Quote from: AndyR on September 22, 2011, 11:02:19 PM

To back Bitcoin with gold is the same as backing silver with gold - it makes no sense when one is as good a store of value as the other. It is unnecessary.

It is necessary because people may not see the same value in bitcoin, especially if one wants it as a store of value and the other wants it for exchange. Now, people are being very limited in implying it has to be backed up by gold....but it should be backed up by what you want it to be backed up by(and can pay for).

Another currency is not needed....its ready to fly as it is backed up by anything someone can prove its backed up by. I can take 5 bitcoins and say they are backed by gold...and I can take the next five and back them up by economic cycle part#X.

Now of course you couldnt persuade anyone who is wearing government rose colored glasses that its not illegal....so to put it to the test, it would be in a more savy country thats not hamstrung and uptight like the USA. Probably a third world country. Say some poor farmers who need help. Send them bitcoins backed up by gold...who wouldnt accept that? OK, but you have to stop them from cashing out so the selling point is to exchange those bitcoins backed by gold for bitcoins backed by what the next person wants(except for national currency).