Authorities in Iran Encourage Citizens to Invest in Oil, Winklevoss Disagrees
UTC by Chuks Chukwuka · 2 min read
The reality of the oil market didn’t discourage the Iranian president from trying to presell its 220 million barrels of energy to its citizens.
Authorities in Iran are encouraging its citizens to get more involved in investments in the oil sector. This is despite the fact that oil has not performed well as an asset this year.
The statement by the president of Iran, Hassan Rouhani, that was televised on Wednesday showed him say that the USD and gold were bad options for investors. He said that oil should be the investment choice instead.
Oil in Iran: the Only Good Investment?
However, the statement didn’t go down well with some in the coin community, among whom is Cameron Winklevoss who said that Bitcoin has performed better than oil as an investment instrument.
Iran’s economy has been severely hit by economic sanctions by the U.S. government. The coronavirus pandemic has not helped matters with the global lockdown that affected the price of oil. A statement from OPEC which has Iran as a member stated that oil is expected to fall by 9.1 million barrels per day.
Oil futures expected to be delivered through West Texas Intermediate fell by more than 100% in April. The futures contract was expected to expire last May. The negative value it returned was as a result of global lockdown that caused the oil market to take a plunge.
The reality of the oil market didn’t discourage the Iranian president from trying to presell its 220 million barrels of energy to its citizens. This though prompted the response from Gemini co-founder Cameron Winklevoss who in a tweet wrote that oil is not a reliable store of value.
Unlike oil, Bitcoin which lost value as a result of the market crash due to coronavirus has rebounded with gold. It is presently trading at $11,594 according to Coinmarketcap.
Encouraging Investments in Energy Exchange
The statement from the president of Iran is a reflection of the government’s new policy of encouraging investments in its energy exchange as a way to counter the effects of the economic embargo on the country.
The official website of the president of Iran recently wrote:
“The government, especially the economic board, has always been trying to adopt and implement policies and measures to control liquidity and direct it to the right path and production cycle.”
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Besides asking the People’s Bank of China to rescind its crypto ban decision, Huang also shared his insights on what the apex financial regulator needs to do to boost the relevance of the digital yuan.