Venezuela to replace dollar with oil backed crypto

Sure, but not BTC. It's a shitcoin that can't scale and has too many technical problems for widespread use. Even if banks adopt cryptos it's going to be as software services, not a tradeable item. See HP's Distributed Ledger System.

Venezuela has the biggest proven oil reserves on earth, their problem being:
1) It's shit-tier quality oil which costs a lot to refine, pretty much everything that is mined has to be exported to the US, which is probably the only country with that kind of technology, and then bought back at very high prices.
2)It is mined very slowly (and thus sold in relatively small amounts) compared to other oil exporters like Saudi Arabia, because Venezuela's oil industry was only nationalised fairly recently and was highly reliant on foreign oil companies before that.
Is Peak Oil does happen Venezuela should be one of the biggest beneficiaries, even with its less than ideal industry.

So with their new oil currency, aren't they going to be even more dependent of the US?

Yep, they can't profitably extract it when prices are low. No one will buy heavy crude that costs 50$ a barrel to process when better crude is available at similar prices. When their oil became unprofitable to sell, their government suddenly had 90% less revenue and shit hit the fan.

I considered saying "or an altcoin" but I ended up editing and forgot it. I dont know the intricacies, but if a no-value e-coin can be worth 18k a state-backed coin has to positively effect value. Sage for little content.

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What a meme. You can't blockchain your way out of macro economic trouble and encirclement.

tfw you don't know what to do with your oil so you burn it in generators to power bitcoin shovels

You can't fight the dollar's monopoly on oil by creating a new currency and giving it a monopoly on oil. People are just going to use dollars to buy up your shitcoin and then buy up your oil. what is this shit? What it going so wrong in the development of venezuelean brains?

They should just start exporting all their oil to the DPRK tbh, they would make better use of it.