Drudge Retort: The Other Side of the News
Monday, December 04, 2017

Venezuela is creating a digital currency to combat a financial blockade by the United States, President Nicolas Maduro announced Sunday. The Petro will be backed by Venezuela's oil and gas reserves and its gold and diamond holdings, the president said in his weekly television program. ... Venezuela is mired in a deep economic crisis triggered mainly by a fall in crude oil prices and a drop in oil production. Petroleum is its main source of hard currency. Over the past year, the Venezuelan bolivar has plummeted 95.5 percent against the dollar on the black market.

Advertisement

Advertisement

More

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

Itll be very interesting to see how a state and asset backed crypto does in the world currency market.

#1 | Posted by GOnoles92 at 2017-12-04 12:51 PM | Reply | Newsworthy 1

And they can use it to buy crypto toilet paper.

#2 | Posted by HanoverFist at 2017-12-04 01:09 PM | Reply

This wont do that well.

Their dollar is attached to oil and it isn't doing that well..

#3 | Posted by boaz at 2017-12-04 01:26 PM | Reply | Newsworthy 1

Their dollar is attached to oil and it isn't doing that well..

#3 | POSTED BY BOAZ

I'm proud of you Boaz for realizing the legitimate reason and not blaming socialism.

#4 | Posted by IndianaJones at 2017-12-04 01:51 PM | Reply | Newsworthy 2

#1 | Posted by GOnoles92

I am highly doubtful of it doing anything. It seems to go against the basics of crypto currency...

#5 | Posted by GalaxiePete at 2017-12-04 08:21 PM | Reply

If they mine bitcoin as a mechanism to give them liquidity for their $PETRO outside of the existing financial system, theoretically this could work. If they can't mine adequate amounts of Bitcoin, this is a pointless exercise.

#6 | Posted by Ben_Berkkake at 2017-12-04 08:38 PM | Reply

If they don't do this exactly right, it could be a total disaster for them.

#7 | Posted by MarcNBarrett at 2017-12-04 08:52 PM | Reply | Newsworthy 1

I'm proud of you Boaz for realizing the legitimate reason and not blaming socialism.

The reason for their collapse is a number of reasons. Unfettered Socialism is one of them. Collapse of oil is another. Corruption is one of them.

#8 | Posted by boaz at 2017-12-05 07:16 AM | Reply

"Venezuella's economic crisis was triggered mainly by a fall in crude oil prices and a drop in oil production."

No doubt about that, but its not a complete picture. While the USA continues to co-operate with other countries which nationalized their oil resources such as Mexico and Saudi Arabia they have sought to overthrow the Venezuelan Government by attempted assassination and "a financial blockade by the United States".

The USA prefers countries which support slave labor and tyrannical fiefdoms, such as the Saudis and a brutal violent libertarian Capitalism, such as Mexico. Venezuela is our enemy because they have pulled their poor people out of poverty at the expense of rich people. This must never be tolerated.

#9 | Posted by bayviking at 2017-12-05 07:20 AM | Reply

#9 | Posted by bayviking

Understand that it's not about the nationalized oil itself. Maduro is truly a dictator and not a benevolent one. The crashing oil prices was the main trigger but it exposed the corruption and power hungry nature of the ruling party's leadership. The reason the US has taken such a strong stance is their anti-US plotting and rhetoric. Remember this group came from Communist insurgents and not Socialists. They are about power and always have been. And the right talking heads deliberately confusing and blurring socialism with communism doesn't help things.

Keep in mind there are many countries who's oil supply is nationalized. Mexico has been nationalized since 1938... Brazil and Argentina are a couple more. By 1976 virtually every major Oil Producer had nationalized or partially nationalized oil. That said I can't defend our Saudi Arabia decisions among many others but they are not communist either.

#10 | Posted by GalaxiePete at 2017-12-05 09:15 AM | Reply

Advertisement

Advertisement

"Itll be very interesting to see how a state and asset backed crypto does in the world currency market."

Will you sell me some food and I'll pay you with Venezuelan crypto coin? No? Why not?

This is a joke, no other nation is going to accept Venezuelan pretend money as payment for goods.

#11 | Posted by danni at 2017-12-05 09:26 AM | Reply

#11 | Posted by danni

No it isn't a joke. Other nations don't have to accept it but buyers and sellers do. Just like Bitcoin and all the rest which are backed by nothing. Some have been gaining value while others not so much. The fact it is backed by Venezuelan oil is what I find odd and honestly funny. I think most crypto currency people will be highly skeptical of it because it is a government sponsored crypto with a natural resource backing it from a country who is not exactly known for stability or keeping its promises. You "are" how you are perceived and Venezuela is not perceived as trustworthy. I know I am HIGHLY skeptical.

#12 | Posted by GalaxiePete at 2017-12-05 10:05 AM | Reply

TGpete,

he election of Maduro is far more legitimate than the election of Trump or Bush. He has never been as popular as Chavez and the US economic blockade has only hurt his popularity. Right wing protests have been organized by the USA, like in the Ukraine. This has forced Maduro to impose marshal law, but he is neither a dictator, nor a communist. Venezuela owns Citgo and Valero gas station chains and refineries in the USA. During the last oil crisis, when Bush invaded Iraq, Chavez provided free heating fuel to the Northeast US.

#13 | Posted by bayviking at 2017-12-05 06:40 PM | Reply

#11 | POSTED BY DANNI

Why are you buying food in a ForEx market in this hypothetical?

Can't you use a local currency or barter to buy food locally?

Do you think Aussies buy their food in Rubles?

#14 | Posted by IndianaJones at 2017-12-05 07:33 PM | Reply

Will you sell me some food and I'll pay you with Venezuelan crypto coin?

In a modern example which you can try out tomorrow, you can buy food with Bitcoin. If I was in Venezuela, then it would make sense to accept the Venezuela cyberCoin.

#15 | Posted by GOnoles92 at 2017-12-05 08:01 PM | Reply

Bitcoin has gained a very surprising amount of momentum while it is backed merely by solid protocols and community trust.

To contemplate a cyber Vessel of Value™ which has transparent protocols and also a base valuation of a basket of natural resources... I am fascinated and hope that this idea sees implementation.

#16 | Posted by GOnoles92 at 2017-12-05 08:07 PM | Reply

I am fascinated and hope that this idea sees implementation.
#16 | POSTED BY GONOLES92

I predicted a while back that BitCoin won't last as an actual "currency" versus it's current, majority form as an investment. It's history is so incredibly murky that it won't have the foundational legitimacy necessary for long term success. Something like LiteCoin has a better opportunity as a legitimate cryptocurrency for the future marketplaces, IMO.

Interesting to see where a cryptocurrency backed by a military will end up.

#17 | Posted by rstybeach11 at 2017-12-05 08:40 PM | Reply | Newsworthy 2

Good post Rsty, and you are correct.

I'm about to start investing in LiteCoin. Also, some of the other coins like Ripple and others made just for the Energy, Oil and financial markets are going to be worth looking at in the near term. If any catches fire, I have a feeling it's going to be a blaze...

I see there are ATM's. Getting USD out of a crypto currency is currently a small obstacle.

#18 | Posted by boaz at 2017-12-06 08:54 AM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2017 World Readable

Drudge Retort