How Bitcoin is The Answer To Venezuela’s Stuck-At-Sea Oil Supply

Tony "The Bull" Severino

4 years ago

2 mins read

bitcoin venezuela oil tanker supply shutterstock_789254620

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Bitcoin solves many problems, from monetary policy mishandling to acting as the first decentralized store of wealth.

But could it also be a solution to Venezuela’s sanctioned and stuck-at-sea oil problem? Rather than aimlessly floating at sea, the oil could be put to much better use.

Venezuela Has Over 18 Million Barrels Of Sanctioned Oil Floating At Sea

It’s a phrase used so often, it is commonly used sarcastically or as a joke: Bitcoin is the answer.

But the first-ever cryptocurrency truly solves many problems. It also may provide a profitable solution for the cash strapped Latin American country of Venezuela.

Venezuela is one of many countries under strict sanctions from the United States. The US has been applying pressure to the country recently, seeking to cut off revenue flow to the regime.

President Nicolás Maduro launched a cryptocurrency backed by oil, the petro, in an attempt to skate sanctions. Trump banned the cryptocurrency in the United States.

Due to the sanctions, and conditions in the oil market, Venezuela has over 18 million barrels of oil just floating at sea.

This amounts to roughly two months of production in the country, unable to be monetized due to sanctions.

Countries won’t do business with Venezuela over the fear of US retaliation, and the demand for oil is weak.

Months ago, oil fell to negative prices due to the related storage costs associated with owning the commodity.

It is one of the few assets that can trade at negative pricing. However, few ever expected it to do so.

Exporting oil was inefficient

Now it’s simply ridiculous

Venezuela must start exploiting its resources internally

Just refine that oil into diesel, use diesel to generate energy with our vast gas turbine infrastructure and create money out of that energy with $btc mining farms https://t.co/XdZCtQ5rUf

— Beachain (@beachainbtc) June 26, 2020

One Simple Trick To Revenue: Refine Oil, Burn Diesel, Get Bitcoin

Rather than floating aimlessly, this oil could be converted into diesel fuel. The diesel could be used to power turbines, that generate energy.

Energy is the key ingredient to Bitcoin mining. And it could be the solution to Venezuela’s revenue problems.

This oil, instead of being stuck at sea, would be put to much better use. Generating Bitcoin through mining that is fueled by their oil supplies could be highly profitable.

Venezuela needs badly needs a solution to their monetary issues, and Bitcoin is increasingly the answer. Not only could the government benefit from the cryptocurrency through mining, but its citizens rely on it too.

The country’s fiat currency has been in a death spiral. The country also tightly controls its hyperinflated monetary supply.

More and more citizens in the county have turned to Bitcoin as a result.

So while the phrase “Bitcoin is the answer” is often mocked across the web, for Venezuela, it provides many solutions.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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