I’ve seen some bad ideas in my day, but this has to take the cake. Venezuela has issued a new cryptocurrency called ‘Petro,’ backed by the country’s oil reserves – it has plenty of them. It also aims to create an additional coin named ‘Oro,’ backed by gold.
The idea, in and of itself, isn’t bad at all. Many citizens would love to see their fiat currencies backed by a tangible item, which they can always convert their fiat for, but (1) they would rather it not be oil, which fluctuates in price daily, is affected by political events, and is consumed, and (2) they would rather the government not be the owner of the blockchain database, which logs all the transactions made by its citizens – that’s total tyranny, and goes against everything the crypto economy stands for.
Not only am I concerned for the citizens of Venezuela, who are already living in dire conditions, what really troubles me is that Iran and Turkey are also looking to pursue this model.
In other words, three of the world’s most Anti-Dollar nations, are now conspiring to break loose from the USD system (good for them), but do it in a way, which offers other governments no oversight as to where money is funneled to. Pure Blockchain Wealth has heard from more than one credible source that the real trouble is that this new currency might fund terrorist attacks, as well as arms dealings.
The USD is not the ideal global reserve currency anymore; it really isn’t. No nation that is drowning in debt can long maintain the role of economic dominance, and the U.S. is coughing blood right now.
America is going to face the inevitable consequences of getting off their drug of choice – credit.
Cryptocurrencies were created as a means to avoid the problems of double spending, as well as find a way to transact without a central point of failure or the ongoing threat of inflationary crises. What Venezuela is offering its citizens and anyone who uses the Petro is a trap, at this point.
I would much rather own (1) a gold-backed cryptocurrency to an oil-backed one, and (2) a totally decentralized coin to a government-issued one.
The economy for cryptocurrencies is certainly anchoring in the mainstream, with Bank of America just now issuing a frantic letter to regulators, in which they express their many worries over the fact that cryptocurrencies are simply superior to what they offer.
We are in the midst of a revolution, both financially and socially. It’s important to realize, though, that in terms of monetizing the cryptocurrencies world, there’s still a long path to walk down.
As entrepreneurs and investors, we have to seize this opportunity because we’re in the early innings. Make sure you educate yourself daily, network with others, go to meetings and conventions, and find ways to add value to the community, since the rewards for being a pioneer are always greater than those that are distributed to latecomers.
We’re currently working on a new Top-Tier Report, which will focus on how to get involved in the industry, as a profession. There are many 6-figure jobs out there, if you know what you’re doing.
The cryptocurrency market usually bottoms towards the end of February and begins its annual rally after the Chinese New Year, which means we could be close to the bottom for BTC in 2018 and start to see higher prices going forward.