Re: Will bitcoin be the next Tulip Mania?

The exchange rate needs backing value to be real.

Just out of curiosity.

Can a currency be backed mostly or completely by another currency ? Has anything like that ever happened in history ?

I don't know, I'm seriously asking a question - this is not sarcasm or anything.

I dont understand fully, but I've read that several other countries back their currency with the US dollar.

So it is possible for a currency to be strong without the need for a lot of goods to be traded with it ?

I suppose, if the currency is backed by another currency that does have a lot of goods traded with it.