The idea we have here is actually quite simple but some people appear to be over thinking it.
How is using market dynamics and PURE FACTS over thinking your coin will never maintain parity with the Euro? You want to wager some BTC on that?
While we say that we are designing a stable currency, we are not designing a currency that is completely stable, that would most likely be impossible. What we are essentially doing is designing an online version of the Euro. This coin would rise and fall the way the Euro does, meaning that it would be stable in conjunction with the Euro.
This is ABSOLUTELY impossible because once you release it into the wild, you will have 0 control over it. The price will be a speculative vehicle like all other crypto currencies. Without a Government or Central Bank declaring and backing each individual coin you'll never maintain price parity, or even stability for that matter. It's simple economics. What part of this aren't you getting? This isn't over thinking, this is reality. You can declare it 1 Euro, but once it gets to an exchange outside of your control people will arbitrage the shit out of it dropping the price to what the MARKET says it's worth. If you can figure out a way to control the markets, you could get a job at any central bank or government the world over.
This gives the coin more stability than say a Bit Coin, because the Major Piece has a tangible equivalent while the Bit Coin is based solely on the amount of faith people put into.
No it doesn't, that's speculation on your part. Since the coin hasn't been released the market hasn't determined what the price of your coin is worth. Backing a crypto currency that is limited in supply and decentralized in nature with a fiat currency that is centrally controlled and inflating on a daily basis is not only haphazard, it's also short sighted in regards to currency stability. That's like mixing oil and water and calling the solution stable when the oil floats on top of the water.
The fact that it is based solely on faith, and not backed by either tangible assets or a legitimate government means that it is prone to severe fluctuations in value, which can be seen by its decrease in value when China said it would not accept it.
You know next to nothing about economics. The reason the price rose and fell in Bitcoin was because of (here take a note) LIQUIDITY. Liquidity in an emerging market is a major factor in price discovery. What you saw with the sharp drop was liquidity drying up and not enough funds to bid up the price further so it contracted to reflect the lack of liquidity in the market. It wasn't because of bitcoin has no backing that caused it, it was payment processors cutting the source of liquidity.
While no currency paper or electronic is stable in accordance to other currencies this coin is much more stable in value to real world hard money, by having its value tied to a tangible currency and not merely to faith. Also having this currency may potentially drive up the value of the Euro and in turn drive up the value of the Major Piece.
No it isn't, and no it won't.. Once you release it you'll notice it within a number of days that the price will be less than a euro. How the hell can it rise against the euro when 1.) no one will accept it outside of a alternative crypto currency exchange, and 2.) No demand for it outside of the exchanges? This is not over thinking this coin, this is the reality you face and will NEVER be able to guarantee parity with the Euro.
dE_logics you are correct. 1,000,000,000 pieces was just a general idea but will be replaced with the number of Euro in circulation.
So how is this different from the Euro then? Instead we'll have a decentralized infinitely inflating crypto currency? Gee where do I sign up to mine this?
