After the surprising drop in oil prices this Monday, it has sparked great interest and curiosity that the Venezuelan cryptocurrency Petro (PTR) has not suffered price losses. even though it’s a currency anchored to the oil value.
In an upside-down world, the business owner has to pay the customer to take the product because there is very little demand for a virus that threatens to turn the global economy upside down. This is exactly the mess that has been going on since the beginning of the week.
Recall that the WTI suffered an unprecedented historical collapse on Monday, declining 305% due to many factors, one of which was the coronavirus pandemic that led to the collapse of the crude oil. Although it recovered after falling to minus zero on Tuesday, it remained historically low.
Oil spill affects oil countries
The situation particularly affects oil countries such as Venezuela. The really strange thing is that this country is funding cryptocurrency projects such as The Petro (PTR), which is anchored in the oil but has not seen any changes since this week’s brutal fall.
According to the white paper, the price tends to be stable as each emission from the basket of Venezuelan raw materials is covered with oil, gold, iron and diamonds at a ratio of 50% for the EU crude oil, 20% for gold, 20% for iron and 10 % for diamonds.
The drop in oil prices has no impact on the petro price
However What is currently happening to the oil market has no impact on the official price, which is set at $ 60 in his white paper. At this point the question arises: Why isn’t the Petro affected by the collapse in the oil price?
The answer would have originated from the type of imposition or use by decree that the Venezuelan government gave the project, rather than an alternative that follows the laws of supply and demand in the market.
With that in mind, people have been wondering what will happen to the petro, the digital currency introduced by the Nicolás Maduro government in December 2017, and the cornerstone of the stimulus package launched in August 2018, the value of which would be wages, pensions, determine the control unit, taxes, procedures and subsidies.
For the Twitter information account @ PetroDivisaThe cryptocurrency is at $ 58.71 as well as in the PetroApp application. However, many users are wondering where this price is coming from since oil has dropped and PTR is not widespread in the country, let alone outside the country.
The petro was again a hot topic after US crude traded below zero dollars a barrel on April 20 for the first time since trading in oil futures began in 1983.
From the first moment it was announced, the Petro didn’t work because it was poorly implemented and designedBesides the fact that the government doesn’t have the confidence of economic operators.
The Petro’s difference from other cryptocurrency projects is that the first is powered by a national government that is centralized and has a closed development, not open to the community, something that goes against what is already established in the crypto ecosystem.
The fact that the Petro did not update its official price would show that the mathematical formulas in its white paper for calculating its price actually met a Formalism, since its value is determined by the government itself, taking political issues into account.