Cryptocurrency market has lost $45 billion in total, bitcoin still stand on top and the value of other cryptocurrencies are volatile. As on December 03, 2018, the Venezuelan president, Nicolas Maduro has increased the price of Petro cryptocurrency with 150 percent. Petro is the national cryptocurrency of Venezuela which was valued 3600 sovereign bolivars to 9000 bolivars.
In a similar concern, Mati Greenspan, eToro’s Senior market analyst scorned on Twitter, tweeting that “the petro is not a cryptocurrency”. In his latest tweet, Mati defines “free market does not work like this’. Tweet states that;
You can't have your cake and eat it too.
If the Petro is tied to the price of oil, then the President can't announce the exchange rate on television.
That's simply not how free markets work guys.
The Petro is not a cryptocurrency!!!https://t.co/fgYY4mCbIu
— Mati Greenspan (@MatiGreenspan) December 3, 2018
Petro cryptocurrency of Venezuela has long been criticized by many since its launch. However, during August, the president linked Petro price with the national currency of Venezuela, called sovereign bolívar,.
Consequently, he quoted that;
“Each petro, as the anchor point of the sovereign bolívar, will have a value of 3,600 Bs.s,”
Following his announcement of increasing Petro price, Leonardo Buniak, an economist explains how this revised pice devalued the sovereign bolivar, elaborating that;
Anchoring the bolivar to the petro is anchoring it to nothing.
Leonardo Buniak Agreed Mati
While Mati said if the Petro is tied to the price of oil, then the President can’t announce the exchange rate on television, Buniak strongly asserted that the price of any cryptocurrency will fluctuate based on the demands and supply. He said the Petro cannot be cryptocurrency because its price was not fluctuated based on demands and supply rather President Maduro finalized it. He explains that;
When the president decrees that a petro is worth 9,000 Bs.s, what he is saying is that the petro is not a cryptocurrency but a debt title that is predetermined, [which] cannot be mined. It is impossible to think that it is a cryptocurrency when its value is not given by the interaction between supply and demand.
Despite such criticism, the crypto regulator called Sunacrip in Venezuela is selling virtual currency at his headquarters. Accordingly, buyers are responsible to provide KYC verification to get this digital currency issued.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com