Petro - The World's First Fiat Cryptocurrency and designed to fail
Image created by @coldmonkey using coin creator for iPad.
Initial information on the Petro suggests a total misunderstanding of the nature of the algorithmic value that backs cryptocurrency. First the Petro has been linked to the value of oil price, though the government can change its mind anytime it likes, and link it to any value or whatever it likes as circumstances dictate. Second it is entirely premined by officially licensed miners. And if that is not enough to put you off, there is essentially no limit to the quantity the government can produce as dictated by the needs of the government.
Just about the opposite of everything that underlies the nature of Bitcoin.
Let us hope that the Russians do it better.
UPDATED NEWS
The Legislature of Venezuela took around half-an-hour to agree to declare the Petro illegal and contrary to Constitutional law. Under the wording of the Venezuelan Constitution, there can only be one legal currency in circulation. So we have the curious case of the worlds first Government Sponsored Asset backed Cryptocurrency being declared illegal within its own country on the day it enters circulation.
hi friend how are you if you are right that cryptocurrency was cast to fail and for those politicians to steal more without being able to be intervened, you remember the post that you read me of the petro that I did also was agreed with your answer I just put it there as a information that I got. we have the same opinion, greetings, I follow you.
It should be expected that governments will get in and Fudge things up. The model they are using wont work. I do think it is possible to have a successful centralized or state backed cryptocurrency but it needs to put more power and access in the hands of the public. The Petro Plan is a bad idea but it will pave the way for better thought out Fiatcryptos.
very nice