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Petro Cryptocurrency – An Introduction Guide
Vanuzealan Petro Cryptocurrency is one of the many forms of digital currency. Cryptocurrencies have been previously predicted to replace the local currencies due to their increasing value. Such a situation is currently being observed in Venezuela. The local government has introduced it as an alternative to the local Boliver Fuerte currency since the country’s economy is shaking down to destruction. Where some of the government officials and locals are seen in favor of this initiative, the opposition is highly regarding it as an illegal form of money and an easy framework for corruption. Getting all these associated factors straight is one way of achieving an understanding regarding this cryptocurrency.
Current situation of Venezuela
Venezuela is a land of oil and mineral reservoirs. Almost over 50 percent of the total GDP of the country depends upon oil exchange and selling to the foreign countries. Venezuela once was one of the Top 5 wealthiest states in 1950’s when it came to per capita income. However, after the reign of Hugo Chavez, the country has gone into a big state debt. This has resulted in a sky-rocketing increase in inflation. The current President Madura has held on to Chavez’s policies resulting in worsening of the situation. Now, the country’s local currency, Boliver Fuerte, is worth nothing and trading through it results in more loss than benefit.
Need for petro cryptocurrency
Since the local currency, Boliver Fuerte, of Venezuela has plummeted to a large scale, the economic and political situation of the state has gone to stake. A wave of anxiety and worry has blown across the economically miserable public of Venezuela. President Madura introduced and launched an alternative cryptocurrency in December 2017. This currency has been made available for use in February 2018. The reason for legalization and introduction of Venezuelan Petro Cryptocurrency is a safer alternative to country’s currency. The government has introduced this to compensate for the country debt and controlling inflation.
Petro crypto-currency worth
Vanuzealan Petro Cryptocurrency has opened new financial avenues in the international market. Attracting some investors from Saudi Arabia, Turkey, UAE, etc, has greatly helped in stabilizing the country’s economic and social situation. Initially created to prevent and overcome US and EU sanctions, Petro has benefited the country with a total of $735 million within 24 hours of the February pre-sale. One Petro token, labeled as PTR equals a cost of one oil barrel as this currency is backed by oil reserves. The approx amount then comes out as 1PTR equals 60 dollars. Government is also offering subsidies on electricity bills and discounts on other goods and services.
Petro crypto-currency mining
The mining of Petro is done via pre-mining sessions. Just recently almost 100 million Petro tokens were released. Presale took the 38.4 percent, 44 percent of Petro was available on the crowd-sale. The remaining 17.6 percent has been reserved the Superintendent of VIBE. VIBE is a land destination for institutional, political and legal matters.
Petro cryptocurrency VS Other cryptocurrencies
Unlike the Bitcoin mining, in which Bitcoin is considered as an asset and not an exchangeable currency, Vanuzealan Petro Cryptocurrency is a replaceable and exchangeable currency with value. It has been expected to have a token with the name of ERC20 which will become a part of Ethereum blockchain.
Doubts and fears
Despite the increasing popularity of the Petro, some oppositional organizations have called it Government’s way of hiding the stolen money. The opposition also thinks that it is an illegal way of earning money and that every investor will regret investing in it. Also, the business-men are not sure whether to settle for Petro or not yet.
Vanuzealan Petro Cryptocurrency is a gateway to future money-innovation if it works as expected. The mining is currently under process.