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  1. Petro cryptocurrency: $141 billion debt-ridden Venezuela’s answer to Bitcoin

Petro cryptocurrency: $141 billion debt-ridden Venezuela’s answer to Bitcoin

Backed by crude oil reserves, Petro - a digital coin, is Venezuela’s answer to popular cryptocurrency Bitcoin. The oil rich country on Tuesday finalised the starting phase of launching the first ever country-issued and also oil-backed cryptocurrency.

By: | Updated: February 22, 2018 1:58 PM
Petro – a digital coin, is Venezuela’s answer to popular cryptocurrency.

Backed by crude oil reserves, Petro – a digital coin, is Venezuela’s answer to popular cryptocurrency Bitcoin. The oil rich country on Tuesday finalised the starting phase of launching the first ever country-issued and also oil-backed cryptocurrency. In a way, it is $141 billion debt-ridden Venezuela’s answer to famous cryptocurrency Bitcoin. The Communist nation that is home to the largest crude oil reserves in the world believes that the digital coin will help it recover its debt-struck economy. Venezuela, last year announced a digital coin Petro saying it will issue 100 million digital petro coins during the initial year. The initial 38.4 million coins went on sale on Tuesday at a price of $ 60 per token. Nearly $735 million of investment was raised on Tuesday, Venezuela informed. However, the US has warned investors against the currency saying the country still has $141 billion to pay to its investors. The US has already imposed business sanctions on Venezuela.

Not stopping at digital coin Petro, Venezuela’s Presdient Madurao is also mulling over a plan to issue cryptocurrency backed by gold in the coming week, Reuters reported. Meanwhile, Bitcoin was trading at a 10,644.07 on CoinDesk, at the time of reporting. The popular virtual currency touched a high of  $10,888.69 today in India. Bitcoin is steadily making recovery above a low of $5,947.40 that it touched some weeks back this month. However, long term revival will have to wait to match the highs that Bitcoin printed in the second half of the previous year.

The latest recovery made by the digital currency comes in wake of Forbes list of Bitcoin millionaires. Nouriel Roubini, the famous economist, weeks back had said that Bitcoin is the mother of all bubbles and will lose its value very soon. He is the same man who rightly predicted the famous housing crash of the US way back in 2008. Nouriel Roubini had compared the Bitcoin rally to the Mississippi bubble, tech bubble, and Tulip mania. He also said that Bitcoin will reach zero as its fundamental value is also zero.

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