In the shadow of hyperinflation, Venezuelans are reaching for flakes of gold – navigating between micro-units, uncertainty, and the collapse of their currency system.
In Venezuela, a remarkable alternative has emerged in response to the complete devaluation of the national currency: in regions like El Dorado, people pay not with banknotes but with small fragments of gold – sometimes as little as 0.01 grams or even less. france24.com
A Currency in Free Fall
The Venezuelan Bolívar has been in free fall for years: hyperinflation, devaluation, and a severe crisis of trust have led citizens to watch their money lose value at lightning speed. Wikipedia
In some areas, prices are already quoted in tiny gold flakes.
Deutsche Wirtschaftsnachrichten (Deutsch)
Gold as Daily Currency – With Struggles
Instead of paper money that devalues by the day, some Venezuelans now hold tiny pieces of gold in their hands – using them as a direct medium of exchange in daily life. For example: rather than paying for a coffee with Bolívares, a small amount of gold is often enough. Reports suggest people are using gold flakes to pay for meals or services.
But it’s not as simple as it sounds. Trading in 0.0x grams of gold raises various practical and psychological challenges:
- Weight uncertainty: At such tiny weights, every fraction matters. Who weighs it accurately? Is the flake clean and authentic? Who has precision scales or trusts the seller?
- Trust and measurement: A thin gold foil or flake might make sense mentally, but in practice? Both parties need to accept the weight and value – without guarantees.
- Transport and safety: Carrying small amounts of gold sounds easy – but in a country riddled with instability and armed crime, it can be risky. How do you store and protect gold dust or flakes?
- Divisibility: When a room costs 0.5 grams – how do you split that? What’s lost in the process? Who ensures fairness?
- Stability vs. volatility: Gold is stable, but at microscopic scales, purity, weight, and trust are critical. A gold flake is only worth something if someone accepts it.
- Everyday logistics: Whether it’s a laundromat, coffee shop, or guesthouse – every transaction must match grams to service. Prices vary. Services vary. Gold must match demand.
Real Scenario: Coffee, Room, and Weight
Picture this: You enter a small café in a Venezuelan town. A cup of coffee costs 0.01 grams of gold. You pull out a minuscule foil or flake of gold. The vendor weighs or estimates – and accepts it. But the exchange rate fluctuates – tomorrow, your gold might be worth more or less.
Or you’re renting a room in a modest guesthouse. The price? 0.5 grams of gold. Is your gold pure? Does the owner trust your weight measurement? How do you carry it safely? Suddenly, a transaction becomes a test of trust, logistics, and security.
Between Tradition and Innovation – The People’s Attitude
For many Venezuelans, this is a "last resort" – but also a symbol of self-reliance. When the currency collapses, something tangible must step in. Gold isn’t viewed as a long-term investment here – it’s an everyday survival tool.
Still, the risk remains: Those who trade in gold flakes rely on personal trust, local networks, and an intuitive sense for weight and value. In an unstable society, any small irregularity becomes a major vulnerability.
Germany: Different Reality – Same Motivation
In Germany, the situation is different. Gold is not yet a daily currency. But those who buy gold as protection against a collapsing Euro are often viewed with suspicion – associated with “extremist” or “conspiratorial” views by authorities.
Despite the cultural gap, the underlying motive is the same:
People want to secure value, protect against currency debasement, and use non-state-dependent assets. In Venezuela, gold is used in everyday transactions. In Germany, it's a form of investment – but the goal is shared.
Looking Ahead: Blockchain as the Bridge – and Our Proposition
Here’s our key thesis:
If Venezuelans are already using gold flakes instead of money, this clearly shows the need for simple, trusted alternatives to fiat.
Now imagine: What if these tiny gold units didn’t need to be carried physically – but could be traded digitally via a native blockchain?
Infinity Economics (XIN) is one such native blockchain:
- Independent from debt-based fiat systems
- Supports native digital assets
- Allows division into micro-units
- Enables secure, fast transactions
- Real value, digitally mapped – free from state control
Instead of carrying 0.01g gold to a café, one could send a digital token instantly – tied to real gold, transferable, and secure. No physical risk. No intermediary. And no state censorship.
Only native blockchains offer real inflation protection – because they don’t rely on external platforms or derivative tokens. They are their own economy.
Conclusion
Venezuela shows us: When currency collapses, people turn to tangible alternatives – even gold flakes. But this approach brings effort, risk, and uncertainty.
Now imagine combining that principle with secure digital technology. Native blockchains like XIN could handle real-world value – flexibly, globally, and without inflation.
For you as a reader:
Think about how your wealth is protected – not just physically, but digitally. Venezuela is not a dystopia – it’s a preview.
Systems based on trust, divisibility, and real value are no longer theoretical. They’re necessary.
