How should we treat the Venezuelan Petro Crypto Coin?
Today I wanted to address the idea of country based cryptocurrency, and what this could mean to the markets overall. First let's discuss the Petro coin, and how it will be pre-mined, and that in it's self is not unusual, but the coins will be held by the government of Venezuela.
Now there are many pre-mined coin within distribution, and these coins have concentrated ownership. So this initial part is not unusual, and with this statement "The president has already set aside 5 mln barrels of Venezuelan oil in preparation, with the currency set to launch in 6 weeks in the form of an auction, as it will be pre-mined." But what is to stop this current government from just creating more coins just as they have done with their fiat currency?
You can read the article here.
Venezuelan President Maduro Calls For 10 Countries To Embrace His Oil-Backed Coin
Secondly I have to wonder what the impact will be with cryptocurrency as an industry with countries coming on board. Does this raise awareness yes, but does this coin only bring about the possibility of a ban on all crypto's within a country that uses this coin? I don't think we can eliminate the possibility that this may be the goal since bitcoin is running crazy across South America, and the peoples of many countries there use it for daily life.
So I'm curious what others think about this development since it will start this month, and we see they coins start to pop up on exchanges.
Until Next Time!
It's an interesting question to bring up. I would say that it is an attempt to recentralize the losses of decentralized currency. In general you cannot trust a government to serve the benefit of an individual. It has never happened in history to date so this will not be any different. It may be fun to profit off the coin if possible but it will ultimately fail in my opinion.
I wonder if this is just an attempt to replace bitcoin within the country with this currency. Now they would have paper fiat and know body wants and then this new crypto that comes with concerns. Bitcoin will stay as king there since they the people have trust in it because there is no central authority other than miners to some extent.
Goverments sees something good & they wanna regulate it.. They should stay off cryptos
I am Venezuelan and I recommend that you do not invest in that currency, it will be a failure
I don't need or have any want to invest in government based crypto. I was asking about the overall impact on cryptocurrency as an industry.
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