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Venzuela and Petro
#1
Before starting a discussion, first read this:

https://www.bloomberg.com/news/articles/...tocurrency
What is this thing that builds our dreams, yet slips away from us?

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#2
The good is that they open up for paying with all kinds of crypto. The bad is that the Petro will not have a chance with the current state of the country.
Cardano is the most promising 3 gen. crypto right now.


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#3
(2018-08-21, 08:52 AM)Carsten Wrote: The good is that they open up for paying with all kinds of crypto. The bad is that the Petro will not have a chance with the current state of the country.

Venezuela is completely down. Insiders forecast a deflation of 1million % within the next 12 months.
I don't think that Petro will solve the problem. 
Venezuela will be the first country in the world where crypto is the official currency. Someone has to be first, I agree. But not Venezuela. That country is not ready. Who will be the victim? The little, poor man in the street. Lots of them have no bank account, no internet access,...
If tomorrow they have to pay their food with Petro, how will they do?
The transition to crypto is to abrupt for them.
What is this thing that builds our dreams, yet slips away from us?

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#4
Today the people of Venezuela can go shopping for the first time with the new currency, the 'sovereign' bolivar. It is an attempt by President Maduro to put an end to the hyperinflation that keeps his country in the grip. The chance is only very small that this plan works.

This is really an emergency leap and a not very realistic hope for improvement.

Venezuela is a country that has a lot of oil reserves. In itself, with the current oil price, a country should be able to turn well, but Venezuela has ended up in a downward spiral.

As many as 90 percent of the population now live in poverty. Every day thousands of people try to flee to neighboring countries and there is also a food shortage and a shortage of medical assistance.

In June, annual inflation in Venezuela reached more than 46,000 percent. Due to the hyperinflation, which is a result of the crisis, 2 million bolivars had to be paid for a cup of coffee yesterday. That makes people literally prefer eggs than bolivar for their money.

This is really a traditional, classic hyperinflation, which happens when you have a very weak government that does want to spend a lot of money, can not or does not want to levy taxes, and then, to get financing around, it is pushing more and more money.

Fear of cash
And the more money comes into circulation to buy the relatively scarce products, the higher the prices will be. And at a given moment no one wants cash money.

We would all keep euros or dollars in our wallets because we think, well, tomorrow they are still worth the same amount. But if you think those euros or dollars are halved in value tomorrow, then you would not. Then everybody tries to get rid of their cash as quickly as possible and then those prices will increase even more until they become astronomical.

The problem is that you do not easily get rid of that kind of hyperinflation. That is very difficult, because in the end money is about trust.

The government has the right to print money. As long as the government does not get the trust of those who use the money that the prices do not go up, it is very difficult to get rid of that. That is what Venezuela is trying to do, among other things, by removing five zeros from the currency.

The government has to come up with a way to convince everyone that the value of the money will be fixed again and that will not succeed by taking a few zeros.

There are solutions
Yet there is a way to turn the tide. That's possible, for example, by saying: we are linking our currency to the dollar, euro (or whatever other more or less stable currency) in a way that we can no longer exert influence on ourselves.
If that happens, then the role of the government in determining the currency disappears and confidence returns slowly.

But that is exactly what Maduro is not doing. Instead, he links the new bolivar to the state petrogram petro, which in turn is linked to the Venezuelan oil price.

It is an unproven experiment. The link between petro and bolivar stays in the hands of the government. A government that can come up with something different at any moment. It seems like an emergency leap, a not very realistic hope for improvement.
What is this thing that builds our dreams, yet slips away from us?

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#5
It's tragic for the people, but nothing can save them expect if the have bought Bitcoins, Ethereum or some other coin that didn't drop too much. Every crypto is still better than what they have today. They can't link to dollar or Euro since they are not in the circle. Hugues in the long run you will prefer the Euro. The dollar is gonna drop to the Euro with Trump as president.

Please don't buy NurveRhino because it's Mark Rune Karlsson scam. Go to Twitter, Bitcoin talk, facebook etc. to challenge him. Lucky for us there is a facebook page for that https://www.facebook.com/Nurverhino ....
Cardano is the most promising 3 gen. crypto right now.


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#6
(2018-08-21, 08:59 PM)Carsten Wrote: It's tragic for the people, but nothing can save them expect if the have bought Bitcoins, Ethereum or some other coin that didn't drop too much. Every crypto is still better than what they have today. They can't link to dollar or Euro since they are not in the circle. Hugues in the long run you will prefer the Euro. The dollar is gonna drop to the Euro with Trump as president.

Please don't buy NurveRhino because it's Mark Rune Karlsson scam. Go to Twitter, Bitcoin talk, facebook etc. to challenge him. Lucky for us there is a facebook page for that https://www.facebook.com/Nurverhino ....
The dollar and euro was just to give an example. The only way for them to get out of this crisis is to link their currency to another one.
I know the dollar was a bad example.
After all, the fact they are going to use a crypto as legal currency could be a start for the rest of the world to see crypto as means of payment. Unfortunately the people of Venezuela will not be the ones in profit.
What is this thing that builds our dreams, yet slips away from us?

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#7
As Petro Launch Looms, Venezuela’s Bolivar Eyes 1.4 Million Percent Inflation.

https://www.ccn.com/as-petro-launch-loom...inflation/
What is this thing that builds our dreams, yet slips away from us?

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#8
The inflation makes it hard to live there.
Cardano is the most promising 3 gen. crypto right now.


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#9
Since this is centralised what is the difference between issuing crypto and issuing $USD? A big risk and amount of trust needed for the crypto - I guess the rewards could be great, but so could the losses. In their situation I would rather have USD in my pocket.
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#10
Crypto is issued by a set of rules given by math. USD is just printed as needed.... (almost true).
Cardano is the most promising 3 gen. crypto right now.


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