Post
Topic
Board Economics
Re: Why don't we just create backing for Bitcoin?
by
fimp
on 20/06/2012, 21:33:12 UTC
Similarly, gold's "backing" stems from its scarcity, and other physical properties, that make it suitable to act as a money.
That's true for most of the value of gold, but a small amount of the value of gold stems from its use in industry and jewelry. This "instrinsic" value is what economists and gold bugs point to as the reason gold can be trusted. Bitcoin can emulate this by creating such an organization as proposed.