In what has possibly been the most underrated cryptocurrency release in history, crisis-hit Venezuela has finally released its very own oil backed digital currency, the Venezuelan Petro Dollar.
While the Petro Dollar is just as mired in controversy as the day it was first announced in December 2017, digital currency investors would be wise to at least place a punt bet on the new cryptocurrency. This is because the Petro (XPD) is arguably a first of its kind real-world commodity backed digital asset.
At present, XPD is only available for pre-sale via the official Venezuelan Petro Dollar website, www.elpetro.gob.ve.
While the official Petro Dollar website pre-sale portal is currently only available in Spanish, Google translate can be easily used to navigate through the token purchase process. The most important thing for investors to note is that after clicking on the website ‘Presale’ button, international buyers will then need to select ‘Persona Natural,’ in order to register and buy XPD.
For the sake of full disclosure, investing in Venezuela's new Petro Dollar is nothing if not high-risk.
Political opposition leaders in Venezuela are currently calling XPD an illegal debt issuance. Meanwhile, the United States Treasury has already identified the cryptocurrency as being used to illegally evade economic sanctions. That said, it is for exactly this reason that the Petro has already raised over $736 million in presale revenue.
While controversial, the Petro Dollar is arguably exactly why the world needs cryptocurrency. Let’s, after all, just look at the cold hard facts for a moment.
Looking at just how resource-rich and in less debt-laden Venezuela is compared to the United States, it simply dosesn’t make sense why Venezuela is so poor.
Of course, Joe Public in the USA is told that hyperinflation in Venezuela, is a result of economic mismanagement, this, however, simply isn’t the case. Instead, Venezuela has been made poor by virtue of U.S. sanctions which make it illegal to trade oil in anything other than US dollars and it illegal for Venezuela to trade using US dollars as currency.
With new sanctions imposed on Venezuela by the US and EU almost every month, it is important to understand why sanctions have been imposed. So, did Venezuela make it illegal to run democratic elections? Did the country make being homosexual punishable by death? Did they fund the terrorists who masterminded 9/11? - Put simply no.
All of the above examples of assaults on democracy are the preserve of Saudi Arabia, the USA’s biggest oil trading partner. Venezuela is sanctioned instead, simply because it refuses to transfer ownership of its vast natural resources to US and Middle East-based corporations.
Regardless of what commentators say about the Petro Dollar, XPD is very important to the cryptocurrency market. This is due to the fact that XPD represents the first attempt by a sovereign government to sidestep economic sanctions using a state-created cryptocurrency.
With the Petro Dollar, anyone in the world will soon be able to buy digital currency backed by a real commodity. This being the case, XPD has the potential to not just help legitimize cryptocurrency, but also lift an entire country out of international banking cartel imposed poverty.
While Venezuela's Petro Dollar has huge potential, people who choose to invest in the currency need to keep a few things in mind.
Needless to say, XPD has a tough road ahead. What investors need to keep in mind, however, is that coins like Bitcoin Cash and now Litecoin Cash can be created overnight by literally anyone. A commodity-backed currency, on the other hand, can’t be. This being the case, XPD is at least worth a punt investment and potentially much more. - If, that is, the currency does start to help alleviate real poverty in Venezuela.