Reference: Rothwell, James R. "Venezuela protests: 200,000 march against President Maduro as riots and looting spread across country." The Telegraph. Telegraph Media Group, 21 May 2017. Web. 26 July 2017.
As most of you may know, Venezuela's economy is facing hyperinflation, riots, starvation, and numerous other problems. Most all of this was caused by it's governmental structure and leadership. I think the above picture effectively sums up the situation that people are facing. However, despite the horrific state of the once great latin country, there is opportunity.
This is where blockchain comes into play. Not many governments in the world are fond of cryptocurrency, but Venezuela presents the first use-case opportunity to allow for the first blockchain structured government. In theory, this would be a decentralized system organized perhaps through smart contracts and would have a national digital currency that could stabilize the country and replace fiat entirely.
If this were to occur and it succeeded, then why wouldn't the rest of the world jump on board the blockchain express? It's only a matter of time before a tangible use-case is initiated that changes the entire gut feeling of blockchain for government. The western hemisphere better catch up, because Asia and many Arab nations have purchased a one-way ticket. In the case of Venezuela, they very well could be the first nation in the western hemisphere to full adopt blockchain technology.
If you want my opinion on Venezuela, I would have to say yes. The tech industry is exponentially growing and changing our world every day. About 30 years ago we created the internet. 10 years ago we invented the iPhone. 2 years ago we measured the first gravitational waves and were stunned by the beauty of Pluto. At this rate, it may only take one successful and viral implementation of blockchain and cryptocurrency to establish the crypto renaissance, which is inevitable.
Well, we've all been on a crypto high the last couple months, watching Ethereum hit $400 and Bitcoin touch $3000. Most people were predicting that cryptocurrencies were on a trajectory to the moon. But was this all overly optimistic? Maybe in the short term.
Right now, the entire market looks like the red sea. So much for the moon predictions. Ethereum is dealing with scaling issues, Bitcoin is on the verge of splitting on August 1st due to a virtual civil war in the community, Coinbase can't handle the enormous growth in internet activity that they've been experiencing, and everybody seems to be selling all their cryptos at the same time out of fear.
All of this negativity is pulling down the market, but it isn't the end of the story. Far from it. In fact, we are experiencing a healthy fluctuation (market correction) that reflects the reality of the crypto market and the exchange of hands from bad investors to smart investors. These setbacks are normal and definitely expected. Many companies such as Microsoft and Tesla, among others, have experienced similar growing pains in the past.
One thing to keep in mind is that this is the reason why not everyone will become a multi millionaire trading cryptocurrencies. You have to be a smart investor and look at the long term. Bitcoin may split, but it is the most unique digital currency in existence and always will be. Ethereum has the support of dozens of companies, governments, and banks that see it as a tool to revolutionize our technological infrastructure in the world. Ripple is being rapidly adopted and recognized by big banks all over the globe and will eventually replace the SWIFT system. Siacoin will blow away Cloud storage providers. Antshares (NEO) will create a smart economy for China. Dash will compete directly with companies like Paypal for peer-to-peer payments.
I could go on and on, but you get the picture. The short term might be ugly today, but the long term looks very promising!