Venezuelan Petro: the terrible lie

The petro is a monumental flop.

By Frédéric Duval.

As you know, Venezuela is not going strong:

  • four-digit inflation

  • highest crime rate in South America

  • highest migration in the world after Syria

  • famine that affects all social classes except the government

  • ...

And meanwhile Maduro tasted steaks bleeding with the star of social networks Salt Bae :

I was already talking about it this summer and many of you were reacting.

The Venezuelan case is a tragedy that cruelly demonstrates the harm that very bad governments can do.

They can be as destructive as an armed conflict!

Under the pressure of the street, President Maduro, who does not wish to resign, must therefore make quick reforms ... and finally does nothing but panic.

Any resemblance to a government closer to us would be purely fortuitous ...

The false good idea of ​​Maduro

In December 2017, when the cryptos bubble is at its highest, Maduro announces the launch of its own state cryptocurrency.

The timing is representative of the frenzied populism of the presidential party: full of euphoria, it follows the trend blindly to give the illusion of competence.

In reality, it is not a classic crypto like Bitcoin but rather a stablecoin (stable currency).

Its price is not determined by supply and demand but by the price of a tangible good: here Venezuelan oil and gas.

There are others stablecoin fixed to standard currencies such as the US dollar (Theter, USD coin, True USD, ...) to the euro (Stasis EURS) or the yuan (bitCNY) but also to precious metals such as gold (G-Coin, GoldVein , ...).

But as expected, the petro is a monumental flop.

The problem is not the cryptos, it's the state

It's such a failure that the government is forcing its citizens to buy it!

But the worst is that this crypto is an institutionalized fraud.

Different and contradictory "White Papers" (technical presentation documents) from the Petro are circulating: some say it is based on Ethereum technology, others on NEM ...

The fraud appeared very quickly after some investigations of journalists:

  • the government says it raised 735 million dollars in its launch offer (ICO) ... without any proof,

  • the oil wells supposed to cover the price of petro are no longer used,

  • the superintendent of cryptocurrency could not be found,

  • experts say it's foolish to tie the price of a crypto to Venezuelan oil because its price is already set by the government and its price real is difficult to determine,

  • for the moment only "promises" of tokens have been sold and not the corresponding blockchain technology,

  • petro is to subscribers absent from all exchange platforms.

It's very simple: it's a new governmental lie of gigantic proportions.

The economist who had just seen

The economist Philippe Herlin presented last November the real reasons for the creation of this currency:

  • raise new funds for a government in ruins

  • circumvent international sanctions

  • strengthen citizens' confidence with a new government currency

But for him, this currency is mostly at odds with the real assets of cryptocurrency: get rid of forced links by the state and banks and guarantee free and safe exchanges between citizens.

This is not the first time that Philippe Herlin denounces a crypto-scam.

He does this regularly for readers of the Letter Strategy & Advice.

He is one of the rare French economists to have been interested very early in cryptocurrencies. It helps its readers to differentiate good cryptos from bad ones. And for now, he's never been wrong!

It is an essential asset in this market composed of an abundant offer where everything goes so fast.

In fact, I think this is the most necessary and fundamental information to invest in this area.

The Letter Strategy & Advice this will interest you:

  • if you want to save your money

  • if you want to make it bear fruit

  • if you want to see more clearly in this market

  • if you missed the internet revolution and you do not want to miss the Blockchain revolution!

The most beautiful: you do not even need to have big means.


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