Why I agree with Donald Trump on the ban of the fake "cryptocurrency" backed by Venezuela
Venezuelan currency is Venezuelan currency and putting "cryptocurrency" as a marketing scheme fools no one but the unsophisticated
Unsophisticated users of cryptocurrency could actually be tricked into believing that a state backed "cryptocurrency" is a real crypocurrency. It's not. Any cryptocurrency backed by a nation state is a political currency disguised. For this reason Donald Trump and the US government has every right to tell US citizens not to use another states currency because what reason is there to do so?
- You cannot pay taxes in the Venezuelan currency.
- The Venezuelan currency has a political agenda built into it just like the US Dollar.
- If you do not live in Venezuela, have no intention to renounce your citizenship and move to Venezuela, then there is no logical reason to buy their currency.
Conclusion
The Venezuelan currency is just another "state backed" currency and is not at all a crypto currency. They are trying to ride the popularity of crypto to promote their national agenda.
While I do not think Trump will be able to actually enforce this kind of ban, I don't and never would purchase a state backed crypto currency unless it's a state I'm a citizen of (in order to pay taxes) or am living in long term. There is no real advantage to buying this "crypto currency" over just buying a regular state issued currency.
These state backed currencies should be seen as scams to trick people into supporting nation state agendas. These are not "good things" for the crypto ecosystem and are actually very bad. Of course if you are a citizen of Venezuela then I do not blame you at all and you probably should buy this if it helps you pay taxes otherwise don't bother.
A lot of cryptos will come and go.
Just wait and see.
All cryptos come with agenda, some are clearer than others.
Some are blatantly issued to rig a system.
Cryptos supposed to be free market, we will see how far the rabbit hole goes.
As a Venezuelan citizen I do not have the slightest interest in auctioning, buying or mining PETRO. And my reason is simple, the Venezuelan government still does not say anything concrete about this revolting cryptocurrency. Today I heard the PSUV vice president, Diosdado Cabello, one of the main members of the Government say that on Thursday there would be surprises about the Petro, that there were already principles of purchase for 5 billion dollars, and that it was the strongest cryptocurrency that counted with the support of the supreme commander Hugo Chavez. For me, it is one more of the same trash that has been saying for a long time and that follows the same purposes as the previous measures implemented, diverting the attention of the country from its main problems and I believe that if implemented as they say, they -the Government members - will be the ones who manage this at will, maybe it's their way of keeping their savings away from international agencies.
Petro is a "debt based" crypto. The government cannot get funding by selling debt because of the sanctions, and now they sell debt using oil reserves as a guarantee.
So it's pretty much of the same thing. It's a scam that would only benefit money launderers, drug lords, lobbyists and the Venezuelan government/military.
I wouldn't buy the Venezuelan crypto first and foremost because it would be a lousy investment and completely unworthy of my risk capital. There are a multitude of other cryptos that would offer more upside and less risk.
Even if that weren't the case, I would not want to in any way support this inept Socialist government that has caused and continues to cause untold suffering on the Venezuelan people. I pray that this nightmare will be over as soon as possible for them. I don't believe the end will come until the government is replaced.
This is not a "pure" cryptocurrency. Each unit is backed by a barrel of oil. It can only be created by Venezuela. The crypto part simply is a way of transferring it.
In short, you can't mine it and you pretty much have to obtain it from Venezuela government directly or indirectly.
I would never buy this either. Having said that, I don't think the president should be able to stop me if I wanted to.
Very good post,
It is true.... Will buy that state backed crypto which belongs to our state.....it is quite obvious...
I would consider buying the right government issued crypto-instrument, and would happily trade muni bonds or whatever right alongside EOS and STEEM on exchanges. But the PETRO just seem like a shady token run by a bunch of scammers ... it's just that these scammers are a national government.
There are many Yes or No for this act of Donald Trump...At the moment I don't know the origins of the move...to be clear with the "behind curtain reason"....
Competition between governments to be honest. Still, the US market is much more important in terms of the amount of money which can flow in so if you aren't a US citizen, care only about the price, and don't want a crypto recession, then do not support scam crypto currencies like this petro.
The only true cryptocurencies are the ones which do not have any backing by any nation state. The whole point of cryptocurrencies is for people who don't trust the nation state currencies for whatever reason. The whole idea behind decentralization is to reduce political influence and remove the state agenda from the token.