Venezuela’s Controversial Petro Cryptocurrency Is Now Officially on Sale

John Vibes
  • After many delays, the Venezuelan government's controversial fiat cryptocurrency, the Petro, is finally on sale.
  • However, the currency may struggle to find market share among so many trusted and decentralized alternatives.

After many delays, the struggling Venezuelan government has finally begun selling its fiat cryptocurrency, the Petro. Last month, Venezuelan officials issued a statement announcing that the currency was listed on some of the world's largest exchanges, but the listing was nowhere to be found, and the government was silent about the project until the new round of announcements this week.

According to Venezuela’s vice president of the economy, Tareck El Aissami, the Petro can now be purchased directly from the Superintendency of Cryptoassets and Related Activities (Sunacrip). However, the launch is already off to a rocky start, as the official wallets have been removed from the Google app store, and are no longer available through the Petro website. So far, most of the support for the Petro has come from local politicians, some of whom were photographed purchasing Petro at Sunacrip’s headquarters.

After the purchases, the politicians were given certificates of ownership and answered questions for reporters.

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Petro Backing

The government of Venezuela insists that the Petro will be backed by oil, which if true, could prevent the government from excessively printing money and devaluing the currency, a policy which has generated the current economic crisis in the country.

Petro’s recently released whitepaper specifies that the currency is backed by a portfolio of gold oil and diamond. It is important to note that the public has lost significant trust in the Venezuelan government and its central bank as a result of the hyperinflation crisis, and the sloppy roll-out of the Petro. Moreover, many Venezuelan citizens have already become comfortable using more trusted and decentralized cryptocurrencies such as bitcoin (BTC), bitcoin Cash (BCH), and dash (DASH).

Ironically enough, Ethereum developer Joey Zhou pointed out last month that the whitepaper for the Petro seems in fact to be a “blatant Dash clone.”

Venezuelan president Nicolas Maduro claims that all oil purchases in and out of the country will be paid in Petro, which could be where the most popular use case for this blockchain if it is rejected by the citizens. Venezuela is one of the world’s top exporters of oil, so if they were able to require foreign buyers to trade with them in Petro, it has the potential to turn the crypto into a valuable asset; For now however, it seems that this is a risk not many seem willing to take.

Weekly Newsletter

Bitcoin Price Up Over 17% in 24 Hours: BTC Emerges From Its One Week Hangover

After the wild party that ended with the Bitcoin price reaching $13,813―its highest level in 2019―on June 26 (19:00 UTC), came the one-week hangover that took the price down all the way to $9,782 on July 2 (07:00 UTC). Now, though, the Bitcoin price is looking a lot healthier, having gone up over 17% in the past 24-hour period.

First, here's the two-week price chart that illustrates what a rollercoaster period this has been for Bitcoin, the rise from $9,155 on June 19 (06:00 UTC) to $13,813 on June 26 (19:00 UTC), the fall back to $9,782 on July 2 (07:00 UTC) and the rise to $11,566 (05:30 UTC) on July 3:

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And at the time of writing (July 3, 06:15 UTC), as you can see in the 24-hour price chart below, Bitcoin is trading at $11,455, up over 17% in the past 24-hour period:

BTC - 24 HOUR CC CHART - 3 JULY 2019.png

Currently, the total reported market cap for all coins/tokens is $311.5 billion, while Bitcoin's market cap is $205 billion.

Although Bitcoin's price is still down 43% from the all-time high (ATH) it reached in December 2017, it's year-to-date return on investment (ROI) is an impressive +211.36%.

All the other coins/tokens in the top 30 are currently in the green. Here are how some of the most popular altcoins are doing at the moment:

Altcoins - 3 July 2019.png

The three biggest gainers (with respect to USD) in the top 30 (by market cap) are:

  • #15 Chainlink (LINK): $3.74 (+12.30%)
  • #21 Tezos (XTZ): $1.12 (+28.60%)
  • #24 Maker (MKR): $655.92 (+13.81%)

As for what the top crypto analysts and traders think about Bitcoin's latest price action, here are a couple of reactions:

 

Featured Image Credit: Photo via Pexels.com