Venezuelan Petro is a cryptocurrency that has always raised many concerns since its inception.
It is not surprising that many people do not know what this economic exchange unit is and how it works, as many users both inside and outside the country do not take this virtual currency seriously.
It was initially said that the petro should be covered by the country’s oil reserves and that its value would be approximately $ 60. However, due to its instability, it is uncertain whether any of these aspects are real. which makes residents uncomfortable.
Is the collapse of the Venezuelan Petro imminent?
A Venezuelan user confirms on Reddit, a social platform where users can add text and post publications so that other users can vote according to their preferences, and that the Petro quotes at a price of less than $ 8. The PTR / VES trading couple, added to its platform by the Venezuelan crypto exchange Antwerp Coin is one of the first options for the sale and purchase of the state-owned cryptocurrency Petro with Bolivar on the national market. The conversion of this VES to USD reflects that a Petro is currently valued at USD 7.3. Due to the collapse of this currency in Venezuela, this value can fall below USD 7 at any time.
Today, the free market shows that this currency has very little value both inside and outside the countryAlthough some Venezuelan traders accept this currency, the majority tend to Bitcoin and Ethereum for their transactions, so the cryptocurrency Petro remains a low-value currency.
The real value of the petro has yet to be determined. despite the fact that it is listed on the stock exchanges; It is obvious that the Petro is in a very bad condition as it has lost a lot of power. However, it is necessary to observe how this situation develops.
Origins of the Venezuelan Petro and how it works
Since the advent of Bitcoin, the use and exchange of cryptocurrencies has been an instrument that society is implementing with increasing strength due to its undeniable popularity, accessibility and trust. The socialist government of President Nicolás Maduro added the decision to work with cryptocurrencies and to launch the cryptocurrency Petro to the severe economic crisis of the Venezuelan state. This would be a new source of finance for the country as foreign currency inflows have decreased due to the drop in oil prices and low and low production.
The main goal was to create a digital and transparent currency alternative to the dollar for winning countries far from the US-controlled world financial system.
Petro is a token or virtual currency that focuses on blockchain technology. This is covered by the reserves of various Venezuelan natural resources such as oil, gas, gold and diamonds.
Each petro would have the price of a barrel of oil as a reference value, which does not mean that each petro corresponds to one barrel, but that the value of the petro is related to that of Venezuelan crude oil.
First, the Venezuelan government said that it was necessary to register on the official website to request the petro.where members participate in allocation auctions. Thus, the exchange could be made for the national currency, which is the bolivar or another cryptocurrency.
Unlike Bitcoin, a completely decentralized cryptocurrency because it doesn’t belong to anyone and is not regulated by governments or banks, The petro is centralized by an intermediary, in this case the government of Venezuela.