Bitcoin use in Venezuela and Brazil is increasing, but the populations use the currency in different ways.According to Rodrigo Souza, core developer at Blinktrade, the exchanges in both countries have more than 10,000 registered users.The Brazilian exchange is FoxBit.FoxBit is a result of partnership between FoxBit Serviços Digitais and BlinkTrade Inc, a technology provider for Bitcoin exchanges around the world.According to Blinktrade, the majority of bitcoin users in Brazil are either using bitcoin to  invest in the technology, to trade for profit, or to purchase bitcoin in order to trade them for  U.S.dollars, often because they have a bill to pay in American dollars or plan to travel).In Brazil, there are four other bitcoin exchanges leading Bitcoin use in the country.The people of Brazil are generally more skeptical and curious about Bitcoin than those in Venezuela, according to Souza.. “As of now,” says Souza,”Brazilian regulators said that they won't regulate Bitcoin because regulating also means that the government is placing a stamp of approval; they also believe the technology is currently in its early stages and doesn't represent a risk to the financial system.” The central bank of Brazil in the past has said that bitcoin currency is too volatile and not backed by any government.

Additionally, the Brazilian tax authorities have stated that traders should declare their bitcoin and should report any capital gains.Of the five largest Brazilian banks,  three of them haven’t announced their position on bitcoin.The two other banks are very against bitcoin, and have shut down or blocked bank accounts for trading bitcoin.The Venezuelan exchange SurBitcoin is a result of partnership between VK Inversiones/Vipples and BlinkTrade.“Venezuelans on the other hand, are a completely different story.In order to understand Venezuela we have to understand that our numbers only reflect 10 percent of what is going on in Venezuela,” says Souza.Venezuela is home to a vibrant bitcoin community, where people often trade goods and services for bitcoin.“Bitcoin is generally viewed by Venezuelans as a positive innovation,” adds Souza.“Venezuela has much bigger problems to solve in their country than their Brazilian counterpart,” Souza said.Venezuelan government officials have never communicated their stance on the technology, but Venezuelan law is very clear on its definition of money, and bitcoin doesn't fit in that definition.

Bitcoin is considered property rather than money in Venezuelan law.SurBitcoin was approached by Venezuelan authorities under the allegation of illegal money exchange.ethereum poloniex“Since Bitcoin is not considered money under Venezuelan law, we were fine,” says Souza, “They did not take further action.” Since the creation of SurBitcoin Exchange in August of 2014, SurBitcoin has given new users 100 bolivares worth of BTC upon opening an account in order for them to learn how the technology works.bitcoin fog not workingIn 2014, the 100 bolivars represented close $1.30.litecoin asic release dateToday,15 months later, SurBitcoin still provides users with 100 bolivares, but that amount is now worth $0.11.dogecoin pay

The average salary at that time was close to $250 per month.The average salary in Venezuela is close to $20 per month.Even ATMs in Venezuela limit withdrawals to 20,000 bolivars, or about $22 USD at time of publication.ethereum peers“But since the Venezuelan economy contains such strong price controls,” says Souza,  “this also means they pay the cheapest electricity bill in the planet.doge coin suchWe know a mining farm operator who has close to 1 petahash  of power and his electricity bill is close to $20 per month.bitcoin bancontactThe average electric bill for 320kw consumption is close to 6 cents.bitcoin peak worthThis means that  a person mining bitcoins with old equipment at home makes more money than an engineer working 160 hours a month.” This makes it a fruitful environment for mining bitcoin.bitcoin plus service unavailable

Most bitcoin sold in Venezuela are either mined in Venezuela or sent by Venezuelans living abroad to help their families.“I would say that 10 percent  of our 10,000 users are de-facto bitcoin miners.Additionally, a lot of people buying bitcoins in large quantities on SurBitcoin are buying because it is the only way for them to import new miners,” says Souza.Additionally, many of SurBitcoins’ users are people turning their savings into bitcoin.Many of their users buy bitcoin in very small portions consistently in order to save money.Since the only way to get U.S.dollars in Venezuela is through the black market, there are many scammers who take advantage of the situation to rob people.“If authorities find out people are doing this, they will not stop the operations, but rather ask for a bribe to pretend they never saw it….purchasing bitcoins turns to be the only safe, legal investment in Venezuela where people can safely buy using their bank account,” Souza said.Does the Ethereum Rally Validate Cryptocurrency Potential?

Bitcoin, perhaps the most famous cryptocurrency to date, has enjoyed more than a doubling in price this year, even after last week’s reversal that wiped off nearly $4billion of the currency’s value.Ethereum, an open-source blockchain that can be used by anyone as a decentralized ledger, has its own cryptocurrency called ether, has also grown wildly in popularity, with some analysts expecting that ether and the Ethereum network will surpass bitcoin in value and functionality.Ethereum has recently garnered global interest due to a steep price increase, when it hit $227 last week, a 2,747.9 percent increase since January 1, 2017, before starting a noticeable correction.It started the year trading at only $8.Ethereum technology was designed to support smart contract applications and to automate complicated physical and financial supply chain procedures that involve multiple parties.Among the newest companies testing its applications are aircraft manufacturer Airbus and John Hancock Financial.

JPMorgan Chase, Bank of New York Mellon and Microsoft were among the firm’s early backers.According to research firm Market Reports Hub, the global blockchain technology market will expand 11-fold by 2021, from $210.2 million in 2016 to $2.3 billion in 2021.However, the challenges to the industry have kept some analysts bullish on cryptocurrencies.Challenges to the Digital Currency Market There are several disputes plaguing the digital currency market today.First is the issue of the degree to which public or closed access should be allowed on different blockchains.Most corporations and banks which are concerned about security and compliance favor permissioned blockchains which require granted access for entry.Technology experts tend to favor “permissionless” models which are considered to be less secure, but to allow the full network of benefits to become available.Those in favor of the “permissionless” model argue that the success of the worldwide web is so pervasive because of its open model, and that such fluidity is a requirement for blockchain technology to prosper.

The second stumbling block facing all digital currencies, including Ethereum and bitcoin, is the psychological one; the fact that skeptics are concerned that digital currencies will act like the dot-com bubble, and that overinflated prices will be reduced to pennies on the dollar.To overcome this obstacle, regulators will need to convince uses that blockchain networks are safe, and the networks themselves will need to provide reasons and proof that they are here to stay.Finally, it must be noted that blockchain digital currencies are built upon networks that share market information, and large companies are fearful that this collaborative effort could compromise both security and growth.To this end, some large organizations such as Goldman Sachs and Morgan Stanley are actively pursuing their own blockchain projects, which could compromise the growth and future success of existing market leaders.Catalysts for Success On the other hand, the expansion of the cryptocurrency industry, whatever the reason is, may be advantageous for current industry leaders who can position themselves as solid, reliable opportunities for investors and users.

Japan’s government recently recognized digital currency as a legal form of payment, paving the way for additional countries (and private industries to do the same).Research about digital currencies has exploded recently, with traders worldwide becoming interested in the opportunities and curious about how things work, and many willing to invest small and medium sized sums as a test.There’s no way to know how the industry will evolve, but if history and current global sentiment are any indication, the sky is the limit.Currency Pairs BTC/USD Daily Market Analysis Motor Car Manufacturing Industry Joins Clamour For Soft Brexit EUR/USD and GBP/USD Forecast WTI Crude Oil and Natural Gas Forecast S&P 500 and NASDAQ 100 Forecast USD/JPY and NZD/USD Forecast Sterling Under Pressure after BOE Read More: Forex News | Technical Analysis | Fundamental Analysis Email: Submit Learn More 0 Registration is required to ensure the security of our users.