• dmelczer

If You're In The USA, Stay Away From The Petro!

This blog post probably shouldn't need to be written, but I've seen a number of cryptocurrency investors online in recent days talking about investing in the Petro. So, let's have a quick refresher course here: The Petro is a cryptocurrency created by the nation-state of Venezuela, backed by Venezuelan oil (allegedly) for the express purpose of circumventing international sanctions. Among the sanctioning countries is the United States, and by purchasing any quantity of Petro crypto, you are purchasing the debt of what the United States considers a malicious state actor. Supporting via words is one thing, supporting financially is quite another. In the eyes of the State Department of the United States, by purchasing a Petro you have committed treason. Yes, treason. While the penalty for financially supporting Venezeula probably won't be a firing squad, you can absolutely expect swift an harsh penalties if you're caught trading in the banned cryptocurrency. A spokesman for the State Department has warned that, "The Petro digital currency would appear to be an extension of credit to the Venezuelan government...[and] could therefore expose US persons to legal risk. It is another attempt to promp up the Maduro regime, while further looting the resources of the Venezuelan people."

Allegedly, the Petro has generated about $735 million for Maduro's regime. In terms of national debt for Venezuela, that is a significant sum, although nowhere near enough to stabilize anything in the country. However, if Venezuela does manage to raise a considerable sum, US traders of cryptocurrency -- and undoubtedly those in other countries -- can expect far greater scrutiny from regulators.

Consider this just a friendly reminder of what you should probably already know. Before investing, please do your own due diligence and learn about what you are investing in. Never invest in something that you do not understand.

1 view0 comments

Recent Posts

See All

Cryptocurrency has had a prolonged bear run since January of 2018. Many have lost faith, and may have sold their investments. If you've managed to hold (or HODL) through all of this recent turmoil,

Over the last week, cryptocurrency markets have seen a sharp downturn, led by Bitcoin's almost 8% sell-off, dropping the currency below the $8,500 price point. While often the cryptocurrency market s