Post
Topic
Board Economics
Re: Could BitCoin ever be backed by Gold?
by
amwt
on 14/02/2011, 18:18:09 UTC
When a currency pool is too small to have any liquidity to determine effectively its value, I think currency pegging (to a major currency or a basket of currencies) is a more applicable modern concept than "backing" by any arbitrary precocious precious commodity.
http://en.wikipedia.org/wiki/Fixed_exchange_rate