What is PetroDollar (XPD) Crypto Beginner’s Guide
PetroDollar is a decentralized, blockchain-based cryptocurrency that is the world’s first regulatory-compliant digital currency that is supported by independently certified oil and gas reserves. The coin enables both individuals and organizations to utilize a peer-to-peer digital currency that is backed by the value of crude oil and natural gas, which are the most actively traded commodities in the world. Each PetroDollar token represents the net value of one reserve barrel of crude oil or its natural gas equivalent.
PetroDollar has been developed with the central goal of becoming the world’s leading safe-haven tokenized store of value. By linking each token to existing and verified real-world assets, PetroDollar enables holders to preserve wealth, lock in gain and avoid loss, and transfer intrinsic values in digital token form. PetroDollar is issued in accordance with relevant laws and is linked to physical assets, not thin air, like a lot of other cryptocurrencies.
Since PetroDollar is linked to physical assets, it is expected to be more price-stable and is backed with leading-edge, world-class technology since it is built on the Ethereum blockchain and the Ethereum EC20 protocol. There are strong security features built into the coin to avoid token theft, and all transactions are fully transparent and audited. Ultimately, PetroDollar brings the crypto world to meet with the oil world, and produces a token that promises a lot of benefits for both individual consumers and businesses.
The History of Oil-Backed Cryptocurrencies
Surprisingly, PetroDollar isn’t the first globally compliant digital reserve currency; OilCoin was developed in 2017, which offers similar benefits for global investors. Both OilCoin and PetroDollar follow El Petro, which was announced in Venezuela by President Nicolas Madruo. Unfortunately, El Petro came with high criticism and was accused of being illegal. Despite its issues, El Petro did inspire people and raise interest; OilCoin and PetroDollar aim to be legal and to follow tax laws, to provide interested parties with a legal coin backed by the oil industry.
In March 2018, Signal Capital Management announced the launch of the PetroDollar cryptocurrency (XPD), and PetroDollar followed El Petro as a digital currency backed by the value of crude oil and natural gas.
Features of PetroDollar
PetroDollar is backed by Ethereum-enabled blockchain technology, and provides a decentralized method of verification, tracking, and exchange; it is an oil-based coin that is truly decentralized and secure with the latest technology. Ethereum provides a cryptographically secured global ledger that facilitates transactions. PetroDollar aims to be a reliable store of value, a medium of exchange, and to be an effective and tax advantaged proxy for investments in oil.
In order to meet increased demand, the number of PetroDollars in circulation is able to expand to match an equilibrium between the USD price of a single PetroDollar and a barrel of oil. Holders can preserve wealth while avoiding volatility and inflation.
PetroDollar is in a unique position to be the leading safe haven digital reserve currency in the world. With features that appeal to both global investors and consumers, PetroDollar is where the crypto world meets the oil world. The coin represents the future of digital currency.