Business 16 January 2019

Erik Gibbs

Maduro proves he has no concept of economics

Venezuela, led by a former bus driver who took over power following the exit of the country’s former dictator, has not done much to show that the man is capable of handling much more than a steering wheel. Nicolas Maduro drove the nation’s economy into the ground, leading to massive reports of lack of basic necessities among citizens, including food and medical care. Convinced that he could still save the country (and, most likely, face), he decided to introduce a digital currency that would make everything right. The Petro, which coincidentally mirrors almost exactly the Dash cryptocurrency, has not handled the task very well, so Maduro has taken the exact same steps he took with the Bolivar to try and improve the digital currency’s position. In less than two months, he has increased the price of the Petro, leading to even greater inflation and less economic stability.

Last month, Maduro increased the Petro’s price 150%, raising it from 3,600 bolivars to 9,000. Now, the Petro is valued at 36,000 bolivar – an increase of 300%. Compared to the U.S. dollar, however, the Petro is still worth only $60.

It is becoming more apparent that Maduro doesn’t understand the fundamentals of balancing an economy. Venezuela’s minimum wage is tied directly to the Petro and recent increases are going to produce higher minimum wages. However, businesses aren’t going to be willing to eat those costs and will raise their rates for all goods and services to make necessary adjustments.

Economists point out that the increase is going to further ruin an already-ruined economy. Given that the bolivar-to-petro valuation has changed – and not the dollar-to-petro – they assert that Petro is nothing more than an “instrument of depreciation.”

Venezuela is on the verge of collapse. The introduction of the Petro has done nothing to help the country turn around, but it has helped Maduro and a few of his cohorts continue to live a life of luxury while the citizens he swore to protect and serve are starving and succumbing to illnesses. Although he assured the people that he would not follow in the country’s former dictator’s footsteps, it is now more than apparent that Maduro’s only interest is his own self-preservation.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

‘Irresponsible tweets’ land John McAfee in hot water with Skycoin

Business 22 March 2019

‘Irresponsible tweets’ land John McAfee in hot water with Skycoin

Skycoin has responded on Twitter that it John McAfee’s comments about “whale f--king” that actually led to the project being forced to sever ties with the cryptocurrency influencer.

Read More
Watch out: Fake Wasabi crypto wallet out to steal your crypto

Business 22 March 2019

Watch out: Fake Wasabi crypto wallet out to steal your crypto

The scam wallet is an uncanny clone of the real Wasabi wallet. It comes with a fake website and for those who are not keen, it's almost impossible to distinguish between it and the real one.

Read More
UPS partners with blockchain startup for B2B platform

Business 22 March 2019

UPS partners with blockchain startup for B2B platform

UPS, a global leader in logistics, announced a partnership with Inxeption that targets B2B merchants.

Read More