Firstly, I wish to thank each and every person who's replied to date, I digesting your words in spite of humorous and, perhaps, incorrect responses on my part.
I'm still trying to get my head wrapped around the why pegging one PENJ to one US dollar is an issue given light that:
The US dollar fluctuates on a continuous basis, albeit small movements, relatively speaking.
The first pricing of bitcoins was pegged to the average electricity usage cost (calculated worldwide).
The current price per bitcoin is currently pegged to $796.08.
Yesterday's price per bitcoin was pegged to $930.28 (quasi-contrived, but you get the gist).
I think you're using the word "pegged" incorrectly. Pegged means that there's a mechanism keeping it that way.
To peg a value of an asset to the value of another one, there needs to be a liquid way to exchange them 1-1. That's the only way.
There are also some monetary misunderstandings. Bitcoin's price is NOT pegged to the cost of electricity. It is not the cost of mining that makes the bitcoin price. It is the bitcoin price that makes the cost of mining (also called the difficulty).
It is not because you have produced a bitcoin with mining equipment that has cost you $5000,- that you will find an imbecile buying it at that price. It is because you find an imbecile that buys it at that price, that you are willing to spend up to $5000,- to compete and mine coins.
Second, the high volatility of bitcoin and other crypto, as compared to the volatility of fiat, mainly comes from the fundamentals. A big fiat currency's price is determined mainly by Fisher's formula, that is, by the fact that it is used to buy goods and services (paying salaries, buying groceries). The "stickyness of prices" makes that this activity and the demand that comes from it, has large inertia. Most salaries are more or less constant amounts from one month to the other. The grocery prices do not fluctuate much from one day to another. So the USAGE of the fiat currency, which determines its price through Fisher's formula, is more or less constant. This fundamental is what determines the fiat currency's price (at least, if the central bank doesn't change its offer drastically).
Crypto is mainly pure speculation, and has only a very small "usage" market cap. As such, there's in fact no fundamental that keeps its price constant. It is whatever people think it will be. That's highly volatile.
