Quote from: kriptokraker on May 21, 2018, 11:41:32 AM

Quote from: jgaltt on May 21, 2018, 11:23:49 AM

So, now after Maduros win a new wave of sanctions is about to come, will it affect El Petro?

I dont know why people here ignore the fact that Venezuelan oil industry is having a really hard time at least, whereas this particular crypto is oil-backed. I dont see how Venezuela will survive a new pack of sanctions

The difficulty Venezuela oil production has is from efficiency and refinement required to be profitable. Ive heard of alot oil reserves similarly not easy to extract or utilise but any industry depends on an efficient process imo. It is helped some by the rise in oil prices recently, thats related to the Iran deal and ongoing troubles in Libya and Nigeria. Both of which are part of OPEC I think though not sure they signed up to the last agreement.
This currency circumvents the sanctions partly because its no longer requiring dollar or Swift clearance to take place. Thats probably a large part of the incentive because I was pretty sure crypto mining was previously heavily discouraged.

I dont know how they can fix the efficiency problem, they have greater leeway now fairly sure but long term thats going to continue to be a factor. I believe in competitive industry personally not central government solutions