World’s First Bitcoin-Based Oil Market Launched – Will It Be A Success?

Every country needs US dollars if it wants to buy crude oil. This may soon change as a market selling crude oil for Bitcoin has emerged.
The term ‘petrodollar’ has been thrown around since the 1970s. Dollars for oil have been the principal source of earning for many oil producing nations in the Middle East, as well as in other parts of the world.
However lately the petrodollar has been under a considerable amount of strain. Many have predicted its imminent demise based on a multitude of reasons such as Iran wanting to be paid in Euros for its oil sales, and the Russian President Vladimir Putin trying to get his country to move away from pricing its oil in the US currency.
Yet among all of these developments perhaps the biggest alarm bell that has been ringing for the petrodollar has been the strained relationship between Saudi Arabia which is the fiefdom of the house of Saud and the United States.
A sweetheart deal gone sour
It has been the case for decades that the US and Saudi have had an understanding which involves the US protecting the House of Saud and, in return, the Saudis only pricing their oil in the US dollar.
Moreover, the Saudi Arabian currency the Riyal and several other Gulf Cooperation Council (GCC) currencies are pegged to the US dollar. This pricing of oil in dollars has made the US currency the world’s reserve currency of choice. However, things are not well between the US and Saudi Arabia of late with the Wall St. Daily reporting:

This post was published at Coin Telegraph on 2016-08-24.