Can I sell bitcoin to Venezuela from Canada to make a profit?

[Aldumbell]

Or, for the sake of that matter, any two markets that have a gap in Bitcoin price that can be channeled into profit.

[Mike88]

If that were possible the investment professionals would have sussed that out by now.

[theogJ]

This is an arbitrage scenario. You buy an asset in one market and sell it in another market, making a profit in between. That’s the simple scenario, anyway. Are there arbitrage opportunities between international markets? Yes. But the real world is messy.

The most prominent issue is the exchange rate between VEF (Venezuelan bolivar) and CAD. If the exchange rate stays steady at about 7.66 VEF to 1 CAD, and there is very high demand in Venezuela, perhaps. You’d have to sell whatever BTC you bought at CA$1 for at least 7.67 bolivar. With BTC at 11,000 CAD, you’d have to sell it on an exchange for ~85,000 VEF. Check the exchanges to see the going rates.

You also have to look at your path. If you’re doing it in unregulated markets, there is more potential for arbitrage. Buy in cash in Canada and sell to people on the ground, for cash, in Venezuela. If you’re using exchanges, though, they have their own fees.

Then, once you sell the BTC in Venezuela, you need to get your money back into CAD (assuming this is the base currency you want your profits in).

Instability in Venezuela or the nationalization of the industry could seriously derail your plans, though. So, is it possible? Sure. Just make sure your exchange rates and fees are good and you have a good, clear path to transmit between countries.

James Smith,

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