Bitcoin Forum

Would it help if we had a cryptocurrency that is pegged
to fiat? For instance 1 coin is 1 euro. Obviously the
advantage of this is that merchant don't have to
immediately convert their cryptocurrency to fiat, sucha
coin could also substitute usage of a bank for some people.

We premined a coin, with this goal, but unfortunately
nobody is making use of the coin, because people assume that
if you hold sucha coin and people fall for this idea, your super
rich. You can buy the coin in a webstore on the bases of 1 coin
is 1 euro. This is not the ideal set up, because we hold the coin,
but to really give it the value of the euro, you got to have the
euro's in return for the coin.

What we wanted to accomplish with our coin, was to make it
unnecessary to change to fiat. Please provide feedback

So you want to centralize the crypto system, call it a crypto when it is directly related to a fiat, and is a fiat?

And you're asking people to BUY this?

No. You have probably 80%+ of the coins, and a premine would have to be in the billions for something to even be feasible in that regard. So, yes, people won't touch it because you'll become super rich.

This isn't a crypto; it's a digital fiat.

Good idea, but I have a hard time seeing it become mainstream.

Well one that's not how crypto currencies work and two you can't really stop people from paying what they want for a coin. Remember though 1 bitcoin is always worth one bitcoin.

if your gonna peg an altcoin to the euro.. call it eurocoin and watch it divebomb when the fiat collapses.

Yakamoto thanks for your feedback, actually we are not getting superrich. If you would buy 1 coin for 1 euro, you could sell it for 1 euro. Our you could give back the 1 coin to me and get 1 euro.

Clegg thanks for your feedback, there are NO RULES to how things work, "the 1 coin 1 euro" is a agreement like everything about money. Second your right that you can't stop people from paying what they want for a coin. But it's about having a crypto equivalent of the euro, just so that we don't need to use banks to do business with eachother.

This wouldn't work. I can't see how you could force people into pegging it to a certain currency.

franky1 I know that it's not smart to peg a cryptocurrency to a fiat, because your basically giving the coin the lifespan of the fiat (general 25 years). The thing is the mayority of the people out there are using fiat and they won't come over anytime soon. But if we have a crypto tied to fiat

- You got the stable price
- A coin that people don't even have to change to fiat
- People might even try it, because they suffer no lost, 1 coin is 1 euro

The entire world doesn't need to come over soon, which is good for us, but I think it'll be a slow and gradual process. Bitcoin will get easier to use and the benefits will reveal themselves to the mainstream over time.

Beyonce thanks for your feedback, this is not forcing people. It's a agreement that if I give you 1 coin, you give me 1 euro. Likewise if you give the coin to somebody else they give you 1 euro for it because thats our "Agreement".

Imagine what this coin could do on a exchange, exchanges would not need to work with banks anymore. It could also fight volatility, if your favorite cryptocurrency's price is going down, you could change it to this cryptofiatcoin to stop loosing money. You could start buying again when the price is rising.

We like to call ourselves the freemarket, but if we don't think outside the box, we'll stay boxed in. The only way to get around our fiat need, is by creating our own cryptofiatcoin. I'm not downplaying Bitcoin here, but as long as we need fiat in our universe, we might as well have a cryptofiatcoin.

Professor Plums

I know that the whole world won't come on over right away.

The argument of the old world is always that Bitcoin is so volatile
what if people could just try crypto without any risk.
Must people are just happy using Bitcoin only, but what if besides
that you had the option of a cryptofiatcoin and got the stability and need no bank.

If you peg a crypto to a fiat, the crypto inherits all the deficiencies of the fiat monetary system. It is basically a "paypal coin".

PolarPoint thanks for your feedback

I have to disagree with you on this one, this is absolutely not a "paypal coin". It's just a coin like Bitcoin decentralized and you can send as much coin as you want.

The idea of this coin might seem like an anomaly, but if we all go in the same direction (Create coins and put them on exchanges), WE ARE NOT EXPERIMENTING, WE ARE NOT DISCOVERING NEW THINGS.
I admit that this not what people are use of cryptocurrency

But to be honest, this is how it has been going on for years with community currency

Think about the advantage
- No banks
- No volatility
- No exchange (we're just selling this in a webshop)

i like the idea

but it requires me trusting the creators to actually buy back the coins at 1$ each  and alway have the funds to do so.

i could make that leap of faith, if there was some big name behind it, or something to that effect.

EDIT: if you're thinking of simply selling the coins for 1$ each and then hoping they hold that value without you willing to buy them back, its never going to work, you need someone willing to buy them all back at anytime for 1$ each, since you sold them for 1$ each you should be able to do that....

