If this will happen or not is too early to tell, but I don't think it will hurt trying it out as long as the currency remains open-source and public as most blockchain technologies.
If it is open-source and blockchain, then it would not need backing in oil, gold, or anything else. If it has backing in oil, gold, or anything else, then it's not the blockchain, but qualifies as the worst kind of fraud — centralized electronic “money”. As such, it will end like any other centralized paper “money” we have already seen. Only much faster, because it will be targeted not only by hackers, but also foreign intelligence services.
The idea is doomed from the start.
Crypto being backed by oil, gold and diamonds does make it centralized fraud. At very least it will be just like back then when paper money was backed by gold. Therefore you’re incorrect not about the outcome of the project but about its cause.
You didn't read it carefully @fingersik. You said exactly the same thing as I did, just a bit differently formulated. Thanks for the confirmation.
No not really. Its the matter of "how the precious materials will be stored" to decide whether it will be centralized, not the connection to it itself. Also when money was backed by the gold it wasnt a fraud, people just saw (and some still see) value in precicous materials.