Cryptocurrency news venezuela

cryptocurrency news venezuela

Venezuela sets new monthly minimum wage, pegs it to official cryptocurrency Petro; most cryptocurrencies, including Bitcoin and Shiba Inu, fall. Since the Maduro regime launched the petro, its attempt at a national cryptocurrency, Venezuela's open and public cryptocurrency ecosystem. The petro (₽), or petromoneda, launched in February , is a cryptocurrency issued by the government of Venezuela. Announced in December BANKING ON BITCOIN REVIEW

Jimenez saw an opportunity to change his country from within. For him, a digital currency like Bitcoin was the epitome of freedom: no central control, complete transparency — actually the opposite of what the Venezuelan government was looking for. The perilous ride transported Jimenez from the life of an activist to the center of Venezuela's dark institutions of power.

However, the world's first state-owned digital coin, the Petro, he helped create didn't become the kind of revolution he had hoped for. Venezuelan strongman Maduro rigth hopes the Petro can blunt the effects of US sanctions and a homemade economic crisis. As the Petro is backed by Venezuela's oil reserves, it breaks the tenets of Bitcoin and other cryptocurrencies, whose values don't derive from a natural resource or government fiat money, but only the laws of mathematics.

Before and after Petro's launch in February , Jimenez was also repeatedly forced to change the token's so-called white paper, stating on which blockchain platform the coin runs. Jimenez's former dealings with the Maduro government have made him a controversial figure, who's lost much trust within the global cryptocommunity.

And yet, he says, he's still determined to fight his country's spiraling inflation that forced the government just in March to issue a 1 million bolivar note — worth about half a US dollar. At the same time, cryptocurrency trades paid for with Venezuelan bolivar have been surging, data from cryptotrading platform LocalBitcoins shows.

Blockchain analysts from New York-based Chainalysis also say cryptotraders from Venezuela are among the most active in the world, ranking close to those in the US and Russia when it comes to peer-to-peer P2P dollar-based cryptotrading.

Jose Maldonado, a journalist who writes for crypto news platform Cointelegraph, says it's even possible to pay street vendors with digital coins in some bigger Venezuelan cities like Caracas, Maracaibo or Valencia. The trend was also spreading to traditional brick-and-mortar stores, he told DW in an email. Cryptocurrency exchange Binance, he noted, had meanwhile become as well known as the country's biggest commercial bank, Banco de Venezuela.

In Venezuela, it's primarily the elites and members of the upper middle class who can afford to dabble in cryptocurrencies. Internet connections in many parts of the country are often too poor to allow access to coin trading. Still, cryptocurrencies are a financial lifeline for many Venezuelans, as they are an easy and affordable way for their relatives in exile to send money home. Widespread discontent with the country's socialist rulers has forced 5 million Venezuelans, out of an overall population of 30 million, to leave their country.

The Venezuelan president is using the Petro as a propaganda tool to boost public support for his social policy. Those who wanted to get it had to register on an internet platform of the government. Since this year, tax payments can also be made using Petros. The government's drive to promote the usage of its digital token seems to be bearing fruit. There are, however, also reports that state officials are increasingly using the token to transfer their riches abroad, because, similarly to Bitcoin, digital coin trades are an ideal way to secretly stash away ill-gotten money.

Gabriel Jimenez thinks working on the Petro project was a mistake — one that pushes him to "work harder" to make up for it. The only good thing that has come out of it, he said, was a wider acceptance of cryptocurrencies in Venezuela. Although growing slowly among the population at large, those who are using digital coins are gradually regaining ever bigger parts of their financial freedom.

And even if the risk of wild swings in their value is high, he said, cryptocurrencies are still a worthwhile investment, given the seemingly never-ending slide of Venezuela's official currency. Paragraph 5 has been corrected to make it clear that Jimenez never intended to give the Venezuelan government a way to bypass US sanctions and was not aware of Caracas' real motive behind its cryptocurrency push.

