>>107311395A socialist government indulged in rampant kleptocracy and mismanaged what should have been abundant national wealth derived from petroleum production. This, combined with an American-backed banking blockade stemming from what amounts to the Venezuelan government itself smelling like a crypto-tier exist scam (see: Petro on the NEM Blockchain), an overconfidence in executive ability to manage an economy sans economists, and numerous other factors create the perfect economic shitstorm.
But at the end of the day, the value of that bolivar was decided by people trusting, or not trusting, that a competent government existed to give that dollar value. Considering the rioting and mass exodus of Venezuelans into neighboring Columbia, I'd register the amount of faith as low.
My point about gold isn't that you should go out and buy some, just that it has value based on faith. It's a hunk of metal, malleable and soft, not particularly conductive. Looks kind've nice, and can be exchanged for other goods or services since most people agree it has value. If somebody gave it to you, you wouldn't chuck it. You would either keep it, or exchange it for an item you perceive as having greater value in the present or future.
