Quote from: deisik on December 17, 2013, 06:55:24 AM

Quote from: porc on December 17, 2013, 03:03:49 AM

Quote from: pand70 on December 17, 2013, 03:00:40 AM

Quote from: porc on December 16, 2013, 03:41:10 PM

Quote from: pand70 on December 16, 2013, 09:40:42 AM

Obviously you mean guarantee by a central authority. That's not going to happen ever because bitcoin don't wants that to happen.
You see bitcoin with fiat currency standards thats why you can't understand basic things.

No. Thats one form of backing (dollar).

Gold/Silver have backing (inherent).

Bitcoin has NO backing.

Bitcoin has that other backing that you talk about. It's the massive value of it's network and the thousands of people's that are strengthen that network.

Thats not backing.

Backing for you is something that you redeem dollars (or any other currency) for? I remember you saying that gold doesn't need backing since it has real value by itself (nice to look at and so forth). Could we then proceed to the assumption that its inherent properties is what gives it value (nice look, indestructibility, heaviness, etc)?

Partly yes, that is the intrinsic value, same as value for direct use. Most of the value of gold is the exchange value, value that comes from people who want to hold it for shorter or longer time. When you want to use something as money, you need to hold some sometimes. It is not the instant moving of the stuff from one person to another that gives it value, but the fact that you sometimes need to hold it. It is also called reservation demand.

Gold has some direct use value, but mostly exchange value. Bitcoin has only exchange value, which, for money, is ideal.