Cryptomania Sprouts in Chile as Virtual Green Beans Jump 70,000%

(Bloomberg) -- Chile’s benchmark IPSA gain of 32 percent this year was pretty good. But it pales in comparison to the “chaucha,” which has returned 70,000 percent in two months.

The cryptocurrency -- translation: “green beans” -- was created in Chile over the algorithm for Litecoin, and began trading in October at one peso. It’s now at about 697 pesos, according to prices on Orionx.io. The wild ride has seen prices swing between 0.3 and 1,000 pesos.

The chaucha, also a way to refer to a small amount of money, was made by developers Cesar Vasquez and Camilo Castro. The green bean currency seems to have staying power where others, like the now-defunct Chilcoin, have been ephemeral.

So far, 1.5 million chauchas have been mined with a limit of 123 million, Vasquez said in an interview via Whatsapp. Facebook and other social network groups allow people to buy and sell stuff using the cryptocurrency.

Chaucha buyer beware: volatility remains rampant. The of Bitcoin has fallen almost 30 percent this week to about $10,000 after reaching a record $19,511 on Monday. Litecoin has fallen as much as 43 percent.

"Obviously, there are cryptocurrencies with s that look high for their use, but I don’t think it’s a bubble, because every day there are more and more people learning and using these currencies," Vasquez, 27, said. "There is speculation, but that doesn’t diminish the of the techology involved."

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