Oil is undoubtedly one of the most coveted resources worldwide, often being a source of conflict. The use of hot and cold wallet investments on websites like bitcoin-360-ai.org is safe and reliable.
It was the origin of industrial economies in the 19th century, thanks to the property of containing a large amount of energy in a small and easily transportable volume.
Importance of oil in the world
For the last thirty years, oil has been competing with other energy sources and will continue to be an essential commodity in our daily lives for many years.
According to Daniel Yerguin, oil is the largest business worldwide and one of the great industries that emerged in the last decades of the 19th century.
For its part, the price of oil continues to be a variable for the functioning of the world economy because this product is the most traded internationally, both in volume and value.
The United States, for its part, is fighting with all its might to ensure control by its companies of the world’s gigantic oil reserves so that oil continues to be traded in dollars and, with this, sustain the dollar as a global currency it is issuing Treasury securities, which increase its debt thus financing its deficit economy.
The importance of oil in international relations as merchandise in world trade is publicly demonstrated as it is a strategic product that fulfills decisive functions in countries’ economic and social life.
Changes in oil marketing processes
Some of the largest producers, operators, and banks want to abandon the usual system of processing cargo documents and other registration forms required for each transaction.
These require a significant amount of time, making the processes slower, in which the bosses and the employees in charge of administrative operations are responsible for reducing costs and facing tighter profit margins.
The oil industry is looking at methods to track and verify cryptocurrencies like Bitcoin through a more extensive and shared online ledger, the so-called blockchain.
Documentation used in title transfers and post-transaction enforcement is littered with paperwork and red tape, where such paperwork has not evolved in the last two hundred years.
The appeal of these big online ledgers is that transactions are recorded using encryption to ensure security and that the user network can see the history of each transaction.
In addition, it is assumed that if one of the blockchain and cryptocurrency technologies is carried out, the procedures and operations would be free of commissions for executed transactions, an extremely beneficial fact for oil countries.
Although it is considered too early to talk about the sale of energy resources in cryptocurrencies, not all countries have the same position regarding this statement.
The easing of the fall in demand affects all oil producers globally. Still, the impact is felt more in those with greater dependence on crude oil, such as Venezuela, Ecuador, and Colombia.
The first cryptocurrency for oil operations
That is why during the cryptocurrency frenzy led by Bitcoin and during a severe economic crisis, the socialist government of President Nicolás Maduro made an innovative and risky decision that officially began operating on February 20 with the pre-sale phase of raw.
The first cryptocurrency issued by Venezuela, the Petro, was created, the first launched by a State.
The Petro is used as a source of financing when the country’s income falls due to low production and the reduction in oil prices, the principal and almost only source of foreign currency income to the country.
The petro has as its reference value the price of a barrel of oil, of which Venezuela is considered the country with the largest proven reserves in the world.
In turn, the sale price of the petro will continue to depend on an agreement between those interested in the pre-sale and the government; This shows that everything indicates that in the not-too-distant future, the commercialization of crude oil worldwide could be carried out in cryptocurrencies.
Conclusion
Oil exchange with Bitcoin or cryptocurrencies has created great expectations in oil-producing countries; consequently, inflation has severely affected many. Therefore, this type of digital currency would play a key role in valuing such a valuable resource.
In addition, it would be of great help to countries that, in one way or another, base their income on the production of crude oil, managing to protect their capital without being controlled by international organizations that benefit from large commissions for the million-dollar transactions that this type of commercial operation generates.
