Venezuelan Bitcoin Birth Beats Gold in Hyperinflated Economy

By Luke Flowers – Crypto Specialist

A historic moment took place when a Venezuelan man paid for the medical costs of his son's birth using most of his Bitcoin savings, as detailed through CNN. The man, who had been buying Bitcoin over a period, speaks of the traction the technology has gained. Most consider it to be a universal human right to have adequate healthcare, though sadly only a few can afford it in countries that have experienced high inflation.

Jose Rafael Pena explained the payment process, which took only a day to clear, and aims to give his newborn son the best possible start of his life. This act also proves that buying Bitcoin as a medium of exchange is better than gold itself:

Pena goes on to explain that Bitcoin has been an important asset in his life which has allowed him to fight the countries hyperinflation. By choosing to buy Bitcoin instead of saving in the Venezuelan Bolivar has allowed Pena to save money and pay large sums in a matter of hours without having to travel and compares his endeavour to that of gold. The process would be much longer and more difficulty to sell the equivalent in Gold.

Using the accumulated Bitcoin over the last two years, Pena was able to send his wife to a private clinic in the capital.

In Venezuela, the minimum wage is said to be about $16 a month. The amount earned in a month is dwarfed by clinic fees which can be charged up to $1,500.

Using LocalBitcoins, Pena was able to sell Bitcoin into bolivars at the last possible moment. The process is usually complex due to the red tape imposed by Venezuelan banks.

The exchange took about a day to clear, which Pena thinks is impossible to do with gold. Though selling Bitcoin to the open markets through different exchange platforms can be much quicker.

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