Ninjastic
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Board Announcements (Altcoins)
Re: [ANN] [MAJ] *Major Piece* *First coin to equal 1 Euro, no more, no less* 3/01/14
by
42Dice
on 08/02/2014, 03:04:13 UTC
Quote from: Hapex on February 07, 2014, 09:13:34 PM
Quote from: MisO69 on February 07, 2014, 09:04:26 PM
Quote from: MajorPiece on February 05, 2014, 05:59:07 AM
Quote from: Scooby903 on February 05, 2014, 05:57:51 AM
So who is holding the 1,000,000,000 Euros to back it?  Cheesy

Who is holding the gold to back up the USD? Who is holding the funds to back up Bitcoins?

How exactly are you going to keep the price at 1 euro?



As my explanation above details, he(they?) won't be able too. It'll be a speculative vehicle like all other crypto's. With no demand outside of alternative crypto exchanges, he/they will never maintain stability. Law of Supply and Demand is a brutal teacher. If he/they release the coin as is currently planned, he/they will see really quickly the law of supply and demand will take hold and if there is no backing, and no demand for his/their currency it will collapse.

He/they has no understanding of currency stability or backing at all.. It's pretty apparent.

There hasn't been gold backing the USD since the Nixon Shock of 1971 Nixon severed the gold standard and replaced it with the Petro Dollar.

Ever since then the dollar only has value because OPEC only accepts dollars for their oil. If OPEC were to take a basket of currencies other than the dollar, the dollar would collapse over night. The ONLY thing that gives the dollar value is the DEMAND for oil. It's a great scheme, but it's doomed to failure.

If the devs get this into exchanges at a flat rate and allow it to be traded with other alt-coins I could see it working, but that's the only way. I think it would provide a lot of benefits and people would do it. There are so many advantages. I also like his giving some one 3 quarters for a dollar does not crash the value of the dollar example.

You say "if there is no demand" What if there is a large demand. Because there is a large demand for a stable coin. Bitcoin took forever to take off but it did slowly one person at a time. Why wouldn't that be okay with this?

The dollar = oil. What about Euros?

Also I don't think this is meant to be different than the Euro to the poster above this one. I think it's meant to be an online version of the Euro.

EDIT: I don't understand why everyone keeps saying there's no demand. How do you know? I personally think there is a HUGE demand for a stable coin. Maybe it won't have quite a lot at first but it may grow.