Bitcoin Mining Can Land You In Jail In Venezuela

Above: Bitcoin Mining Can Land You In Jail In Venezuela.

Cryptocurrencies like Bitcoin have long been seen as a risky investment but in Venezuela you can end up behind bars. Thousands of others across Venezuela are secretly mining Bitcoin just to make ends meet. In Venezuela being involved with Bitcoin is very dangerous, but also a vital lifeline for survival. Venezuela was once the richest country in South America, but now it is a country in crisis.

Venezuela has the highest inflation rate in the world, and its currency is in serious trouble. Food and basic necessities are scarce in Venezuela. In fact, the situation is so bad in Venezuela that people are starving, rationing toothpaste, and saving as much toilet paper as possible (soap and toilet paper can be used to trade or barter for other basic necessities such as food and water).

Against such a dreadful and dire situation, cash strapped locals in Venezuela have been turning to mining cryptocurrencies such as Bitcoin just to get by and have enough money for food, shelter, and other basic necessities. In the cryptocurrency world, mining is essentially bookkeeping for digital transactions. When someone mines Bitcoin, they earn digital currency as a payment for their efforts.

Published on October 26, 2017
Bitcoin’s inherit risk takes on a whole new meaning in Venezuela.