All You Need To Know About The Oil Backed Crypto

Petro a hard asset-backed crypto introduced in February 2018. This crypto was first announced in December 2017 by the Venezuelan president. He stated that its aim was to make the country advance on money sovereignty issues and tap into international financing easily. Petro billed as the first sovereign currency introduced in the crypto space. The crypto built on the NEM blockchain and backed by oil, gasoline reserves and mineral reserves of gold and diamonds. It called oil backed crypto.

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In this post, we will explore what this asset-backed sovereign crypto offers in this arena. Also discuss crucial details such as its price, exchange process and platforms, market cap and value. Find out more about one more oil backed crypto – OilCoin.

Petro crypto price

The current petro price is $0.0225 with a price change of around 3.08%. The confidence in this crypto price is currently high and investors have higher stakes of making returns from investing in this crypto as long as they keep tabs on the price charts.

Even with this, it is important to note that most traders do not treat petro as a very stable coin considering that its price partially depends on the value of the hard asset (mostly oil) it is backed with. Also, not many exchanges will abide by the Venezuelan government’s price as the official price. In this regard, you should also consider comparing the prices on various exchanges and pick the one that offers the best value for your money.

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Ptr coin exchange

Here, it good to first note that 38.4% of Petro sold in a pre-sale private auction at a 60% discount before the official launch date. The pre-sale was made in cryptocurrencies and hard currencies and not local currencies, which are now accepted as a viable exchange medium.

Today, Ptr coins exchanged through various virtual exchange houses. A perfect example here is the state-sanctioned Cryptolago. More and more merchants providing goods and services also accepting Petro as a medium of payment and it is speculated that most Petro will be exchanged through this path.

Citizens, private and state companies can visit any virtual exchange selling Petro and purchase it using Yuans, Rubles, Euros, Turkish Liras and the major cryptos such as Bitcoin and Ethereum.

Ptr coinmarketcap

Ptr current coin market cap $1,432,905 with a fully diluted market cap of $1,435,863. Its current circulating supply is 63,993,275XPD. According to coinmarketcap.com, Petro’s market rank is currently at 1502.

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Petro cryptocurrency value

The average value of a barrel of oil is $62. Which is exactly what one petro backed with and sold at. This simply means that if Venezuela sells around 100 million Petro, they can raise more than $6 billion. With this kind of cryptocurrency value, there is no doubt that petro crypto is very crucial in improving Venezuela’s economy. It is a perfect example of what digital assets can do in improving a country’s economy, if supported by both the government and the citizens.

The Venezuelan government initially allocated 5 billion barrels of Venezuelan oil to back the petro crypto. How stable this petro value is, depends on the existing value of oil, gasoline and other related minerals such as gold. Since petro entirely pre-mined, its value also depends on what the government dictates.

The petro crypto’s value is helping Venezuela greatly in foreign trade. The country is, for example, able to pay for imports with this asset-backed cryptocurrency. An excellent example here is the Venezuela-Brazil trades where several Brazilian companies accept to export food to Venezuela and get paid with Petro.

As people continue accepting this crypto, more businesses and shops recognize it as a viable payment mode; its value will definitely rise. The speculation and trading volume around it will also contribute to value rise.

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Conclusion

So that’s all about oil backed crypto. Although the Petro crypto not fully developed, its future is bright. The government has great plans for this crypto and wishes that it will create an open, independent and transparent digital economy where all Venezuelans will have equal participation. In the international economic realm, this crypto focuses on creating a fairer financial system that will support and develop emerging economies. Investing in this crypto will definitely be a rewarding decision in the future as long as there will be no political influence on its market and usefulness.

Oil Coin Crypto Use in Commercial and Consumer Transactions

OilCoin appears capable of widespread utility and adoption for use in cross-border commercial transactions in oil and oil-related assets. Prior to the creation of Oil Coin crypto, no currency has been denominated in barrels of oil. As a consequence, parties to a forward or future purchase and sale of oil assets outside of the same country (or currency zone) must record their transaction in a national fiat currency with one or both parties forced to bear or hedge the risk of cross-currency volatility as well as fluctuations in the price of oil.

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A cross-border, future market-price, forward purchase transaction settled in OilCoin cryptocurrency is one example where this risk may be avoided.

Oilcoin price

Since the price of one Oil Coin price of one barrel of oil, pricing a future purchase contract in OilCoin enables the purchaser of oil to purchase OilCoin on the date on which the contract take effect. Also pay those Oil Coin crypto at a future date in exchange for a fixed quantity of oil.

