Venezuela In Chaos - Massive 95% Devaluation -new Bolivar pegged to state crypto

nur rochid

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Quote from: lightcar on October 10, 2018, 07:58:15 AM

Quote from: zhanyiguai261315 on August 26, 2018, 06:13:40 AM

Venezuela was originally a country with abundant resources, prosperous economy and strong national prosperity.
In just ten years, Venezuela has become a country with a sharp economic contraction, inflation, external debt, and extremely poor people's lives.
The government of Venezuela is the biggest sinner!

Ya, Venezuela has all the natural resources that it needs. The problem is the government which is mismanaging the resources. The people no longer trust government currency and any state crypto that is created will not be adopted. They will continue to use decentralized coins like bitcoin on the dark markets.

right. Their fiat currency has no value anymore. so that it turned to crypto currency, it was the policy of Venezuelan government to improve economy. hopefully there are no obstacles and the economy can bounce back

lightcar

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Quote from: zhanyiguai261315 on August 26, 2018, 06:13:40 AM

Venezuela was originally a country with abundant resources, prosperous economy and strong national prosperity.
In just ten years, Venezuela has become a country with a sharp economic contraction, inflation, external debt, and extremely poor people's lives.
The government of Venezuela is the biggest sinner!

Ya, Venezuela has all the natural resources that it needs. The problem is the government which is mismanaging the resources. The people no longer trust government currency and any state crypto that is created will not be adopted. They will continue to use decentralized coins like bitcoin on the dark markets.

believe in BTC

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Quote from: ukloon on August 26, 2018, 06:19:25 AM

It would have better if they have simply pegged the value to gold instead to ensure it is a more stable currency. At the very least peg it to the bitcoin! I'm sure that eventually the whole of the venezuelan economy will be crypto based, we will see the streets lined with prices in sats, petro, eth, and tether

Can we call it a crypto? Just because it is a digital currency or e-money of the government can it be called crypto? I do not like to call all of this crypto out of thin air. You can grind playing world of Warcraft or eve online and make money and than sell that money to fiat currency, would that make eve online in game currency a crypto? It is digital after all and can be turned to fiat currency, if these two are enough to call it a crypto currency than eve online money is crypto currency is that it? Just because Venezuela created a digital currency, that doesn't make it crypto if you ask me.

Leyss

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An interesting attempt by President Maduro to downplay the role of the dollar in the country. He understands that traditional methods can not be done and started experimenting with crypto currency. I do not know if he is an economic man, but the experiment is interesting. True, in case of failure, the whole people will suffer.

Cryptoworld4

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The government of Venezuela should take caution on how they go about this cryptocurrency for the country so that it does not throw the country into deeper recession.

cescudero95

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A real tragedy of socialism, it had been fueled by oil before the prices fell over the last couple of years.

Andrej Peiboski

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Well, but then in this case there is no difference with any other fiat.
If the government controls money and regulates the issue, I do not understand the difference

Quote from: bitmover on September 12, 2018, 07:05:38 AM

Quote from: magneto on September 12, 2018, 03:59:25 AM

Quote from: Semosuchi Tesongrato on September 09, 2018, 03:56:37 PM

A centralized cryptocurrency under government control is a contradiction in terms, so it doesn't make any sense.
Simply, Maduro is trying to save the savable, still deluding the population a little with an unrealistic proposal while preparing the escape plans.
Too bad, Venezuela is a magnificent country and does not deserve the suffering it is going through due to incompetent and corrupt politicians.

Actually, centralised cryptocurrencies are not necessarily a contradiction. It's just that it makes no sense for anyone to make an investment or affiliation with any centralised cryptocurrencies because it essentially is the same as any other fiat.

I honestly don't see where Maduro is trying to go with the Petro other than trying to lure in investment from overseas to finance their regime and escape sanctions, potentially.

The thing with Bolivar pegged to Petro is that Petro is not backed by actual oil reserves, but land that has unmined oil reserves which need significant investment in mining to actually dig out of the ground. Tying the bolivar to this centralised asset will do nothing to help the hyperinflation going on within the country at the moment, in my opinion.

I agrre that it's not a contradiction. Decentralized cryptocurrencies are important to be more resilient against government's interference.

As petrol is made by the government, it makes more sense to make it centralized.

I believe you are right too about petrol being just a way to finance his own broken government

drm

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Quote from: ukloon on August 26, 2018, 06:19:25 AM

It would have better if they have simply pegged the value to gold instead to ensure it is a more stable currency. At the very least peg it to the bitcoin! I'm sure that eventually the whole of the venezuelan economy will be crypto based, we will see the streets lined with prices in sats, petro, eth, and tether

I can't take this "state crypto" serious, but I do think that just the technology being used is a step in the right direction.

bitmover

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Quote from: magneto on September 12, 2018, 03:59:25 AM

Quote from: Semosuchi Tesongrato on September 09, 2018, 03:56:37 PM

A centralized cryptocurrency under government control is a contradiction in terms, so it doesn't make any sense.
Simply, Maduro is trying to save the savable, still deluding the population a little with an unrealistic proposal while preparing the escape plans.
Too bad, Venezuela is a magnificent country and does not deserve the suffering it is going through due to incompetent and corrupt politicians.

Actually, centralised cryptocurrencies are not necessarily a contradiction. It's just that it makes no sense for anyone to make an investment or affiliation with any centralised cryptocurrencies because it essentially is the same as any other fiat.

I honestly don't see where Maduro is trying to go with the Petro other than trying to lure in investment from overseas to finance their regime and escape sanctions, potentially.

The thing with Bolivar pegged to Petro is that Petro is not backed by actual oil reserves, but land that has unmined oil reserves which need significant investment in mining to actually dig out of the ground. Tying the bolivar to this centralised asset will do nothing to help the hyperinflation going on within the country at the moment, in my opinion.

I agrre that it's not a contradiction. Decentralized cryptocurrencies are important to be more resilient against government's interference.

As petrol is made by the government, it makes more sense to make it centralized.

I believe you are right too about petrol being just a way to finance his own broken government

magneto

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Quote from: Semosuchi Tesongrato on September 09, 2018, 03:56:37 PM

A centralized cryptocurrency under government control is a contradiction in terms, so it doesn't make any sense.
Simply, Maduro is trying to save the savable, still deluding the population a little with an unrealistic proposal while preparing the escape plans.
Too bad, Venezuela is a magnificent country and does not deserve the suffering it is going through due to incompetent and corrupt politicians.

Actually, centralised cryptocurrencies are not necessarily a contradiction. It's just that it makes no sense for anyone to make an investment or affiliation with any centralised cryptocurrencies because it essentially is the same as any other fiat.

I honestly don't see where Maduro is trying to go with the Petro other than trying to lure in investment from overseas to finance their regime and escape sanctions, potentially.

The thing with Bolivar pegged to Petro is that Petro is not backed by actual oil reserves, but land that has unmined oil reserves which need significant investment in mining to actually dig out of the ground. Tying the bolivar to this centralised asset will do nothing to help the hyperinflation going on within the country at the moment, in my opinion.

Semosuchi Tesongrato

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A centralized cryptocurrency under government control is a contradiction in terms, so it doesn't make any sense.
Simply, Maduro is trying to save the savable, still deluding the population a little with an unrealistic proposal while preparing the escape plans.
Too bad, Venezuela is a magnificent country and does not deserve the suffering it is going through due to incompetent and corrupt politicians.

The Sceptical Chymist

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Quote from: bitmover on August 20, 2018, 11:48:06 AM

This subject is so interesting and crypto related that I can't believe nobody wants to say anything.
My topic is lost in the spam sea that the economics board became :/

You got that right, bud. Economics is right behind Bitcoin/Altcoin Discussion in terms of mega spam threads. Not quite as bad as those sections, but still pretty bad.

As far as Venezuela goes, it's an interesting situation and there's some crypto news coming out of it. Looks like the number of merchants accepting Dash is increasing. Not sure why that particular coin is catching on, but I'm all for it. I think the Dash devs or whoever are trying to get more traction due to Venezuela's shitty economic condition. There are some good articles on it like this one and this one. I know Dash has tons of haters, but I think overall it's a good sign for crypto adoption in general.

Indrawan77

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I think Maduro is using everything he can to save the country, but the inflation has been gone to deep, the people are having difficulty to fulfill their basic need, using crypto as the savior can be double edge sword, in short it maybe can save the country, but in long term it will create new problem, but Maduro step need to be appreciated

xWolfx

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The huge inflationary rate was already there. However, it will get extremely crazy now.

Besides everything else they also "regulated" the prices of goods in a stupid way, setting them in insanely unrealistically low prices so it makes impossible for the private sector to sell them since they will be losing money.

They said that they were going to help them with a part of the huge increase in minimum wage but it was a lie, they still didn't communicate any real measurements to them still.

Also, it feeds the black market since a lot of people who resell the food went to the supermarkets who are still standing and raided them, for that reason now they are almost empty.

Things are definitely not looking good for Venezuela. And it will get a lot worse if a big change don't appear soon. The only ones happy are the big amount of corrupts inside the country.

Just to give you a reference, outside the unrealistic dollar price the dictatorship set. The real price for $1 in Bolivares it's around 13.000.000.000. For now.

wxa7115

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Quote from: zhanyiguai261315 on August 26, 2018, 06:13:40 AM

Venezuela was originally a country with abundant resources, prosperous economy and strong national prosperity.
In just ten years, Venezuela has become a country with a sharp economic contraction, inflation, external debt, and extremely poor people's lives.
The government of Venezuela is the biggest sinner!

The government of Venezuela is without a doubt guilty of everything that is happening in their country but at the same time the people that elected that government are also very guilty, the smart and productive people of Venezuela knew that the model that was being pushed by Hugo Chavez was never going to work.

And yet people thought that the socialist model been implemented could work forever and we know that is not the case, you cannot steal the money, the time and the efforts of the productive people in society and hope that they will keep working as they did in the previous system, that would be slavery and people are not going to do what it's against their best interest, so many left the country and that is why there is such a shortage of basic products.

ukloon

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It would have better if they have simply pegged the value to gold instead to ensure it is a more stable currency. At the very least peg it to the bitcoin! I'm sure that eventually the whole of the venezuelan economy will be crypto based, we will see the streets lined with prices in sats, petro, eth, and tether

zhanyiguai261315

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Venezuela was originally a country with abundant resources, prosperous economy and strong national prosperity.
In just ten years, Venezuela has become a country with a sharp economic contraction, inflation, external debt, and extremely poor people's lives.
The government of Venezuela is the biggest sinner!

chocolah29

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Quote from: magneto on August 24, 2018, 06:48:29 PM

Pegging their national currency to Petro doesn't really do much to help.

Yes because as long as Petro is being controlled by the government it won't resolve anything from everything. Corruption is rampant and Petro will just end up like bolivar so nothing will be useful.

Hunger and crimes will arise more and casualties and deaths will seen on the street. For once and for all, they needed a country that will step up from this and help them from their reserve and start all over again but of course US should be out of the picture first.

When it's totally heart breaking seeing the kids suffer from hunger that could lead them to death. I hope Chavez can sleep soundly at night.

timerland

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Venezuela has obviously been in constant economic problems for a good amount of the decade.

By looking at this article, they seem to think that by having a national, centralized cryptocurrency to which they peg their fiat to will solve all the country's problems, which is far from the truth. Just because a peg exists, doesn't mean the government can't continue to print more and more Bolivars by the day. They can even create more Petro, if needed, without necessarily have to have an independent auditor to audit their reserves first.

If you really believe that such a scheme is going to be successful, then you're just too naive. Venezuelans should not invest in the Petro token or keep any wealth in their currency, but rather, put it in something like bitcoin which is actually decentralized.

wxa7115

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Venezuela is the perfect example of why stealing money from the productive members of society is not going to work for the long term, the government is trying every single thing they can think of to avoid their inevitable fate, in fact I am surprised the government is still in place when the economy is in such a bad shape.

If they cared about their citizens as much as they say they do Maduro and everyone in their government should quit immediately and accept whatever punishment the people imposed on them, but that is not going to happen, this is about power and if they need to destroy every single institution of Venezuela to keep their power that is what they will do.

Topic: Venezuela In Chaos - Massive 95% Devaluation -new Bolivar pegged to state crypto (Read 671 times)