Topic: Venezuela In Chaos - Massive 95% Devaluation -new Bolivar pegged to state crypto - page 2. (Read 644 times)
August 25, 2018, 02:01:54 PM
The Venezuelan government really need to be careful with the way it is handling this its national cryptocurrency of a thing so that it doesn't plunge the entire country into financial crisis.
August 25, 2018, 01:46:58 PM
Venezuela is having a hard time. I hope to recover soon. States can make economic mistakes. But it still has to attract people to get in trouble. Unfortunately, the hard days of Venezuelan citizens are waiting.
August 25, 2018, 01:10:44 PM
Venezuela has "heavy oil" that requires significant additonal treatments to make it useable.
Quote
Heavy oil usually contains significantly higher contents of asphaltenes
The presence of asphaltenes, chemically altered fragments of organic chemical compounds, in oil can greatly complicate the production process. Subsequently, certain asphaltene elements require that the heavy oil also undergo a special refining process called deasphalting. The chemical composition of asphaltenes can consist of various amounts of sulphur, oxygen, hydrogen, nitrogen, carbon, and the heavy metals nickel and vanadium and are widely recognized as soluble.
The presence of asphaltenes, chemically altered fragments of organic chemical compounds, in oil can greatly complicate the production process. Subsequently, certain asphaltene elements require that the heavy oil also undergo a special refining process called deasphalting. The chemical composition of asphaltenes can consist of various amounts of sulphur, oxygen, hydrogen, nitrogen, carbon, and the heavy metals nickel and vanadium and are widely recognized as soluble.
Thanks for this info, this somehow explains why a country rich in oil does not profit from it, or we may say that very small % of people make some profit, but but the rest of the population gets only crumbs. Of course there are also economic sanctions from USA, all in all a very bad situation.
The govt is unable to profit from the oil reserves simply because they destroyed PDVSA[1], the company in charge of refining and exporting oil in the country. Things went from bad to worse after Chávez died, not only the crude oil price has gone down over the last few years but PDVSA has had such a shit management under Maduro administration with some terrible policies that the company has started to import oil despite having large oil reserves.
Things are so shit in this company that the oil workers have started to quit their jobs[2].
1. https://www.forbes.com/sites/stevehanke/2017/03/06/venezuelas-pdvsa-the-worlds-worst-oil-company/
2. https://www.reuters.com/article/us-venezuela-oil-workers-insight/under-military-rule-venezuela-oil-workers-quit-in-a-stampede-idUSKBN1HO0H9
August 25, 2018, 07:26:31 AM
something will have to change - if not by citizens in Venezuela then maybe with some outside help. We've all seen how "democracy" is introduced in Iraq, Afganistan, Syria and some other countries...
Funny that you name 3 countries where socialism was introduced so peacefully by the URSS before the events you refer to /sarcasm
But situation will touch the bottom at one point, something will have to change -
No, it won't. There are tens of countries that are still dirt poor even with more resources than the whole of Europe and nothing is done. They keep on dying of hunger while fighting the evil westerners that want to plunder their resources....
Pegging their national currency to Petro doesn't really do much to help.
They could have pegged it to whatever they wanted, to the euro to gold even to the USDT
The problem is how you maintain this value.
What they've done is basically flood the market with another few million worths of $ coins (in theory) but with no money to back the value, so no wonder it will just make things worse...a lot worse.
August 25, 2018, 06:35:53 AM
Venezuela has "heavy oil" that requires significant additonal treatments to make it useable.
Quote
Heavy oil usually contains significantly higher contents of asphaltenes
The presence of asphaltenes, chemically altered fragments of organic chemical compounds, in oil can greatly complicate the production process. Subsequently, certain asphaltene elements require that the heavy oil also undergo a special refining process called deasphalting. The chemical composition of asphaltenes can consist of various amounts of sulphur, oxygen, hydrogen, nitrogen, carbon, and the heavy metals nickel and vanadium and are widely recognized as soluble.
The presence of asphaltenes, chemically altered fragments of organic chemical compounds, in oil can greatly complicate the production process. Subsequently, certain asphaltene elements require that the heavy oil also undergo a special refining process called deasphalting. The chemical composition of asphaltenes can consist of various amounts of sulphur, oxygen, hydrogen, nitrogen, carbon, and the heavy metals nickel and vanadium and are widely recognized as soluble.
Thanks for this info, this somehow explains why a country rich in oil does not profit from it, or we may say that very small % of people make some profit, but but the rest of the population gets only crumbs. Of course there are also economic sanctions from USA, all in all a very bad situation.
Its actually because, nobody wants a real revolution...