The US has a total embargo on Venezuela. Mining prevents any one party from be able to control the network. See also, What Is Bitcoin Mining? So if the government controls all the nodes, mining serves no purpose. The petro's miners are being registered by the government. A recent promise by Maduro to "set up cryptocurrency mining farms in every state and municipality in the country" heavily implies that the network is centralized.

A centralized network can just use a database, which is much less resource-intensive. Venezuela's mining farms aren't likely to do much more than waste electricity. Everything about the petro, from its official exchange rates to its official mining operations, boils down to a government dictate: Let it be done, or in Latin, "fiat.

Except that now, petro apparently is a cryptocurrency. The white paper scraps all references to mining and says that petro will be an ethereum-based ERC20 token. In other words, petro may be legitimately decentralized, in that the government is unable to control and manipulate transactions as it could with centralized mining — but what does that matter?

Now it's just another ICO. There have been thousands of those, most of them all but worthless. Petro has devolved into a glorified GoFundMe. Real money only. According to a "buyer's manual" released in conjunction with the petro pre-sale on Feb. No explanation is given for this change. The white paper, meanwhile, has been updated to omit all mention of petro as an ERC20 token.

The updated white paper explains that petro will in fact be housed on its own blockchain, with NEM-based tokens acting to reserve eventual petro-based tokens. No word on the form that blockchain will take. That petro will form its own network is, though, more in line with early descriptions offered by Maduro. It also explains why the government would need miners — except, as noted above, it doesn't really: when one entity controls most or all of the nodes, mining serves no purpose.

The first block that bitcoin's creator ever mined on Jan. The text has been interpreted as more than a timestamp: This was the nadir of the financial crisis, and Satoshi was likely taking a jab at perfidious financial institutions, poor governance and ubiquitous cronyism. Bitcoin, a system without intermediaries, was supposed to be immune from these problems — or at least slightly better at dealing with them.

Poor governance has in fact come to haunt bitcoin, but the idea that Maduro — a dictator who has jailed political opponents, rewritten the constitution and neutered the legislature — would try to coopt bitcoin is deeply ironic. The point was to take corrupt institutions out of the picture, not to bail them out. Investing in cryptocurrencies and other Initial Coin Offerings "ICOs" is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs.

Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was updated, the author has no position in any cryptocurrency. Your Money. Personal Finance. Your Practice.

Popular Courses. News Cryptocurrency News. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Is It the Same as Ethereum? Bitcoin Top Cryptocurrency Myths. Bitcoin Bitcoin vs. Partner Links. Petro gold was a cryptocurrency announced by the Venezuela government in early Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments.

What Is Cryptocurrency? A cryptocurrency is a digital or virtual currency that uses cryptography and is difficult to counterfeit.

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ETHEREUM MARK CUBAN

There is an additional problem that U. Press Releases. By Randolph Malone May 3, By Colin Harper Jul 23, By Landon Manning Jul 26, By Nick Marinoff Aug 15, By David Hollerith Feb 22, By Colin Harper Aug 30, By Shawn Gordon Feb 23, By Nick Marinoff Nov 30, By Colin Harper Jul 6, By Kenny Spotz Apr 9, But the whitepaper does not mention this link. When the journalists went to the proposed region for drilling, they found little evidence of oilfield activity. Based on pictures accompanying the article, it would seem that the region is barren and poor.

Conversations with resident villagers there also did not yield much information or optimism about future prospects of oil discovery. Reuters scoured the NEM blockchain, which was used for the initial round, for addresses and their petro holding amounts.

But there is a caveat to this calculation. First, the petro itself does not have any value since it is not traded on any cryptocurrency exchanges, according to the Reuters investigation. Second, the petro, as it was conceptualized, may not exist at all. When it was launched, the petro was seen as a way out of US economic sanctions on Venezuela.

However, subsequent developments have revealed that the cryptocurrency is still to gain mainstream and international traction. Investing in cryptocurrencies and other Initial Coin Offerings "ICOs" is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs.

Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

Initial Coin Offerings. Your Money. Personal Finance. Your Practice. Popular Courses. News Cryptocurrency News. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.

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