In the absence of OilCoin, the purchaser would force it to hedge or bear the risk of changes in both crosses. Yes, currency rates and the price of oil. Similarly, to the extent that changes in oil price quoted in a national fiat currency are expecting to track changes in that national fiat currency relative to other fiat currencies, pricing transactions in OilCoin will be an effective means to avoid currency risk in ordinary commercial transactions even for goods and services unrelated to oil.

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Oilcoin in consumer transactions

At present, ordinary consumer transactions in digital currencies have had a significant appeal but limited adoption. This is due to a variety of factors, the most significant of which is the absence of a practical and ubiquitous solution which enables a consumer to pay for goods and services in digital currency and allow a vendor to receive immediate and guaranteed payment for a fixed amount of local fiat currency.

OilCoin has developed a partial but workable and highly effective solution to this problem through the use of branded debit cards supported by OilCoin’s valuable oil reserve assets. Under the OilCoin debit card program, a holder of OilCoin may reserve a portion of their OilCoin to support their crypto card issuance and use. From the vantage point of an OilCoin debit cardholder, their holdings of OilCoin will reduce as they make purchases. From the vantage point of the vendor, they receive immediate payment in full in local currency without making any modification to their ordinary business practices.

OilCoin cryptocurrency

OilCoin cryptocurrency is the world’s first U.S. based, regulatory compliant digital currency supported by verified oil reserve assets. OilCoin enables individuals and organizations to utilize a transparent peer-to-peer exchanged digital currency with intrinsic value based on oil. So oil -the most liquid and actively traded commodity and critical energy resource for the global economy.

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Each OilCoin cryptocurrency represents the value of one reserve barrel of crude oil. It will support by an undivided interest in a bundle of oil assets. It includes physical oil, oil futures and interests in oil-producing properties with an aggregate value approximating the aggregate value of all OilCoin in circulation.

Oilcoin – establishment causes

OilCoin structured with a view towards becoming the world’s leading safe-haven tokenized store of value. By linking each OilCoin token to existing and verified real-world assets, OilCoin enables holders of digital and fiat currencies seeking to preserve wealth, lock in the gain and/or avoid a loss to acquire, hold and transfer intrinsic value in digital token form.

In order to meet increased demand over time, the number of OilCoin in circulation and their supporting oil reserves are able to expand in tandem to maintain an approximate equilibrium between the USD price of a single OilCoin and single barrel of oil on global markets without diluting the interests of existing OilCoin holders. The embodiment of OilCoin’s store of value in a transferable digital token will enable holders to preserve wealth and engage in commercial and consumer transactions. Need to mention while avoiding volatility, inflation and devaluations associated with other digital or national fiat currencies.

Oil coin founder

OilCoin is founded and coordinated by a fully transparent, experienced and highly reputable team. It will manage the operations and development of OilCoin and act to ensure compliance with applicable laws of the U.S. and other jurisdictions. The OilCoin team includes Hon. Bart Chilton, long-time commissioner of the U.S. Commodity Futures Trading Commission, as well as other professionals with significant responsibilities in the fields of global financial regulation, compliance and management.

Oil coin cryptocurrency with Ethereum

OilCoin will drive by Ethereum-enabled blockchain technology in order to provide a robust and decentralized method of verification, tracking and exchange. The Ethereum blockchain is expected to provide an auditable and cryptographically secured global ledger and will facilitate transactions with other familiar currencies and assets.

In addition to the Ethereum blockchain, OilCoin will utilize audit methods to ensure that issued tokens supported by sufficient oil reserve assets at all times. Also, OilCoin will provide incentives to purchasers and sellers through customary sharing of transaction fees in the form of issuances of additional OilCoin.

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Oilcoin cryptocurrency advantages

At its core, OilCoin represents the peer-to-peer transferability of digitized commodity value. Also, OilCoin’s unique structure, verified intrinsic value and stable price provide meaningful economic benefits to its holders, purchasers and sellers.

  • (i) OilCoin will be a reliable store of value, medium of exchange and unit of account.
  • (ii) OilCoin will enable holders of other digital or national currencies to lock in gains and/or protect against ruinous declines in value due to inflation, volatility or currency devaluation.
  • (iii) OilCoin became an effective and tax-advantaged economic proxy for investments in oil. And to the extent of their positive correlation with oil, other commodities.

These characteristics, together with a continuous focus on transparency and regulatory compliance, position OilCoin to become the leading safe-haven digital reserve currency capable of appealing to global investors and consumers regardless of size, sophistication or capital base.