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Inform Venezuelan Miners?


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So I've been seeing a lot about how Venezuelans are mining Bitcoin/Ethereum to supplement their income. Now, mining Bitcoin isn't very profitable at a small scale due to electricity costs... which Venezuleans seem to not have to worry about (essentially)... but due to the difficulty of mining the larger cryptocurrencies I was thinking surely it would be more profitable for them to mine an altcoin? Especially since they are mostly using GPUs to mine, cos they don't exactly have the startup capital for a bunch of ASICs. The government is cracking down on their mining efforts currently, but they are continuing to mine... just stealthily. (i.e. no major warehouse setups I would imagine)

I have a feeling that Denarius is a perfect fit here (please correct me if I'm wrong) since it is A) ASIC resistant B) CPU mineable C) You can stake your coins to gain further coins. I know a problem would be if a bunch of people start mining it to dump it for cash could negativley impact the price, but I think DNR is capable of replacing the Venezulean Bolivar as a day to day spending alternative. It has it's super-fast transaction times, stealth addresses (hide from the government) and doesn't have to be denominated into 8 decimals... yet ;) The state of Venezuela is in a dangerous place, they are approaching 1600% inflation of their currency... giving them a crypto alternative to use (that just so happens to sound like "Dinero") could quite literally liberate them, no? If they are mining it to use as currency, rather than mining it to turn into another currency, the value will only increase surely?

This is just a shower thought, so let me know if I'm wrong or if I'm delusional... I'm open to the discussion :D But if you never plant seeds you'll never get trees.


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"giving them a crypto alternative to use (that just so happens to sound like "Dinero") could quite literally liberate them, no?"


And how exactly can we make the Venezuela's government accept DNR as an alternative currency? Except you know Maduro, then we are set to go mate haha

Trust me, crypto inflation can be more than a fiat currency's one. This game is a full gamble, you can invest in something that can make you millionaire in short term, but with the same possibilities you can get broke from this.


" If they are mining it to use as currency, rather than mining it to turn into another currency, the value will only increase surely?"


No, the price only increases if a currency,metal, etc has more buy orders than sell orders in Exchanges (ONLY). I'm a miner, imagine that I give you the mined DNRs and you give me silver . The pair Denarius/Silver (and reverse) remains untouched, since this trade is between us (or between everyday people). The key here is the Exchanges , which are the ones setting the price. All Venezuela's citizens are not miners, so what is going to happen to those who don't mine it? They need to get DNRs somehow. Here there are two options: a) buy DNR from a miner or b) buy DNR from an Exchange. In a) the price remains unchanged , while in b) the price will go to moon (supposing the 90% of the citizens go to Exchanges and buy DNR to use it as their main currency). That's how the value will only increase surely.


It's very early for the Community to think of ways to tell president Maduro about DNR (haha), for now just mine it and hold it, because sooner or later due to its low total supply one DNR may have a fair enough value , regarding its features.

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I see it more as a way for them to get bread without having to stack up a crapload of cash - like Zimbabwe. It's a matter of them having the alternative asset to use instead of their now basically worthless cash. Atm they are mining Bitcoin and Eth at low amounts with CPUs and GPUs, and converting that crypto into fiat to buy their food and supplement their income. I'm suggesting a suggestion that they do away with the bolivar and stick to a form of crypto, since their money is worth less than many cryptos currently, and the reason I mentioned DNRs stealth aspects is cos, ideally, "the man" wouldn't know too much about it. The people didn't get themselves into this mess, their government did.

To answer about how average joes get DNR - through trade? If the first miner in Venezuela to mine DNR ends up with like 1000 or something hypothetical... he still has to feed his family, so he's now willing to trade some of that DNR to someone who doesn't mine... but has food. Now he has 800, but keeps mining, and the shopkeeper has 200 to work with. The shopkeeper needs beer so he gives someone 100 DNR for beer and so on and so on. This is the basic idea of any finite currency isn't it? That it gets spread around through the buying and selling of goods and services? Once scarcity increases so does price, or not? Like gold, the people who own it aren't ONLY those who dig it up. Obviously this system only works if other people are also willing to accept it as a currency or of having intrinsic value (like a food value). I get what you mean by the markets, but a market can be anywhere and involve nearly anything and you don't really need the government to accept it, if everyone on earth decided tomorrow that shiny shells were valuable (for whatever reason)... people without them are suddenly broke.

Like I said, it's a suggestion. I see cryptos as a way to institute a full global financial revoloution. Obviously many will fail, but I can see DNR making it a good distance ;) The main reason I thought of this, is that with my crappy GPU setup it's more profitable for me to mine DNR atm than Bitcoin (same with lots of altcoins of course... but I like DNR)

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  • 3 months later...

In Venezuela as you say if it is an option because in Venezuela electricity is too cheap and is very profitable, most of them only mine large currencies like bitcoin and so on, but as you say you would be more profitable to mine Dnr since it is more convenient for transactions.

Edited by Carlos Benjami
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