Post
Topic
Board Economics
What do you think about this "Bitcoin-backed money" idea?
by
dsyahputera
on 14/05/2016, 12:06:41 UTC
First of all, what is representative money:
A claim on a commodity, for example gold certificates or silver certificates. In this sense it may be called "commodity-backed money".

Then, what is gold certificate:
A gold certificate in general is a certificate of ownership that gold owners hold instead of storing the actual gold. It has both a historic meaning as a U.S. paper currency (1863–1933) and a current meaning as a way to invest in gold.

I just wondering if Bitcoin can also have representative form like the gold certificate. This representative form will be a paper that contain sealed private key. This paper will have face value that represent the Bitcoin amount it has. We could call this "Bitcoin-backed money". Futhermore we can use this Bitcoin-backed money just like we use paper money (banknotes) everyday.

How do you think about this idea?