Quote from: STT on August 04, 2014, 01:45:14 AM

Quote from: molecular on August 03, 2014, 07:41:33 AM

I hereby promise to give 1 oz of gold for 21,000,000 BTC or fractions of 1 oz of gold for respective fractions of Bitcoin to anyone who is willing to meet me in person. PM me if you want to redeem.

Here we go. Bitcoin is backed by gold.

There is a price already, 2.2293 btc per oz of gold

By trying to say you backed btc with gold, the scale is set to 21million per oz. So instead of increasing the credibility of bitcoin, it now becomes like sand on a beach.

In a free market bitcoin must have a price/risk comparable to other assets, arbitrage makes this true of almost anything. We cant just 'make it so' without resorting to the stupidity of communist party (or Nixon) price fixes and what that really means is less business is done. In your case you are probably proposing that only you can give this exchange, because you undercut all other exchanges with your cheap price then business is restricted I think would be the effect.
I think it would be so much more complicated and harder to do. The immediate effect of every exchange offering this swap to gold would drop btc prices massively I think. Exchange rates are not fixed without further problems

Peer to peer cryptography wont mix with gold, that value cannot be transmitted or codified

Quote from: NewLiberty on August 03, 2014, 04:23:19 PM

Yes! The volume is the key. Without it, a chart tells only half the story.

Volume of all major exchanges would be useful information to have. Mt gox led to an inaccurate perspective so it would be best to have some average or weighting to trade done, that would help improve prediction most likely

Bitcoin Specie project has been doing it, for real, with silver for quite a while now.
Gold will be added soonish.
http://coldhardca.sh
The higher the volume, the lower the premium and closer to the spot alloy price.