Living in a country submerged in the highest hyperinflation on the planet, as is the case of Venezuela, is like being condemned to pay a tax that increases day by day without stopping every time you buy something. In this country, the local currency, the bolivar, is increasingly diluted in the extreme devaluation it is suffering against the US dollar, becoming a practically useless paper in the Venezuelan economy.
At the same time, salaries in local currency are decreasing in relation to the exchange rate in dollars and of course with respect to the price of food, to have an idea, 6 years ago the minimum salary in bolivars was equivalent to USD 300 and today it is equivalent to $15 per month. Obviously no one can live with so little pay, so it is necessary to do more than one job, migrate to another country or start a business.
Likewise, the local currency is only used to exchange it for dollars, which in turn have taken over the de facto role of the bolivar in the Venezuelan economy, and more and more money is being issued to exchange it for dollars. Although the U.S. dollar has allowed to establish itself as a lifeline for the country's economy, certain difficulties are arising as a result of the natural depreciation of the U.S. currency, which is also weakening step by step as the prices of food and raw materials are increasing internationally.
Venezuela being the example of the fiat model debacle, cryptocurrencies have become true shields against hyperinflation, placing the population of this country at the forefront of the adoption of the decentralized digital model in the world. Venezuela is one of the main countries where Bitcoin and cryptocurrencies have exerted a great influence on the population since decentralized digital currencies are used in all aspects of Venezuelans' economic life.
In this context, Venezuelans have made Bitcoin, Hive and LEO a kind of safety net against the economic crisis, making these cryptocurrencies the engines of economic happenings in this nation. It is not surprising to read in Hive the work of the Venezuelan community, one of the most numerous in this social network, explaining to the world how it is possible to live using cryptocurrencies at a time of economic and social debacle both in Venezuela and in the world.
Nowadays, cryptoeconomy is something natural in the country, it is becoming easier and easier to exchange any digital currency for the local currency. It is important to highlight the role played by both Hive and LEO in this particular Venezuelan economy, which I would describe as a transition to the digital model. As Hive and LEO are two cryptos that can be acquired without the need to make a payment in fiat, both digital values are increasingly integrated into the national economy, precisely because of their potential to generate savings, overcome inflation and acquire goods and services.
At this time when BTC is becoming more and more unaffordable every day both Hive and LEO behave as currencies of special relevance for the economic functioning of those who hold them. Hive are easily exchangeable for bolivars, dollars and other cryptos, which helps to overcome the hyperinflation in the country as Venezuela has these digital currencies which are surpassing the value of food and other essential consumer goods for life. Unlike the dollar or the bolivar that are losing power against prices, cryptos are going in the opposite direction, they are becoming more expensive.
LEO tokens, because they have a higher value than Hive, are as valuable as BTC, I am not referring to the price but to their use. LEO tokens are used to acquire certain luxury goods (smartphones, computer equipment, motorcycles or used cars) and even as savings funds for the future. For Venezuelans the world of cryptos is a real blessing and a great ally against poverty.
