The Petro has been a great unknown since its creation 2 years ago. It even generates more doubt and concern than the recent Bitcoin Halving. Can Bitcoin Halving influence the price of the Petro?
As is well known, the rhythm that is danced to in the several pieces of legislation / doing away with it entirely / surge in interest / trading at $10,000 / coinbase’s contingency plan / back in 2020 / start of civil rehabilitation / a federal class-action lawsuit / delisting of privacy coin zcash / forced to delay is set by Bitcoin, while all other crypt currencies only dance to the beat of the world’s first crypt currency. Well, at least almost all of them.
There is one exception that is not small. It is the case of the stablecoins, those cryptomonkets that are anchored to the value of something, usually currencies like the dollar. This is the case of Tether (USDT), Binance Dollar (BUSD) and other stablecoins.
These crypto currencies have the characteristic of not varying in price over time, or at least not like Bitcoin (BTC) does. But where do we leave Petro (PTR)? Can Bitcoin’s Halving influence the price of Petro?
Stablecoins are evaluated by BCR
Can Bitcoin’s Halving influence the price of Petro?
The Petro is a rather unique case in the world of cryptomontages. First of all, its value is not „as floating“ as if it were Bitcoin’s. But, at the same time, it is not as stable as stablecoins anchored to a foreign currency.
Petro, on the other hand, is based on Venezuela’s oil, gold and diamond reserves 🇻🇪. The South American country has the largest oil reserves in the world, and one of the most productive lands in gold and diamonds of all.
Therefore, the fact that it has a varied basket of minerals should make its price float, but not so much. At least, that’s what the changing White Paper on Petro tells us, although we know that the reality is different.
What is Halving?
Simply put, this process reduces the amount of Bitcoin that BTC miners get by mining each block within the Blockchain.
The Bitcoin blocks are what form the BTC blockchain network, and all transactions validated by these crypto miners are recorded.
Every time an exchange occurs, no matter how tiny, it is recorded within a block that will later be incorporated into the Blockchain.
This process of transaction and block validation is associated with the resolution of a very complex mathematical problem, and the crypto miner that can most quickly solve that operation, which is linked to each transaction, will validate it and include it in the block. For doing so, you will receive a reward.
This reward is the only way to create new Bitcoins. Today, thanks to Bitcoin’s Halving, this number has been perfectly halved, from 12.5 to 6.25. Can you influence the Petro?