With Venezuela’s scam crypto currency, the Petro (PTR), being released publicly, the entire world will soon have an opportunity to be robbed by Maduro just like his country has been for years. The first national currency trying to convince the world it’s valuable will cost purchasers any dollars, Bitcoin or Ethereum purchasers give for it.
Maduro will be named publicly (already assumed in public documents) by the US prosecutor’s that are investigating the Venezuelan $1.2 billion money laundering scheme. The settlement in August that a Swiss banker made with authorities, suggests his information will be used for investigating and bringing Maduro to justice.
In November 2016 Venezuela had already entered into the Hanke-Krus World Hyperinflation Table, when prices were rising by 219% a month and doubling every 18 days. In August 2018, the prices hit 65,000% a year increases, to celebrate the event, someone attempted to assassinate Maduro rather than wait for his people to overthrow him.
The Petro (PTR) Scam
Now that the Bolivar is worthless, Maduro and his co-conspirators need a new way to convince Venezuelans they are solving the inflation crisis. Rather than recommend the country adopt a decentralized currency like Bitcoin, he’s hopes to convince somebody his government will create a valuable crypto currency.
Venezuelans are expected to used their hyper inflated Bolivars to buy the Petro and supposedly, the government (the one that just robbed every Venezuelan) will back it with their oil reserves. This would be an interesting idea for a country without a corrupt government to try with a new currency.
Unfortunately for Maduro, his government is an example of why de-centralization is needed with money.
How Venezuelans Store Wealth
Since it isn’t in the Bolivar anymore, and the Petro scam is known around the world, people probably expect us to suggest bitcoin as the only answer for Venezuelans. It’s probably not as easy to get in the country as the US Dollar, possibly easier to get than Gold though.
The use of LocalBitcoins is huge in the country, although most transactions are still done in a foreign currency for purchasing anything. The ability to flee the country and be able to cash out Bitcoin for a national currency still makes it extremely valuable in the country.
Anyone being tricked in purchasing the Petro, will have problems selling it outside of Venezuela after the US sanctions made it even worse looking than it already was.