On 7th of March 2019, the power grid of Venezuela got shut off leaving behind the majority of the Venezuelan states under ‘no electricity’ condition for over a week. As the reports state, on 14th of March 2019, the electricity has been restored across most of the states within the country. Nevertheless, during the week long severe blackout, the Bitcoin trades on the Local Bitcoins which is a peer-to-peer exchange plummeted by 40 percentage.
There have been a lot of sufferings for the Venezuelan residents for quite some time now as the rate of the nation’s inflation has crossed a humongous figure of 2,688,670 percentages as of January 2019. The Venezuelan fiat currency known as the Bolivar has been termed worthless as there are several instances of banknotes being strewn across the streets of Venezuela within the capital of Caracas and the other areas. Thus, on March 7th, the country has experienced the major blackout that lasted for a week and literally caused a lot of inconveniences to the residents as much of the region’s telecommunications got seized creating a lot of difficulty for the individuals within the country to establish a communication with the outside world.
Few weeks prior to the blackout, the BTC trade volumes on the Local bitcoins in the Venezuela have risen to all time highs of 25 billion Bolivars or $7.5 million USD. During that period there had been many headlines and the editorials about the Venezuelans probably running to Bitcoin as a barrier against the hyperinflation. On 7th of March, the same day of the blackout, the trade volumes of Local bitcoins nosedived to 40% to a low of 14 billion bolivars that is equal to $4.2 million USD. There have been tweets regarding this from the author of Caracas Chronicles named Carlos Hernandez.