The narrative that Venezuela is a leading country in crypto adoption has been put to question by one prominent analyst. With most countries looking into crypto, they are seeking financial freedom and censorship-resistant money, but with Venezuelans, they are majorly pushed by poverty.
Among the hailed coins to be adopted in the country include Dash, Bitcoin, and the state-owned Petro. But are they really? According to analyst Peter McCormack, citizens convert them to dollars ASAP.
Venezuela Use Case Is A Myth
Venezuela is a third world country. A third world country that is in deeper trouble with economic degradation and US sanctions breathing down at citizens. A number of projects like Dash and Bitcoin believed this set the country up for crypto adoption. They distributed the coins, pushing for adoption. But was it the right kind of adoption?
McCormack believes that poverty in the country means citizens are only looking for food and shelter. They will take (adopt) any free coins given to them. Be it, the national Petro or any of the coins distribute through airdrops or giveaways. But, with the sole purpose of converting them to dollars as soon as possible.
Venezuela is not the “crypto” use case you have been told:
– Nobody gives a shit about censorship resistant money
– People want to eat, they want dollars
– BTC SoV for a select few
– MoE is a myth pushed with incentives (Dash, BShit)
Ignore shitcoin propaganda in Venezuela
— Peter McCormack (@PeterMcCormack) February 13, 2020
Projects selling the narrative that their coins are being adopted in the country, the analyst believes, are just trying to create hype and pump prices.
Back in 2019 when Dash was pushing for adoption in the country, Dash CEO stated that the cryptocurrency was the most used crypto in the country a theory that was quickly debunked.
For some of the projects, the cryptocurrency giveaways are intended to expose new users to the new technology. They can then see the benefits and the use cases of the cryptocurrency and buy more in the future.
What About The Petro?
The Petro is a state cryptocurrency backed by the country’s oil. It was launched in 2018 and hailed as the answer to US sanctions. However, since its launch, not all has gone to plan.
The coins are not as widely adopted and the president has resulted in ordering Venezuelan Airlines to pay for fuel using Petro. The project has by large failed due to the failing economy proving that crypto adoption in Venezuela could be a lie.