Re: [ANN][URO] A Real Long Term Currency: 1 Uro = 1 Metric Tonne Urea Fertilizer
Here's an analogy that will help concerned people understand why a urea seller today would accept 12,500 URO for 12,500 tonnes or urea when the price of URO is so low...
It's simply a permanent store of wealth. Urea has a limited shelf life. The producer can't store urea for 5 years then sell it so what can they do to retain their value? Simple, accept 12,500 URO for equivalent purchase of urea today.
Take a look at gold in 1900, it was only $20 usd per ounce but is stable today well over $1000 usd per ounce. http://www.onlygold.com/coins/Gold-Double-Eagles.asp
In 1900 a lot of experts knew that the value of gold had the potential to reach over $1000 but they weren't willing to pay it because they can keep the gold for 100 years because gold will last 100 years. The is really no difference between gold and URO except for one major feature. URO protocol means that 1 URO = 1 tonne of urea. Obviously URO will last forever (like gold) and it's a store of wealth. Even if it takes 100 years to reach $300 per URO it's still a store of wealth. With URO you have the option of accepting it for urea and keeping it or you can go out any day in the future and get 1 tonne of urea or sit on URO for 100 years and watch it reach 300 usd. The interesting thing is though what happens if there is some world event that causes market price of 1 tonne of urea to reach $1000 per tonne? Simple, now 1 URO = $1000
....
Look at what happened to the phosphate market (also a component of fertilizer). In the mid 2000's phosphate skyrocketed in price from $50 per tonne to almost $450 per tonne. This could happen to urea prices, there is no reason that they can't skyrocket to over $3,000 per tonne
http://www.infomine.com/investment/metal-prices/phosphate-rock/all/
So in theory if you own only 10 URO and some earthquake or drought causes a lower worldwide supply of urea and send urea price to $3,000 per tonne your 10 URO are now worth $30,000 USD !!
It's simply a permanent store of wealth. Urea has a limited shelf life. The producer can't store urea for 5 years then sell it so what can they do to retain their value? Simple, accept 12,500 URO for equivalent purchase of urea today.
Take a look at gold in 1900, it was only $20 usd per ounce but is stable today well over $1000 usd per ounce. http://www.onlygold.com/coins/Gold-Double-Eagles.asp
In 1900 a lot of experts knew that the value of gold had the potential to reach over $1000 but they weren't willing to pay it because they can keep the gold for 100 years because gold will last 100 years. The is really no difference between gold and URO except for one major feature. URO protocol means that 1 URO = 1 tonne of urea. Obviously URO will last forever (like gold) and it's a store of wealth. Even if it takes 100 years to reach $300 per URO it's still a store of wealth. With URO you have the option of accepting it for urea and keeping it or you can go out any day in the future and get 1 tonne of urea or sit on URO for 100 years and watch it reach 300 usd. The interesting thing is though what happens if there is some world event that causes market price of 1 tonne of urea to reach $1000 per tonne? Simple, now 1 URO = $1000
....Look at what happened to the phosphate market (also a component of fertilizer). In the mid 2000's phosphate skyrocketed in price from $50 per tonne to almost $450 per tonne. This could happen to urea prices, there is no reason that they can't skyrocket to over $3,000 per tonne
http://www.infomine.com/investment/metal-prices/phosphate-rock/all/
So in theory if you own only 10 URO and some earthquake or drought causes a lower worldwide supply of urea and send urea price to $3,000 per tonne your 10 URO are now worth $30,000 USD !!
This explanation completely flies in the face of the reality of business.
Urea sellers are not speculators, and if they were they wouldn't be stupid enough to take a risk on Uro anyway.
They have bills to pay on a daily basis that get paid by selling Uro that day. They may take profits but their margins are not anywhere near being able to give urea away for free for 5 years. Holy shit a 10 year old wouldn't buy this.
Every day they have bills to employees, utilities, taxes, many other expenses. They pay these with sales of urea that occur with an immediacy that does not allow for speculation. End of this ridiculous point.
I understand what you're saying for sure. They can pay the bills with the thousands of dollars that they save in broker fees, bank fees and all of the middlemen along the way. The buyer of urea would even be willing to pay a fiat surcharge under the table for the shipment if it stills saves them money at the end of the day. URO will allow for the transfer of wealth from the middle men to everyday people. They will have plenty of money to pay their bills. Most of these companies are sitting on millions of dollars of assets anyways.
Ok so I import from China to the UK a lot, this is how it works.
I send a CHAPS payment from my bank to a forex agent for 25GBP this can be for any amount.
My forex agent gives me a price that is literally a couple of pips of interbank rate and charge me a 10GBP wire fee to send to the receivers bank.
I can send a million GBP to China and I get charges of 35GBP and get near enough interbank rate because my forex agent can buy straight off interbank markets, he takes about 0.01% as his cut
Not only that but I can book forwards of as much as I want so when GBP USD hits a high, I book it forwards and actually get much better rates than I would in future.
there is no thousands of dollars in bank and brokers fees.
Do you ever doing an LC order yet? I have doubt. If u did then this will be clear to you about bank fee. This is not about direct purchase- its different.
yeah I have used letter of credit before. generally LC is not necessary when dealing with well known suppliers within a closed industry
Also, if you feel the need for the security of a letter of credit. Why would you do a buy with crypto?
I don't understand how do u make big EXIM without LC? My personal experience as an importer I didn't see this except some little(below 10K USD) shipment. Without LC how do u clearing ur goods from customs....