I think it's possible to abandon sovereign (ie FIAT) currencies altogether once adequate crypto-credit mechanisms are developed.  Most modern currencies are built on debt arrangements. 

-bm


ps. Ron Paul people : go!

adamstgBit

Every coin we sell we can buy back.
 Ideally every Bitcoiner would get a few coins and we could all have the agreement, that the coin is traded for  1 euro for 1 coin

The problem I see is that you can't guarantee that people will honor this agreement. You may start at first: 1 Euro = 1 Coin, but as time passes, people will start selling them cheaper of more expensive, because that's how the free market works.

On the other hand, if you actually try to enforce the value, then you no longer hold the original idea of Bitcoin, and most people won't continue using it.

that would be a cryptographic banknote.  http://www.investopedia.com/terms/b/banknote.asp

not necessarily a bad idea and given the problems were having with reliability in our financial infrastructure, there may be a significant market for such things.

-bm

Clean PoW distribution which no currency has achieved over a long period.

Least of all Bitcoin.

Then

Best option if you want to try this is "rebase" the supply to fix it to something.

R2D221 thanks for your feedback


It's true that I can't guarantee that other people will honor this agreement. But one thing I can guarantee, that is that the 1 Euro = 1 Coin will be honored at our webstore. Basically if you buy 1 Euro = 1 Coin at our store, we have your 1 euro and you have 1 coin. If you sell your coin for cheaper or more expensive, your free to do so. The person you sell this coin to will have a lost or gain. If you sell the coin for 2 euro and they buy it, they loose 1 euro and can't come and complain to us, because EVERYBODY IS ALWAYS RESPONSIBLE FOR WHAT THEY DO. So if you buy a coin without doing the research, it's your own fault. If you sell the coin that you bought for 1 Euro for 0,80 Euro (it's basically your lost and I don't see many people doing this, more the opposite) the person you sold it to has a 0,20 Euro gain if they sell it in our webstore.

I disagree that I have to hold on to the original idea of Bitcoin (First of all I love Bitcoins it's the first time in a long while that I really saw something OUTOFTHEBOX), it's this idea that limit people to broaden their vision. Just because Satoshi design Bitcoin, doesn't mean that Bitcoins offspring need to have it's characteristics. If you look at things in nature they constantly change and evolve. If you think there are rules you're wrong (rules are limits and you should always break away from that).

bluemeanie1 thanks for your feedback
I agree that there is a market for sucha product, because if people could just use this instead of Euro's on a bankaccount, THEY COULD KEEP THEIR CURRENCY SAFE (bank bailout). In order for this to work everbody just needs to "honor the agreement".

digitalindustry thanks for your feedback

Can you vote if you like this idea

You / your store would need a huge bankroll to try to get this idea to float.  Or are you planning on pre-mining 100% of the coins, and selling them at 1 Euro to others, where they in turn could use them for 1 Euro at your store?

The problem, if you do it the regular PoW way, is say the rewards are even super low (IE 1 coin per block).  And say you have approx 300 blocks per day (About a 5 minute block time).  If everyone was mining the coins, and just selling them to your store, you would have to have a bankroll to cough up 300 Euros a day, and get nothing in return aside from some coins that people may/may not buy back from you.  With a huge enough wallet, I am sure you could keep it going until they caught on, but most small businesses would fail before this ever took off.  And even if it did take off, you would personally lose alot of money, as the only way you could break even would be if you sold every single coin back, and if that was somehow possible, you would have only broke even for all this work/risk. 

This isn't the case if the coin is a 100% premine, but almost no one buys into heavily pre-mined coins.

It's a good idea, and will happen, or maybe it has happened.

Pegging a currency to another currency is normal. The country I live in has pegged its currency to the Euro. Before that it was to DMark. You have wriggle room, The currency that is pegged does not follow exchange rates religiously. There is always a gap of a few percent that the pegged currency can choose to exchange at.

Vivisector999

All the coins are premined
The only can be bought @ our store, you can sell them elsewhere, but we ask you to honor the agreement "1 coin = 1 euro". The coin got a lot of advantages

- Stable price
- Fast transaction
- 0,01 transactioncost

But there is already a crypto that is pegged to fiat!
Introducing..... Major Piece coin.


Sadly, the coin died a few weeks after launch due to natural causes.
Our thoughts and prayers go out to its family and friends.

Funny I never heard of the coin.

To bad that they stopped, because there is always a market for people
who want to get away from high fees, volatile prices and banks.