Hedge Fund That Profited From Bitcoin Invests In Venezuela

A hedge fund that has benefited from bitcoin in recent years now believes the best investment is in Venezuela, a South American country that has been in a severe economic crisis for several years.

Since the beginning of 2022, the eyes of the world have seen a major event in Asia change everything: the war between Russia and Ukraine.

This led to a massive energy crisis, which prompted US President Joe Biden to reconsider sanctions against Venezuela, a country with large oil reserves in a nearby region.

The US government has already sent a delegation to the country and may lift sanctions, opening Venezuela’s borders, which could trigger a turnaround in the local economy.

Hedge Fund That Profited From Bitcoin Believes Buying Venezuela’s Debt Is A Good Deal

When Venezuela’s government was backed by Russia, the United States turned its back on Maduro and ended up including the country’s rulers and corporations on its feared sanctions lists.

This certainly caused a collapse in the local economy, and to try and get around these measures, Venezuela was the first country to create its own cryptocurrency, the Petro, a currency backed by the barrel of Venezuelan oil.

With Russia engaged in its war against Ukraine, the US saw an opportunity to ease geopolitical tensions in its region and Biden appears poised to lift Venezuela from sanctions.

Speaking to Bloomberg, Altana Wealth hedge fund manager Lee Robinson, who benefited heavily from bitcoin exposure in 2014, Venezuela could be the new golden opportunity for investors.

That’s because the country has a huge national debt and has issued notes, some of which are even traded in US cents today. If the country is pardoned by the US, the Maduro government can structure the debt and this investment could run into millions of dollars, the strategist believes.

Opportunity should only last until November 2022

Considered a high-risk investment, as there is no guarantee that Venezuela will organize its economy, the company that manages $500 million in assets remains steadfast in its bet.

And that could be an opportunity with the window closing soon, as the US goes through midterm elections in November, and Biden’s grassroots Democrats must make a decision on the issue, he told Bloomberg.

In South America, Venezuela was the country that first adopted cryptocurrencies as a means of payment, first in action by the people themselves, then by the government regulating the sector to try and return to the global economy.