The things are so bad in Venezuela that there are only two solutions
-pray to the great Karhu that oil prices go up
-massive cuts in government spending
And since the first one is pretty obvious it won't work the second threatens millions of government employees.
They won't let a revolution happen, they cling to their positions which at least now it grants them a bit of food, they will do anything to prevent it. With the support of those, with the military that is also dependent on government paychecks, with the support of fanatics that still believe the US is to blame for it, with the silence of the many that indirectly depend on the former and the fear of change from others...nothing will change.
Even the opposition knows that even with Maduro gone, the way back out of this mess will be even harder than what's happening now.
The only thing we will see in Venezuela is how the end of a country looks like.
I would not say no one wants a revolution, but when millions of dissatisfied people leave the country those who stay are just too week to begin some changes. As you say it would be necessary that all people decide to go out on the streets, but those on government paycheck are just in fear of losing what little they have. But situation will touch the bottom at one point, something will have to change - if not by citizens in Venezuela then maybe with some outside help. We've all seen how "democracy" is introduced in Iraq, Afganistan, Syria and some other countries...
August 24, 2018, 11:16:30 PM
I don't think the government is actually getting everything right. There is no way they can force a crypto price on people. It will be determined by the market.
August 24, 2018, 08:28:27 PM
Venezuelans are started accepting Dash in their stores, so when your local currency is not good store of value, then cryptocurrencies could be good option. I hope that we do not need to wait Venezuelan scenario for cryptocurrencies adoption.
They are honestly better off accepting bitcoin, instead of dash.
August 24, 2018, 07:51:55 PM
Venezuelans are started accepting Dash in their stores, so when your local currency is not good store of value, then cryptocurrencies could be good option. I hope that we do not need to wait Venezuelan scenario for cryptocurrencies adoption.
August 24, 2018, 07:48:29 PM
Pegging their national currency to Petro doesn't really do much to help.
It still relies on the price of oil to rise or at least stabilise in order for this to function. Also, don't forget that Petros are state owned, which means that they can essentially issue as much as they want if such drastic measures are called for.
The hyperinflation crisis has been going on for ages now in Venezuela, and has no signs of stopping any time soon. I don't think that this is a viable solution by simply pegging it to another central bank issued currency, but bitcoin could definitely be useful to Venezuelans who want to store their wealth in the long run without having to worry about inflation.
It still relies on the price of oil to rise or at least stabilise in order for this to function. Also, don't forget that Petros are state owned, which means that they can essentially issue as much as they want if such drastic measures are called for.
The hyperinflation crisis has been going on for ages now in Venezuela, and has no signs of stopping any time soon. I don't think that this is a viable solution by simply pegging it to another central bank issued currency, but bitcoin could definitely be useful to Venezuelans who want to store their wealth in the long run without having to worry about inflation.
August 24, 2018, 10:16:12 AM
On the other hand, I like the fact they're giving the finger to "Team America: World Police". US foreign policy has pretty much become a blight on humanity at this point. They are categorically not making the world a safer place. More countries need to defy their increasingly absurd will. If state-backed cryptocurrencies become the new norm for doing this, I'm okay with that.
Yeah, giving the finger to the ones that are keeping you and your country alive.
The moment the US bans at least oil trade not a full embargo on Venezuela, the country will be sent from the stone age directly into the Mesozoic.
In the sense that you could put a gun to someone's head and then claim that you're "keeping them alive" until the moment you pull the trigger, sure. But at some point you have to consider if the situation would be improved by removing your involvement from the equation. Obviously the US are incapable of that, though.
What gun is the US putting at Maduro's head?
Threatening him that they won't buy oil? Probably the lamest threat ever....
And speaking of giving the finger to the US, there is another country that far goes above anything Venezuela has done. Vietnam, after 40 years of "giving the finger" to the US , writing books on how they defeated the US, on how strong they are, how the US is the evilest thing on this planet....are down on all fours wagging their tails and licking asses to make sure the US protects their country The god if irony had a heart attacks when he heard of that
So why is Venezuela not cutting all the ties with the US?
Probably because of the fact that despite all that propaganda about embargo and sanctions, it runs a trade excedent with the US?
It's pretty easy to label the US as evil and blame it for everything, it's the coolest # this century, it's pretty damn hard to explain with fact why Venezuela is the only one experiencing this.
Why is not Norway in the same situation?
August 24, 2018, 06:58:43 AM
It seems to me that the idea of attaching a currency to a crypto currency will be a failure for Venezuela. With hyperinflation, when the flywheel is tempted, it is possible to stop devaluation of the local currency only by fundamental reforms in the economy, which is not happening in this country. The fall will continue.
