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In this April 7, 2014 file photo, Bitcoin logos are displayed at the Inside Bitcoins conference and trade show in New York. About $13 million in bitcoins will be auctioned in Sydney in June after Australian police confiscated the digital currency as proceeds of crime, an official said Tuesday, May 31, 2016. (AP Photo/Mark Lennihan, File)

A new digital currency called bilur is tying its value to hard oil assets


A new virtual currency, called "bilur," just released by financial services company R Fintech, is tying its value to hard oil assets -- a first in the growing industry of digital money. As of right now, one bilur is the rough equivalent of 6.5 barrels of brent crude oil, making it worth $356, Yahoo reported.

Texas-based oil company Hockley has set aside 1 million barrels of oil for the purpose of underpinning a bilur's value and is open to expanding that reserve if bilur becomes popular. 

Like bitcoin, bilur is a digital currency that is created by supercomputers around the world, then regulated and controlled by a user community. 

Such forms of currency generally appeal to people who are interested in currency that isn't controlled by a government or a centralized bank. 

Sometimes that can be a bad thing. Bitcoin actually lost most of its value in 2013. Bilur therefore targets users who like virtual currency but would prefer the currency be supported by a hard asset.

The announcement has been met with some skepticism on social media. 

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