Industry leaders have not fully understood this emerging relationship between cryptocurrency and oil. Still, it has some fascinating potential, considering how big this industry is becoming global. Visit the Home Page to get the best trading calls and much better use of artificial intelligence than other trading software. What is being called the “crypto-crude alliance” between Bitmex, PetroBLOQ, and HIVE Blockchain Technologies has been gaining momentum since its introduction. The alliance holds potential for oil producers and consumers to trade their crude in a mysterious market where prices are calculated through the price of bitcoin versus traditional barrel prices.
The order book created by these major players has allowed new arrivals to oil’s global market to connect with these Blockchain Technologies in an attempt to gain a piece of the growing cryptocurrency market. It is all happening against an ever-shifting backdrop of political instability and economic uncertainty, which continues to impact the combined $2 trillion petroleum industry. Let’s discuss the budding relationship of cryptocurrencies in the oil industry.
Oil and gas have been around for a very long time, and the need for this resource has grown as the world population has increased. It is why you see many multinational companies in this industry that are producing oil and gas worldwide. In addition, most of these multinational companies are publicly traded, which means investors can buy shares in the company.
Some investors believe investing in oil and gas stocks leads to good returns because of the increasing demand for oil and gas worldwide. However, others believe investing in oil and gas stocks isn’t too promising because those types of industries are high-risk due to expensive equipment, long payback periods, and government regulations. Cryptocurrencies and oil
The emergence of cryptocurrencies has significantly affected the demand and prices of oil. It is because cryptocurrencies exist in a market that doesn’t depend on central banking systems and allows users to buy virtual products online without government revenue collection agencies involved. It means you can now buy almost anything online with your cryptocurrency, including oil.
If you’re wondering how this is possible, know that some companies have introduced cryptocurrency liquidity to the oil market. Their business model exists to provide crypto traders access to raw materials such as crude oil by offering an asset-backed token for exchanges within multi-faceted markets ranging from agriculture, commodities, and energy.
Can cryptocurrencies bring revolution to the oil industry?
Cryptocurrencies are revolutionizing the oil industry. You can now buy crude oil by purchasing a cryptocurrency backed by oil, also known as “Crypto Crude Oil.” One of these new cryptocurrencies is PetroBLOQ (PQT), a digital asset that’s backed by barrels of oil and natural gas. The U.S. Securities and Exchange Commission (SEC) has already acknowledged PQT as an alternative investment option for investors. PetroBLOQ will be traded with Bitcoin,
Blockchain and Oil Industry:
The blockchain platform is changing the oil industry. With blockchain, the oil industry can improve its supply chain management, transparency, and safety. Blockchain will also make it easier for small companies to do business with larger companies without relying on third parties.
The transparency feature of blockchain will be a tremendous advantage for audit purposes. In addition, this technology is also expected to enhance quicker settlements and payments between buyers and sellers/suppliers.
Blockchain bringing a trustless system to the oil industry:
Blockchain will add a trustless system to the oil industry. For the first time, oil companies would be able to track “all assets and transactions, in real-time”, giving them an advantage over other industries. It also improves their transparency, which is a positive factor when dealing with international partners. Blockchain technology has been successfully applied in the global remittance market and the financial sector in different parts of the world. Therefore, it will benefit oil companies to adopt this new technology for their business applications.
Is Blockchain Technology Beneficial to Oil Companies?
Blockchain technology has seen significant growth since its inception in 2008 by Satoshi Nakamoto. Companies in the United States oil industry also plan to invest in the technology as it is considered beneficial. Some of the benefits of blockchain technology for oil companies include:
• Increased transparency.
• Better Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
• Greater collaboration with stakeholders.
• Improved forecasting accuracy.
Few agreements between blockchain and the major oil companies have been reached yet, and it is a massive possibility that major oil companies might enter into agreements with blockchain organizations soon to improve their operations. Blockchain and the energy industry will work as per gas contracts, which are also set up on intelligent contracts ensuring that every detail is recorded on the blockchain ledger and available to all parties involved in the trade.