Petro: The Future of a Decentralized Currency?

Petro: The Future of a Decentralized Currency?

“Beware, the Ides of March!” The soothsayer who tried to warn Julius Caesar of his impending doom, probably wasn’t clear enough. Afterall, Caesar was assassinated by his faithful, Brutus. Aah! Sweet irony.

We in recent times are facing a similar situation. Our respective countries and its governments are so focused on lining their own pockets with our hard earned money that they are betraying the trust we had while electing them.

As an alternative to the standard, almost devalued fiat currency of our homelands, cryptocurrency seems to be the one anchor in these turbulent times. So, what happens when the government sees us prosper and make a little profit with the help of this decentralized currency? They declare it illegal ( India ) ban it ( China ) or heavily tax it ( USA ).

While, there are exceptions like Canada, who consider it an asset and any trading done with cryptocurrency is equated to bartering, there is still a big majority of individuals and governments alike that consider cryptos to be an elaborate PONZI Scheme!

Cryptocurrency: Logic behind the Madness

As  mentioned in previous blogs, when our countries ended their civil and world wars, they decided to use the Gold Standard to back their personal currency. ( a Gold Standard is when for every X amount of Fiat currency, the country had that value in gold. These gold reserves was what increased or decreased the value of the fiat currency.) Though now defunct, this process did have its merits.

In the case of Cryptocurrencies, the gold standard has basically been replaced by a mathematical algorithm. Every new token that is announced, every cryptocurrency that has been released and even those that are currently leading the Crypto ledger or scraping the bottom of the same, has a mathematical algorithm that supports it on a Blockchain.

See Also: All You Need To Know About Verge

It doesn’t matter if many do not understand the math in question. All that needs to be kept in mind is that, every crypto is based on something, is catering to a particular field and usually a single reading is suffice to know about the future potential of that crypto in question. Soe examples are mentioned below:

  • Tron Coin : worldwide, free content entertainment system
  • Ripple Coin: real-time gross settlement system, currency exchange and remittance network
  • Nano: Open source programing venture (very similar to Bitcoin)
  • Ethereum : Decentralized computer system to develop more Dapps
  • Bitcoin : decentralized payment system

Petro: A New Beginning

Like a breath of fresh air, Venezuela finally released its official crypto token, ‘Petro’. In the pipeworks since November of last year, there has been much opposition to its release from both sides of its parliament.

Irrespective, what is innovative, is the merging of newage decentralization with the countries asset of Petrol. This oil backed token has been declared to be a form of legal tender that can be used to pay taxes, fees and other public needs. Similar to the gold standard, Petro is backed by Venezuela’s reserver of Gold, Oil, Gasoline and Diamonds. Woah!

Beware, Venezuela is heavily under debt. The market value of the Bolivar is in shambles. The unemployment rate is high and the people have taken to the streets protesting against the policies of the government. Petro may be the next big step in boosting the cryptomarket or it may just fizzle out and act as a credit extension. They can be bought through hard currencies and cryptocurrencies, but unsurprisingly, not Bolivars. Petro is premined and only 82.4 Million tokens will be made available initially.  This limited amount may decide the future of Petro from either the frontrunner of all things crypto or forever be remembered as just another Ponzi scheme. Guess the Ides of March aren’t easily known.

Next Read: Quantstamp: The Advanced Smart-Contract Protocol

A traveler who has eaten with Bedouins, gotten lost in mist, and walked a kilometer to get net connection. When not writing, Nisha reads tech magazines to shampoo bottle labels

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