Much has been said worldwide about the use and management of cryptocurrencies and the blockchain. Over time, this proposal replaces the traditional market to become a digital market where all operations are carried out online through these innovative platforms.
Undoubtedly, fears of change and economic and financial self-sabotage enter where uncertainty will always be the central aspect to consider before investing or carrying out financial transactions with digital coins. Also, we should know what is behind a Bitcoin transaction, a well known cryptocurrency.
The cryptocurrency associated with oil, also called PETRO COIN, was created by the Venezuelan government during its worst financial crisis as a means of virtual payment in oil transactions and to stipulate the price of this non-renewable resource so valued and necessary in the industry Worldwide.
Referential aspects of petro coin
It is also known as a cryptocurrency to support this country’s mineral reserves and thanks to its long-term stability.
The values of these cryptocurrencies are affected by social, political, and economic factors directly related to the Venezuelan government, making them very unstable and with high levels of risk.
Due to this, investors do not reliably see the possibility of investing in petrocurrency; added to this are the sanctions imposed by the US government in 2019, which made oil prices even lower, on the value of oil depends the cryptocurrency
The economic and social instability this country is going through, which is the precursor of cryptocurrencies in oil, does not allow them to be revalued and become attractive for those who wish to invest them, to this is added the falls in the oil market by not having commercialization because of sanctions.
Other interests of the oil market
Cryptocurrencies link to the crude oil market and its industries on the mining side. Many mining operators focus on consuming the energy these companies produce and cannot obtain any immediate benefit other than negotiations with miners.
In this way, the energy consumption from non-renewable resources is deducted, which causes adverse effects on the environment, such as the emission of toxic gases into the atmosphere.
The oil market is always in constant fluctuations. At a global level, OPEC, an entity that works for and benefits the producing countries, is in charge of regulating and establishing rules regarding its production, price, and distribution; this is not usually very easy since it depends on the consensus of several nations to stabilize this market.
Currently, the oil economy does expect to change, to improve the finances of the large producers and industrializers worldwide since they have been in a solid economic recession.
An excellent outlet for this market could be the revaluation of its currency. It manages to acquire demand and credibility, which would cause the deployment and increase in the commercialization of the mineral in question.
Conclusion
Cryptocurrencies in the oil market have not had a significant boom due to the instability of the crude oil price, a mineral that does so widely use in the industry.
The petro is a cryptocurrency that has not gained demand and credibility due to the tremendous political and economic controversy surrounding its founding country.
Oil for a long time provided stability and profitability in its market. Yet, all this time, it has traded with the fiduciary currency of North America (Dollar $), which offered prosperity and profits to the nations involved.
It will be beneficial if Petro gains courage and trust from investors to choose to acquire these digital assets. However, the trend of preference for investments in cryptocurrencies is technology.
The petro did not obtain the expected acceptance; therefore, cryptocurrencies in the oil market are not a good option for financial growth; for this, the oil current must first be reborn, which moved and promoted the world economy for many years on a large scale.
Cryptocurrencies are the most demanded form of investment today. Still, to invest in them, we must do a market and trajectory study to choose the one that offers the best possibilities.
One should not invest in cryptocurrencies where their origin is controversial, and their future growth depends on unstable aspects.
The petro represents one of the most significant economies at the time, such as the oil company. However, today it is only a stagnant and aimless market, which struggles to get up and achieve value and prestige to its cryptocurrency for the benefit of the society that depends on negotiations with oil.
