Topic: [ANN][URO] A Real Long Term Currency: 1 Uro = 1 Metric Tonne Urea Fertilizer - page 118. (Read 247330 times)

Which is why URO could radically change the crypto landscape. Imagine big boy Bitcoin traders hedging in URO in case Bitcoin falls, and when BTC rises they sell their URO for Bitcoin. This is how you build a functioning crypto economy.

It also works the other way around, you can bet the price will fall. Like a short sale on stocks.

Children I'm only going to write this once.

How commodity markets exchange goods:

There are 3 players in commodity markets.

The producers, those who produce a commodity like frozen concentrated orange juice, soy beans, pork bellies, Urea.

The Processors, those who purchase the raw commodity and turn it into something useful like bacon. Who doesn't like bacon. Mmm, bacon.

The Traders, those are the ones who bear the risk in the market. And their reward is a profit if successful.

Obviously people understand the producers and the processors, but why do we need traders? The reason we need traders is to provide liquidity. Say farmer A wants to sell his crop and make sure he doesn't lose money in the case the price of his goods goes down. He sells a commodity contract that states he'll SELL his crop for a certain price and it's guaranteed he'll get that price. If the price goes up or down, he's covered. Now who does he sell his contract to? Generally it's sold to the producers who want to lock in a lower price and guarantee operating capital isn't compromised. The producers are afraid the price will go up, so they sell a contract stating they want to BUY some goods at a given price. If the price rises or falls, they still buy their goods at the contracted price.

Now what's the roll of the commodity speculators, the traders on the floor who make their living on the price changes? They bear risk. If they succeed at bearing risk, they are rewarded and this is how it works. A trader will go in and bet the price on a good will go up, so he'll buy say a march pork bellies contract at a given price from farmer A at a given price hoping to turn around and sell it on a price rise to producer 12 and make a profit. The farmer and producer DON'T CARE who buys or sell them their contract, they just simply want to lock in a price. The trader provides liquidity and risk to move the goods. They are simply the go between to provide fast cash for the producer and a quick contract for the processor. If they are successful they get rewarded, if not, well that's why the chicago board of trade and the new york mercantile exchange has a high turnover rate. It's a very stressful way to make a living.

Now explain to me why URO is a bad idea, or a scam.

Yeah, the same date that people stop disputing that the US landed on the moon.

So is there a specific date/event at which point all the uncertainty will be addressed and the debate'll be over?

The thing is anyone who has read any serious financial publications, i.e Wallstreet Journal, Forbes, etc., not the rantings of a few teenagers on bitcointalk, know that Blockchain 2.0 technology and the application of it towards new methods of information and wealth transfer is the next direction for crypto.

I can't think of a "better" way to start the process of backing a commodity on a crypto coin, if GES had 100% premined and IPO'ed it at 1:1 Urea prices, no one would have bought it, end of story. If you are skeptical of URO working then you should be skeptical of ALL future commodity coins. It's no skin on the back of these companies for a few people to make a fortune being early adopters, that goes for any company or technology. If it does turn out legit though you are running out of time to hope to make any money unless you are a millionaire whale daytrader.

Indeed, it is But then most of the crypto community would not have believed in bitcoin 3 years ago either. They only believe when it has become mainstream.

Don't know what you mean??? URO is backed by Urea. Bitcoin is backed by FUD.

About as dumb as people giving you actual products for Bitcoin which is nothing but 0's and 1's?

It's funny how the crypto community is now becoming as skeptical of new market ideas and tech as the mainstream world is of Bitcoin.

This is possibly the dumbest thread I have ever read in my life.  I literally can't even.  People with valuable commodities are not going to give that value to you in exchange for made up internet currency just because you would like them to. 

I mean yikes.  I have no idea as to the authenticity of various "proof of backing" in this thread but assume it is low or meaningless.  I feel like we are watching auroracoin v2.  You guys are nuts.

What would happen if a processor puts in a BUY order for 12,500 URO for .3 BTC each. Guess where the price goes. How fast will people dump? Doesn't matter, the producer wants the URO to purchase Urea. If they get it at a discount, that's better for them.

All of a sudden the market becomes viable.

Blahahahahhaahh!!! 

Just aside from that a lot depends on what will be the URO price by the time they get their first minimum order size in. And even then by just holding the URO they received they can convert it to whatever other currency they want according to URO market price. So basically there would not need to be any loss for the NIERs

Your response seems to suggest you haven't read this thread or any of the sites the dev has linked to. The following is on the uro foundation site:

Policies in Philanthropy: For the NIERs – Uro is not a sale, Uro is not something that fits the metrics of what that the Urea trading firms will pay for as an expense or an investment. for the NIERs – the best category for Uro to fit in is as part of the philanthropic and R&D activities these companies get involved in. Over the years – the NIERs have learned that handing out cash usually ends up with corrupt officials and middlemen absorbing the majority of the donations or funding – so the NIERs now have a policy: No cash handouts. This policy is the result of tens if not hundreds of millions of dollars in hard lessons learned from past charitable and R&D activities. The NIERs are fine with providing millions of tonnes of Urea knowing that it will go towards planting something that will help feed people in need, but not okay with providing funds so that Uro can be temporarily and artificially inflated in value on a currency exchange just so that a few early adopters can cash out.

So all your arguments mean nothing. The Urea set aside for this project go under the charitable and R&D heading. If this experiment works 1 Uro = price of 1 MT Urea and there is no losing of millions of dollars leading to company bankruptcy.

lol i tought its a trash at the beginning and now bittrex is almost offline :d

Actually I never thought about that, that would be our semi-definitive proof, watching the blockchain!

I'm waiting to see 12,500URO change wallets and everyone and their mother panic buying lol.


-Pickle

I like this, we need more buyers like you. I figure people who really know this is legit from first hand experience will buy first and then share. This is the reason why I will not play with the swings in this market. 12500 can suddenly be purchased by people who really are using it.

The 10,000 Bitcorn pizza was also a risk. And it turned out it was a scam.

commodity producers have huge   margins   , so I guess if you believe that it's plausible for them to sell Urea at a huge loss in the hopes of recouping that money at a later date.
But even under that scenario once they sell the Uro on the exchange for a fair market value they owe more Urea to the buyer of the Uro so they don't recoup the losses.
So no matter what they are losing millions of dollars since the minimum order is 12,500 tons and there is no way to recoup that money if they accept Uro and don't currently own Uro to profit from the price appreciation..in which case it's more likely to be a pump and dump anyway.