The US dollar is pegged to oil
Okay I admit it's the other way around. Oil is pegged to the dollar, what difference does it make?
Better correct this statement too , if oil would have been pegged to the dollar there would have been no fluctuation in oil price.
Probably you have no idea what pegged means.
And as the previous link posted by somebody here pegging another commodity to a virtual currency which acts too as a commodity right now it's almost impossible.
OIL IS TRADED IN US DOLLARS. ONLY. THAT'S IT. JUST US DOLLARS, ONLY, NOTHING ELSE. DOES THAT ANSWER YOUR QUESTION YOU NUB FOR BRAINS?
OIL IS PEGGED TO THE US DOLLAR. ONLY, NOTHING ELSE, IT'S ONLY TRADED IN USD.
OKAY? Moron?
Ok.. moron..
To peg something means to have a fix value for 1 tone of goods or for 1 barrel or for 1 Mexican dollar
To trade something means to exchange 1 of this good vs x or this currency or goods depending on the market price.
Oil was never
pegged to the us dollar it was
traded in us dollars , big difference.
The dollar fluctuates in value just like crypto currency. There is no difference. Once the unit was set and traded exclusively it became pegged. URO is the same damn way. Yes you get 1 tonne of urea for 1 URO, but how much BTC does a URO cost? Exactly. It fluctuates just like the USD
God damn people are fucking stupid.
I can't really believe you are a senior member and still a newbie in economics.
First thing : you claim that traded and pegged are the same things.
Seems like you don\t want to listen in this case so i'm not going to argue further , use wikipedia for this.
Second.
1 uro as meant to be traded 1 tone of urea just as you say oil is traded for us dollars.
the bad thing is that the price of oil , since is TRADED and not pegged varies:
Now , how this association good in theory has a flaw which might prove a headache for uro traders?
The thing called supply and demand.
Basically there could be a high demand for urea so urea consumption might double and thus you will either have to increase the number of coins or split the value.
If you increase the number of coins and then demands take a dump in order to maintain the price you will need to either (have the uro foundation buy all the available urea in order to maintain the price and act as a central bank) or destroy coins (impossible).
If you go the other way and say 1 uro coin is valued at 1.5 tons of urea the whole idea of pegging is thorn apart.
ps.
stop making enemies and calling people names just because they don't agree with you.
On this board when defenders and bag holders of an alt coin start shouting like it's 90% a swan song
You have two fluctuating units in an oil trade. The dollar and oil. both are subject to market forces.
The same thing applies to Uro with this exception Uro fluctuates, BTC that uro is traded against fluctuates and Urea itself fluctuates. You can peg a unit of Urea against a unit of URO because it can fluctuate against BTC.
How much BTC does it cost to buy one URO? The price will never be the same on a day to day basis. It might take .2 btc, or .5 BTC, the only difference is the decimal point. USD works the same way except is has no other way to express another value except one dollar without inflating or deflating. There is no difference between the USD and bitcoin. USD fluctuates as much as bitcoin does, you just don't see it in every day life.
http://www.marketwatch.com/investing/index/dxy
