Washington Org Warns Of Petro Coin Threat

Based on an article from Brookings Institute they have a dire warning for all cryptocurrency users!  They first take a shot at the very idea of it helping Venezuela in the first paragraph “the idea that the petro can ameliorate an economic crisis rooted in the bolívar’s volatility seems unbelievable”.  It goes on to say it is a threat to all cryptocurrency “petro will not only fail to cure Venezuela’s economic woes but will also weaken the integrity of cryptocurrencies writ-large”.  And my last but most favorite quote is what I think it’s really about “As Turkey, Iran, Russia, and other sanctioned countries deal with their severe economic impacts, they might pursue the same fraudulent strategy as Venezuela: create a cryptocurrency tied to a government-controlled asset, raise money in violation of sanctions, and proceed to manipulate that cryptocurrency’s value to maximize profit.”

While they do make some valid points governments around the world create their own currency usually without any backing of gold or resources out of thin error and continue to manipulate their currencies all the time.   To call Petro Coin over any other coin or ICO doesn’t seem to be based on anything other than political views. I think the article is highly biased and that Brookings is essentially the mouth piece for Washington and cannot be taken seriously.

The fact that Petro raised over 700M USD is significant and is less likely to be a scam than the other 90% of ICOs out there.  If I want to offer criticism of Petro I am frustrated that they don’t have their own top level domain for it and that they didn’t allow individual investors to get in on the coin.  As an investor when things are difficult and information is not easy to find I get frustrated and lose interest.  I think that is really the biggest risk to the Petro Coin.  I also disagree with larger countries sanctioning smaller countries who do not do their bidding since it just ends up creating poverty and suffering for the average person.

I am long Petro Coin if they can get more organized and get out better information.  Petro Coin stands to succeed if not for the reason that there are powerful backers of it.  Historically this been enough for the weakest of states, currencies and assets to continue floating on.  It’s also the same principle of what makes Bitcoin work, people have invested into it in different ways and it continues to be used although I do agree all cryptocurrencies essentially need an overhaul and they are certainly lacking in ease, functionality and security but his will be resolved in time.

 

IMF Wants To Regulate Bitcoin with Blockchain!

Christine Lagarde of the IMF has suggested “fighting fire with fire” by regulating Bitcoin with the IMF’s own blockchain technology.  I am not sure what they are proposing on a technical level or what this common is really based on, but let’s read between the lines of the intention.

This is very exciting news as it signals the IMF is acknowledging that cryptocurrency and Bitcoin especially are here to stay.  They wouldn’t regulate something that they don’t expect to survive.

Now the bad news is that the IMF may have something up their sleeves that slows or impedes Bitcoin and other cryptocurrencies from functioning as they should.  After all the IMF has also played roles that many of us do not think is constructive or fair to the countries that have used it.  If we apply the same scenario to Bitcoin it is time to get excited and scared at once.  It also seems disingenuous to imply cryptocurrency has a darkside while implying fiat doesn’t.  I get it and agree, fiat is better controlled so they like it but fiat is still used for crimes all the time.  If fiat wasn’t regulated under their control they would probably make similar statements about fiat instead of cryptocurrency.

The real question is what is the real intention?  Obviously as they’ve stated it is regulation but will the regulation make it so only the elite can trade Bitcoin or do they simply just want their own cut and control of cryptocurrency?  I think if we look at the history of their role and fiat, the truth will lay right in the middle but only as far as what they’ve decided should be the fate and role of fiat.  Both can coexist but do they intend for them to coexist or for one to roll over the other?

Either way announcements like this show us that cryptocurrency is certainly here to stay and it has caught the attention of the entire finance world.