August 24, 2018, 06:25:27 AM
Its actually because, nobody wants a real revolution...
The things are so bad in Venezuela that there are only two solutions
-pray to the great Karhu that oil prices go up
-massive cuts in government spending
Cutting spends is not enough at this point.
Maduro, chaves etc, needs to be removed completely from the country. They have literally robbed the country economy.
They have expelled all big private companies from the county and robbed their infrastructure.
There is not even food anymore in the country, and corruption is on bizarre levels.
Look at this news:
http://www.foxnews.com/world/2015/08/10/hugo-chavez-daughter-is-richest-individual-in-venezuela-report-claims.html
Quote
On more than one occasion the late Venezuelan president Hugo Chávez declared that being rich is bad, often adding “Rich people attack me for saying that, but I claim it is bad.”
His favorite daughter, however, may disagree.
According to the Miami-based Diario Las América, Venezuelan media sources will soon publish materials showing that María Gabriela Chávez has bank accounts in the U.S. and Andorra with assets totaling nearly $4.2 billion.
This what real socialism is about: robbery, corruption, hunger..
August 24, 2018, 01:07:47 AM
It seems like Venezuela may be the first country to have its national currency be crypto. I have been hearing about them attempting this for quite sometime now. I believe the government run cryptos will start in South America.
August 23, 2018, 07:13:57 PM
On the other hand, I like the fact they're giving the finger to "Team America: World Police". US foreign policy has pretty much become a blight on humanity at this point. They are categorically not making the world a safer place. More countries need to defy their increasingly absurd will. If state-backed cryptocurrencies become the new norm for doing this, I'm okay with that.
Yeah, giving the finger to the ones that are keeping you and your country alive.
The moment the US bans at least oil trade not a full embargo on Venezuela, the country will be sent from the stone age directly into the Mesozoic.
In the sense that you could put a gun to someone's head and then claim that you're "keeping them alive" until the moment you pull the trigger, sure. But at some point you have to consider if the situation would be improved by removing your involvement from the equation. Obviously the US are incapable of that, though.
August 23, 2018, 06:57:13 PM
it's not all about crypto just to address what's happening with their current situation. political leaders should think of other solid solutions rather than focusing themselves in the technology that they are not really expert with.
August 23, 2018, 06:30:14 PM
On the other hand, I like the fact they're giving the finger to "Team America: World Police". US foreign policy has pretty much become a blight on humanity at this point. They are categorically not making the world a safer place. More countries need to defy their increasingly absurd will. If state-backed cryptocurrencies become the new norm for doing this, I'm okay with that.
Yeah, giving the finger to the ones that are keeping you and your country alive.
The moment the US bans at least oil trade not a full embargo on Venezuela, the country will be sent from the stone age directly into the Mesozoic.
Why there is no revolution is good question, but in country which have dictator like Maduro this is not easy to achieve - any such attempt is crushed at its very beginnings, military and police take care that this does not happen. Also hundreds of thousands have left the country, by some data almost 1 million people emigrated from Venezuela-migration-situation . So a large number of dissatisfied already gone, critical mass has decreased a chance for some serious change is very low.
Its actually because, nobody wants a real revolution...
The things are so bad in Venezuela that there are only two solutions
-pray to the great Karhu that oil prices go up
-massive cuts in government spending
And since the first one is pretty obvious it won't work the second threatens millions of government employees.
They won't let a revolution happen, they cling to their positions which at least now it grants them a bit of food, they will do anything to prevent it. With the support of those, with the military that is also dependent on government paychecks, with the support of fanatics that still believe the US is to blame for it, with the silence of the many that indirectly depend on the former and the fear of change from others...nothing will change.
Even the opposition knows that even with Maduro gone, the way back out of this mess will be even harder than what's happening now.
The only thing we will see in Venezuela is how the end of a country looks like.
August 21, 2018, 07:50:50 PM
"One likely outcome is that inflation, which already was forecast to reach 1 million percent this year, will get fresh fuel from the measures. Prices are currently rising at an annualized rate of 108,000 percent, according to Bloomberg’s Café con Leche index. A massive exodus of Venezuelans fleeing the crisis to neighboring countries will likely increase and with it, tensions and restrictions like the ones seen over the past few days."
-----> That is very intriguing. I've seen a lot of sacrifices in people and now the devaluation of money. What will now happen to the people living with their life and wants to live their own lifestyle. We are married to our own happiness and now this happen? It is suspected that the ISIS terrorists groups own a lot of these drones and have tested them, there are drones specially designed for these purposes. The population tried to remove through protests, but they were repressed. They tried through election, but they were fraudulent. How crucial that there is these belongings of Venezuelan immigrants burnt by residents of the Brazilian border town of Pacaraima.
