Bitcoin solves several issues, from financial policy mishandling to acting as the 1st decentralized store of wealth.
But might it even be an answer to Venezuela’s sanctioned and stuck-at-sea oil problem? instead of without aim floating stuck at sea, the oil can be placed to far better use.
Venezuela Has Over 18 Million Barrels Of Sanctioned Oil Floating at sea
It’s a phrase used so often, it is usually used sarcastically or as a joke: Bitcoin is the answer.
But the first-ever cryptocurrency actually solves several issues. It additionally could give a profitable answer for the money strapped Latin American country of Venezuela.
Venezuela is one in every of several countries beneath strict sanctions from the U.S.. The U.S. has been applying pressure to the country recently, seeking to cut off revenue flow to the regime.
President Nicolás Maduro launched a cryptocurrency backed by oil, the petrol, in an effort to skate sanctions. Trump banned the cryptocurrency within the U.S.
Due to the sanctions, and conditions within the oil market, Venezuela has over 18 million barrels of oil simply floating at sea.
This amounts to roughly two months of production within the country, unable to be monetized thanks to sanctions.
Countries won’t do business with Venezuela over the concern folks getting even, and the demand for oil is weak.
Months ago, oil fell to negative costs thanks to the related storage prices associated with owning the commodity.
It is one in every of the few assets that may trade at negative evaluation. However, few ever expected it to do so.
One straightforward Trick to Revenue: Refine Oil, Burn Diesel, Get Bitcoin
Rather than floating without aim, this oil can be regenerated into fuel. The diesel might be used to power turbines, that generate energy.
Energy is the key ingredient to Bitcoin mining. And it can be the answer to Venezuela’s revenue issues.
This oil, rather than being stuck at sea, would be place to far better use. Generating Bitcoin through mining that’s fueled by their oil supplies might be extremely profitable.
Venezuela wants badly needs an answer to their financial problems, and Bitcoin is more and more the solution. Not solely could the government have the benefit of the cryptocurrency through mining, but its citizens believe it too.
The country’s fiat currency has been in a death spiral. The country additionally tightly controls its hyperinflated financial supply.
More and more citizens within the county have turned to Bitcoin as a result.
So while the phrase “Bitcoin is the answer” is often mocked across the online, for Venezuela, it provides several solutions.