Venezuelan User Receives Donations In Nano Amid 40,000% Inflation
Venezuela’s economy has been performing very poorly in the last few months, their currency experiencing sky-high inflation rates. This has prompted users to seek for ways other than the Venezuelan Bolivar to make transactions, and cryptocurrencies such as Nano have become an alternative currency.
Users Donate $600 In Nano
On Sunday, a Venezuelan Reddit user which goes under the nickname of ‘Windows7733’ made a post in which he reported a small cryptocurrency donation he received.
The Reddit user posted:
“I got it (0.5 Nano) from someone who helped me in my current situation, currently living in Venezuela. 0.5 nano is almost one entire monthly salary in my country. It’s more than I made last month. I’ve been doing a quick research into this cryptocurrency and it fits very well for my entire country, I’m going to read more about this and hopefully I’ll tell about nano to friends who would want to use it.”
Nano is a cryptocurrency that supports instant and zero-fee transactions, which makes it the perfect alternative currency. Initially, this post was viewed with skepticism by many. But as the post quickly gained popularity, the user posted a Venezuelan passport clarify its situation.
‘Windows7733’ decided to post his Nano address after he got a lot of support and admiration from users of the /r/nanocurrency subreddit. Once the wallet was posted it started gaining over 230 Nano coins from over 50 different users, with the donations estimated to be around $600 U.S. at the time of writing.
Although $600 may not be a large sum for U.S. citizens, in Venezuela, $600 values so much more. The user mentioned this as he updated the original post, apparently stunned at the level of support that he got.
“Thank you so much guys for your help. I never expected this to go like this. It really moves my heart for your genorosity. Not only I will buy food for me and my relatives but also I will help others with that money, especially some neighbours needing antibiotics they can’t afford.”
After the post, the user made no updates for a few days, making some users question where Windows7733 went. However, four days following the first post, the Venezuelan user gave a follow-up post, in which he explained where he went missing.
The follow-up post read:
“first of all, I apologize for not being around here lately. I’ve been busy working and preparing everything to start sending food to neighbors and other communities as I told before.”
Windows7733 went on to give details regarding on what he spent his Nano on, writing that he bought 102 kilograms of food using 29 Nano ($77) to ‘pay it forward’, giving food and money to his family, friends, and neighbors.
He then restated his undying thanks to the community who improved his life.
“Thank you so much. I can’t express in words how I’m feeling today. It’s amazing what this Reddit community is doing for my family, my neighbors, and all these people in need. NANO could change their lives and I will help them to know and use NANO. This is already improving and changing their lives for the better!”
Are Cryptos a Solution to Venezuela’s Economy?
Cryptocurrency use in Venezuela has increased tremendously amid a bleeding economy, with Business Insider’s report showing that annual inflation reached 40,000%. This overwhelming inflation has led to the devaluation of the Bolivar, leaving it with little buying value.
Mike Novogratz addressed this hyperinflation, saying:
“The idea of trusting a centralized authority is breaking down…. And it is not just the United States, look at places like Venezuela where the currency became ‘toilet paper.’”
Many of Venezuela’s citizens have started to feel the negative effects of its declining economy, with a university report revealing that over 90% of all civilians were living in poverty. The citizens of this country, such as Windows7733, have started to look into cryptocurrencies as an alternative way of value transfer, to substitute the worthless Bolivar.
Many cryptocurrency advocates are of the opinion that cryptocurrencies will replace fiat currencies in the near future, with Venezuela’s economic condition proving just how useful cryptocurrencies can become.