Damp proof chipboard?

Have you considered T&G wooden floorboards, sanded and coated with Danish oil, say?
 
I think I can safely say I will be going for wooden floorboards(plywood?).

Based on what I have learned in past few weeks, I can't understand why chipboard is used as floor boards.

I haven't heard of this danish oil treatment, can you tell me more about this and maybe provide a link?
 

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