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Venezuelan economy to get a boost via Petro-backed funds proposed by Maduro

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Venezuelan President Nicolas Maduro seems to be bullish towards cryptocurrencies as the country has been taking steps to utilize the digital assets to recover from its economic instability. The President took to YouTube to reveal that he would be producing various government funds and would be designated in its cryptocurrency, Petro.

On 16 October, Maduro elaborated on how he would be allocating resources to every state’s managing division. He further said,

“I am assigning 1 million bimonthly petros as of November to all the states and the protectorates—through the corporations we are going to create—as an investment modality for their free use in the attention of their priorities. In concrete terms, this means, my compatriots, that we are assigning between 1,354,000 euros and 3,249,600 euros to governors and protectorates.”

Agricultural and industrial developments were also a part of the creation of the Petro funds, Maduro added. Furthermore, the funds would additionally be utilized for procuring raw materials as well as supplies that cannot be purchased via traditional methods following a block on the country’s account.

As per reports, the 1 million Petros would be accounted for agricultural development while 600,000 Petros would be used for inputs and machinery and about 4 million Petros would be allocated to the telecommunications sector. President Nicolas Maduro would additionally allocate about 9 million euros in Petro for over seventy road work projects while 2 million dollar worth of Petros would go to a joint fund with China.

Recently, Maduro revealed that the country was coming up with a Bitcoin-based payment method. The latest development in the country seems to be a move to shield themselves from the US sanctions.

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee

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Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.

According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,

“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”

When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.

“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”

According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.

“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”

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