Post
Topic
Board Economics
Re: How we could "back" bitcoins with something of value
by
Richard Andreassen
on 20/06/2011, 22:32:25 UTC
@Richard Andreassen

The problem with modifying supply based on an exchange rate is:
Which exchange rate to use? For example, when Bitcoin was created, there were no exchanges around.
It would introduce a lot of uncertainty in the design.

People could just use whatever exchange rate they wanted by putting a url to a service that provided an exchange rate into their client. Then the network would have to agree by majority rule or something.

I think there are bigger challenges to my suggestion than this.