Re: [ANN] [MAJ] *Major Piece* *First coin to equal 1 Euro, no more, no less* 3/01/14
So who is holding the 1,000,000,000 Euros to back it? 
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.
It won't work due to person to person transactions, or even exchanges the dev doesn't have a relationship or an agreement with. For example, say I take all 10Mh and mine this coin during release. I decide to undercut the market by selling a large quantity at half a euro. Yes, a small transaction won't kill the market, but large transactions at less than value will destroy a currency. If you want or need any proof look at Argentina and what they've gone through for the past decade with their unstable currency.
There is a huge demand for a stable coin, but backing it with a centrally controlled infinitely inflating currency is not the answer. If he personally had 1 Billion Euro to back each individual coin, then yes, he could maintain parity with the Euro. But if not, it's just going to float like all fiat currencies do. The market will determine the value whether you or the dev like it or not. The ONLY stable currencies were those backed by precious metals. Unfortunately if you back a digital currency, you're setting yourself up for failure as we know central banks don't really care for competition. They'll use the excuse of bullshit money laundering laws to close down the precious metal warehouse, confiscate all precious metals, and for your trouble, send you to prison for a couple of decades.
I know there is no demand, because no one has asked for a digital currency backed by a fiat currency. Where is the demand coming from that is going to maintain the parity price the dev is advocating for? What store can I spend this digital currency in? Who is going to pay me thousands of Euro's if I decide to cash out? The moment you can't maintain that parity which you WON'T because the Dev doesn't have 1 billion Euro, and neither do the exchanges to maintain that price the currency will depreciate in value.
This is simple economics. What aren't you getting?
Lol, I just love the crypto world, it get's entertaining day after day
I want to create British Pound Sterling coin and will it on the whole world to accept British Pound Sterling coin for one British Pound simply because I said so! and it's going to work and stay stable when not even the fiat currencies themselves whom we all consider "stable" relative to crypto currencies which are actually BACKED by the economies of their respective countries can stay stable themselves. Look at the value of the dollar in 1920 and the value of it now.