100-hour blackout in Venezuela also affected the cryptocurrency community
The general collapse that has caused the most important blackout in the history of the country is reflected in the collapse of the exchange of bitcoins and the fall in the value of the token of the game Runescape.
It is the most important blackout in the history of the nation that has brought as consequences the lack of water, the suspension of transportation and the collapse of the national health system.
Communications and Internet connection also suffered failures at the national level. By the third day of the blackout, 80% of the country was disconnected, leaving thousands of families incommunicado. The data, provided by the NetBlocks Internet Observatory network, also indicated that during the first day of the blackout only 2% of the country had an Internet connection.
The recent electric interruptions that still keep the Latin American country paralyzed, also caused the fall of the digital market trade. The main cryptocurrency, Bitcoin, suffered a sharp drop. Also, during the blackout, the Runescape video game virtual market was affected.
Runescape miners offline
In a country in crisis, the commerce of videogame products is an economic alternative that can allow income higher than that of a traditional job. In Runescape, the game MMORPG (Massively Multiplayer Online Role Playing Game), the illegal practice of selling some products can provide income of up to USD $ 25 per week.
Within the illegal economy of videogames, hundreds of Venezuelans are dedicated to mining game tokens and then selling them inside or outside the digital space. These coins can be exchanged for products within the game or for real money, such as dollars or bitcoins.
Some fans of Runescape were surprised when, 48 hours after the blackout, some products began to be scarce after the electrical failure in the Caribbean country.
In a Reddit thread, a user posted a graph showing the alleged fall of the “Dragon Bones” trade (the virtual token). Also, some players could also observe how the price of the virtual product would have risen after the fall of the supply in the market.
In the same line, a user suggested that the virtual miners of Venezuela represented 70% of the market of certain videogame products.
We already knew that in Venezuela there are people who work playing “Runescape” where they spend all day harvesting virtual gold to sell them in foreign currency to other players (more profitable than a job). The blackout caused an economic crisis in the virtual market of the game.
Bitcoin trading went off
After Venezuela broke its record of transactions in the p2p LocalBitcoins exchange platform, last February, the Bitcoin trade reflected a significant drop.
The general blackout affected the country since Thursday, March 7. On that date, the platform registered a volume of USD $ 1,057 million in BTC. For the next day, the figure fell significantly to USD $ 183 thousand. The main cryptocurrency registered the lowest transaction volumes on March 10, with USD $ 173 thousand.
During the first week of March, Bitcoin’s trading volume reached 1,953, according to data from CoinDance. A data that indicates that, compared to the week before the blackout, the volume of bitcoins exchanged in LocalBitcoins was reduced and only 1,143 were exchanged. This is less than half of the bitcoins exchanged the first week of February, when 2,487 bitcoins were traded.
In recent years, Venezuelans have adopted cryptocurrencies as an alternative to the economic crisis and the devaluation of the bolivar. Venezuela is among the main bitcoin exchange countries according to the trade records of the LocalBitcoins platform. In fact, it is the second worldwide after Russia.
Among the 30 million affected by the blackout are the users of digital currencies.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.