Effects Of Cryptocurrency On Oil

There was a small revolution in the Bitcoin world; futures began to trade on the Chicago derivatives exchange.

Cryptocurrencies forecasts

This is an excellent step for cryptocurrency; Bitcoin has entered the select club of goods traded on international markets. SERIOUS people, banks, investors, etc., wanted to trade Bitcoin in their needs, and now they can.

But many may wonder what exactly futures are? And what does it mean for Bitcoin to have futures trading? Next, what are lots? A future is a financial product within what is called a derivative.

A financial derivative is an asset whose price depends on the cost of another purchase, called the underlying. The relationship between prices is known.

More details about this at bitcoinnewsmagazine.

Futures are a type of derivative in which two investors agree to buy or sell an asset (the underlying) in the future, now setting the conditions of the purchase or sale (hence the name, futures).

Traders buy cryptocurrency oil futures amid record volatility; as oil surpasses Bitcoin in price volatility, FTX has launched West Texas Intermediate-linked oil futures contracts, plus $ 100.

Binance-owned cryptocurrency exchange FTX has introduced oil futures following the recent record drop in US oil prices, which fell as much as $ 40 on April 20.

FTX launches crypto-based oil contract trading; FTX comprises a top-notch Bitcoin (BTC) futures exchange by volume and open interest. As a result, Binance exchange is the most extensive offering of crypto-based oil contracts.

Oil volatility dwarfs that of cryptocurrencies, but what are crude oil futures and options?

When people think of oil prices, they generally think of what it would cost to buy oil right now.

In a standard retail environment, the price you buy something at, known as the spot price, is listed.

Actually, the price of publicly traded oil reflects the future cost from a specific location.

What are oil futures?

Like many other raw materials, wholesale producers must set a price before delivering it to the consumer when it comes to oil.

This allows them to better manage expenses and predict costs.

The blockchain continues to be the promise of the future money, and the petro-currencies, based on oil, seem to arrive wanting to stay.

Cryptocurrencies are becoming more and more, and the continuous fluctuations of Bitcoin keep the issue of virtual currencies in the first pages of the economy.

What are Petro coins?

It is a type of cryptocurrency, a virtual payment method, which Venezuela has launched in the midst of one of the greatest crises in its history.

It is an oil cryptocurrency, also known as a petrocurrency because it is used for oil transactions and to determine the price of crude oil.

This type of currency is neither minted nor physically printed but is generated through different processes of computer calculations.

Did you know that Petro coins, or simply Petro, are the first crypto active promoted and issued by a government?

Its origin dates back 10 years ago, when the then-president, Hugo Chávez, proposed the creation of a currency whose valuation pattern was oil instead of gold or fiat dynamics.

In the specific case of the Venezuelan petro-currency, this is only guaranteed with a high volume of the country’s oil reserves.

Therefore, in the beginning, President Nicolás Maduro proposed the Orinoco Belt, a budget of heavy crude, consisting of a resource of 5000 million barrels in said deposit.

It is said that the more extensive the network of petro coins, the more secure your transactions are.

How much do petro coins cost?

The answer is totally variable, depending on the moment.

Petro coins price is based on that of a barrel of oil, which is based on the sale value of the resources that support the petro in the international market.

It is essential to monitor this economic strategy used by the Venezuelan government since the petro represents the only cryptocurrency supported by the value of a real asset.


This innovation places Venezuela among the friendly countries with cryptocurrencies; the petro arises as an option in the critical situation that the Caribbean nation has gone through.

Moreover, it can undoubtedly represent the future of oil and its commercialization.

This is good news for the crypto world!


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