El Petro: Desperate Times Call For Desperate Measures by Rory - The Daily Coin
Desperate times call for desperate measures. When government "officials" become desperate and run out of other peoples wealth, well, the desperation becomes palatable. This is exactly what is happening in Venezuelan.
Venezuelan President Nicolas Maduro, a socialist maniac, has driven the country into the ground with promises that could never be kept. Then the Venezuelan government committed the ultimate sin and began discussing gold and demanding their gold be returned, which it was. When a country begins discussing gold, handling gold, bringing gold to the conversation on a regular basis, bad things tend to happen. Look no further than Muammar Gaddafi, the former President of Libya.
Now, desperate, out of cash, the people starving to death and the entire country falling apart, Maduro announced he would be bringing a cryptocurrency to market that would be backed by gold, oil and diamonds. Sounds great on the front end, but you need the mechanism in place to make it work. A small detail that has been completely overlooked by the government and specifically Maduro.
As a lot of you know we have been following the progress of this thrown-together crypto and judging from the reaction - or better still non-reaction - by the Russians and Chinese it seems that Maduro's days are numbered and El Petro may never even fly.
Most recently we have been questioning where this crypto derived. Was it being worked on for the past year or did Maduro commandeer the technology from someone within Venezuela? You can't just announce one day you are going to start a crypto and a few weeks later announce it is on the market and ready to go!! It doesn't work that way.
This begs the question how do you announce that you have something when you in fact have nothing? Maduro announced El Petro was ready to go almost three weeks ago and the Venezuelan Parliament almost instantly stated this was unConstitutional and illegal.
Now we learn the "White Paper" that describes how the thing works is a scam and sham!
Venezuela's government is pushing back against what it calls "false information" in connection with a purported white paper tied to its planned oil-backed cryptocurrency.
While the South American nation did not confirm exactly what this false information constitutes, the superintendent of Venezuelan Cryptoassets and Related Activities – recently created to oversee the work, which was first announced last month – told Reuters that the government was rejecting a white paper which purported to explain how the petro worked.
The white paper for the petro has not been released yet, he said, but Venezuelan President Nicolas Maduro will do so "soon."
A Reddit post from roughly two weeks ago claimed to include a link to the petro's white paper, and the document itself – unconfirmed by the Venezuelan government as of yet – appears to be hosted on the government's official website. Whether this document is an early version of the expected official release remains to be seen. Source
Is it on the market? What are all the miners mining if it doesn't exist? Who is going to accept El Petro as payment - even though it has oil, diamonds and gold backing it, if it doesn't work would a person/nation be able to acquire their goods for the currency invested? Lots of questions that spark even more questions and very few answers.
This entire situation is being watched the world over and with cryptocurrencies being watched by governments the world over it seems this crisis could be used as tool against the people to capture their cryptos or attack cryptos in some manner. Will governments use Venezuela as an excuse to attack the other cryptos and, more importantly, the exchanges? It only takes a couple of handful of people to get taken down to scare the masses out of the "pool" and once that happens the privately created cryptos will likely disappear.