-----> That is very intriguing. I've seen a lot of sacrifices in people and now the devaluation of money. What will now happen to the people living with their life and wants to live their own lifestyle. We are married to our own happiness and now this happen? It is suspected that the ISIS terrorists groups own a lot of these drones and have tested them, there are drones specially designed for these purposes. The population tried to remove through protests, but they were repressed. They tried through election, but they were fraudulent. How crucial that there is these belongings of Venezuelan immigrants burnt by residents of the Brazilian border town of Pacaraima.
August 21, 2018, 06:01:43 PM
On the other hand, I like the fact they're giving the finger to "Team America: World Police". US foreign policy has pretty much become a blight on humanity at this point. They are categorically not making the world a safer place. More countries need to defy their increasingly absurd will. If state-backed cryptocurrencies become the new norm for doing this, I'm okay with that.
They never were making the World a better or a safer place. Petro is going to be a big fail, there was not really much thought put into it, Venezuela is in a bad state, it always was, but things are only getting worse. The Government is outright thrash. They don't know how to do things, or how to control the public.
It's most times not about one man that is trying frantically to pull his country down. started by a dictator.
Trying? He already has pulled his country down, look how bad the state of Venezuela is. It's actually more than questionable since a drone can be accurately tasked to do something, even when it's equiped with whatever explosives making its steering less responsive. With the right amount of training one should be able to overcome that difficulty, especially if the task is getting rid of someone of this nature.
I strongly believe it's just Maduro himself that orchestrated this whole "attack" to justify his military spending and whatnot. The response of the guards quickly protecting Maduro after the explosions is just as questionable. It's not human's nature to react like that, regardless of how trained you are. They probably knew it wasn't an actual attack as well.
The ISIS terrorists groups own a lot of these drones and have tested them, there are drones specially designed for these purposes. I strongly believe it's just Maduro himself that orchestrated this whole "attack" to justify his military spending and whatnot. The response of the guards quickly protecting Maduro after the explosions is just as questionable. It's not human's nature to react like that, regardless of how trained you are. They probably knew it wasn't an actual attack as well.
As much as I would like to believe that Maduro orchestrated this attack,he probably didn't. A whole economy hates him, he's a total jerk. There are way too many motives to kill that one guy.
Looks like that's the main objetive of the leaders (Maduro & co) that are causing such an economic collapse. They know that they'll have more control and power over the citizens the more chaos they create, the govt knows that by increasing the minimum wage so drastically, many private companies will need to dependant on the govt, I bet that's exactly what the govt wants: to destroy or weaken the private sector so that everyone depends on the state.
This is gonna fuck things up for him in the future,is all I can say. I still have to read a little more on this topic than commenting any further. 
August 21, 2018, 12:36:03 PM
It still amazes me how one man can do so much damage in a countries economy, pushing its people into extreme poverty and nobody being able to do anything about it... It's sad that this is happening to the Venezuelan people.
It's most times not about one man that is trying frantically to pull his country down. Its a function of either the economic status of the country and managers of that country. For a country that is import dependent throwing tantrums to several world power countries or a country that is oil dependent without any back up plan, the crash of oil price below their projected revenue couple with problem with world powers above, there is bound to be a problem. While there is need to apportion blame to the political head, most of the time they are helpless against the forces against them.I see this move to crypto as a desperate attempt to save the economy but he still doesn't get it. The more decentralized they go the worse it will be to the country as no one in their right mind would invest in something started by a dictator.
Desperate times like they say calls for desperate measures and that is the case of what they are doing as they are trying frantically to stay above waters which is about to drown them the moment public outcry is added to the whatever they are facing currently. The result of this move might be counterproductive but to them, its the best course of action at the moment.
August 21, 2018, 12:10:43 PM
The main idea is interesting especially if the new cryptocurrency will be bound with crude oil to reflect its price in some proportion based on a formula as, for example, 80% WTI or Brent. I guess this idea can help Venezuela to attract investor's money quite rapidly because there are lots traders who trade oil forwards and futures so they could be interested on buying the new asset which is based on crude oil. By the way everybody may make sure that crude oil is a superb asset for speculators because the most part of time crude oil is in a trend. I would like to caveat retail investors that in the current moment of time investing in crude oil is quite risky because crude oil has doubled its price from about 40$ to about 80$ (I mean Brent as an example) since this year and there will be probably a correction in this asset so be careful when investing in oil based assets.
Jump to: