I read about the recent fast adoption of Dash in Venezuela, but I am not sure I see the big picture. How do Venezuelans buy Dash? What currency to they use to purchase Dash coins? Not with the old nor the new bolivar, right? US Dollars?
I hear the Venezuela Government are not friendly toward cryptocurrency. Is there any sort of ban in that location when it comes to buy and selling of cryptocurrency?
The venezuelan government is encouraging the use of cryptocurrencies. They are focussed on the "petro" but legally, they allow and encourage the use of any cryptocurrency.
Of course, Dash is competing against the Petro and the government is not a fair player, in fact, they blocked the internet access to the official dash website, the people from Venezuela must use a VPN in order to enter here.
I also heard about Petro. Do you think it is a good idea to invest in Petro? I know the government backs it but still, Venezuela is not a stable country so I don't know...
Hi nikato, it's hard for me to give any investment advise regarding the Petro because the Venezuelan government has changed it's white paper and the "backing" of it.
When the government decided to create the petro, they explained that it was going to be backing by the Venezuelan oil reserves, and its inicial price (ICO price) would be equal to 1 barrel of oil and after the ICO, its price would fluctuate depending of supply and demand on international exchanges like most currencies. But I asume they realized it was too risky to establish the Venezuelan economy and the price of our currency (the Bolivar) to such proposal. The volatility of any cryptocurrency is very high and because of the US sanctions and the low credibility of the Venezuelan government, the price of the Petro could have easily collapsed after an inicial pump... in any case, in that scenario the petro price would be very volatile as most cryptocurrencies.
Later the government realized this and they changed everything, from the white paper to the backing, in fact, they seemed to copy partially the white paper of Dash. For example, they decided that the Petro will be mined by ¿.....? ; and that it will work under the X11 algorithm; that the petro will have masternodes managed by ¿.....? who are going to receive 85% of the mining profits. Now the Petro won't be backed just by the Venezuelan oil and if I understand well, it will be issued as a kind of stable coin, so it's price won't be affected by supply and demand of the cryptocurrency but by the price of the commodities it "represents" (this backing is completely debatable legally). I think this is a more "clever" approach to reduce volatility but maybe it makes it less attractive as an investment. They deliver this mathematical formula which I attached here, maybe someone here can help me to analyze it.
What I can tell you is that they are going to incite, motivate and even force the entire Venezuelan population to use the Petro.