW gold is worth more than the Venezuelan Bolivar.Black Market: Bs.F 8493.97 per USDWoW Token: ~8385g per USD. pic.twitter.com/Il7TVqYNsH
Following highly a highly controversial election and threats of US sanctions, the Venezuelan economy continues to nosedive. Its currency has faced rapid inflation over the last few years, with current inflation rates approaching 2,000%.
The government’s official inflation rate is dramatically understated. Media and economists have eschewed this official number, instead focusing on the value of the US dollar on the black market. Dollars are currently selling at a rate of 13,000 Bolivar to one dollar. Only recently the Bolivar was trading at 8,500 per dollar, according to local monitoring resource Venezuela Econ.
In contrast, World of Warcraft ‘‘gold’ is trading at around 7,500 units per dollar at press time.
For the past year, Venezuelans have been turning to Bitcoin to shore up their deteriorating currency holdings. Despite a crackdown on Venezuelan flagship exchange SurBitcoin and even miners, the local industry continues to explode.
Venezuelan businesses have also begun accepting Bitcoin in lieu of the deteriorating Bolivar despite the potential consequences.
The founder of SurBitcoin told The Atlantic this week:
“People haven’t stopped mining. They’ve just gone deeper underground.”
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