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Title: Backing bitcoin with gold through a trust Post by: coin8091 on November 19, 2013, 03:30:13 PM I am not an economics geek, so take it easy if this idea is stupid :)
I see bitcoin as mere bubble because of the following reasons: There is noway to determine the lower boundary of BTC when it start to tumble. There is no way to stop other dozen *coins to leech value from BTC creating the digital equivalent of money printing. To solve the above two problems: why not we try to work out a Bitcoin trust, which operates completely transparently based on gold donations. BTC trust should promise, gold redemption to BTC based on available gold reserve to bitcoins available. may be we can tweak bitcoin protocol to transfer a small amount of fee (voluntarily) to the BTC trust. The small fee could be turned back into gold reserve based on previous redemption rate. This way once BTC trust after bootstrapped with donated gold, it can grow its gold reserve in a cumulative fashion. BTC trust should not turn into another central bank, so it has only one function. Accept gold donation and promise gold redemption to BTC based on available gold reserves transparently.period. If people donate for companies based on opensource software products, certainly people will be glad to donate for this opensource gold reserve... so... did I solve the BTC bubble problem? Title: Re: Backing bitcoin with gold through a trust Post by: pinnpe on November 19, 2013, 03:47:41 PM Unfortunately you didn't
- Gold is being manipulated - Not every 1 got gold - Don't they put tungsten in gold? https://www.youtube.com/watch?v=EeyHF1N1jNw - Promise/Trust???? Now if you can't even trust your bank to keep their promise.... I suggested a fixed price, but many seem to think that I'm crazy Title: Re: Backing bitcoin with gold through a trust Post by: PenAndPaper on November 19, 2013, 03:54:40 PM I see bitcoin as mere bubble because of the following reasons: The above two are not problems so there is nothing to solve.There is noway to determine the lower boundary of BTC when it start to tumble. There is no way to stop other dozen *coins to leech value from BTC creating the digital equivalent of money printing. To solve the above two problems: Oh and gold is so yesterday. Even on backing up mainstream currencies. :-X Title: Re: Backing bitcoin with gold through a trust Post by: BldSwtTrs on November 19, 2013, 03:59:03 PM so... Yes.did I solve the BTC bubble problem? Now please do work your brillant brain on the following problems : - The hard problem of consciouness - Riemann conjecture - The unification of quantum physics and relativity Title: Re: Backing bitcoin with gold through a trust Post by: coin8091 on November 19, 2013, 04:10:10 PM so... Yes.did I solve the BTC bubble problem? Now please do work your brillant brain on the following problems : - The hard problem of consciouness - Riemann conjecture - The unification of quantum physics and relativity thanks for the pointer, one problem for breakfast another for lunch and another for dinner. Title: Re: Backing bitcoin with gold through a trust Post by: AndrewWilliams on November 19, 2013, 04:22:36 PM I am not an economics geek, so take it easy if this idea is stupid :) I see bitcoin as mere bubble because of the following reasons: There is noway to determine the lower boundary of BTC when it start to tumble. There is no way to stop other dozen *coins to leech value from BTC creating the digital equivalent of money printing. To solve the above two problems: why not we try to work out a Bitcoin trust, which operates completely transparently based on gold donations. BTC trust should promise, gold redemption to BTC based on available gold reserve to bitcoins available. may be we can tweak bitcoin protocol to transfer a small amount of fee (voluntarily) to the BTC trust. The small fee could be turned back into gold reserve based on previous redemption rate. This way once BTC trust after bootstrapped with donated gold, it can grow its gold reserve in a cumulative fashion. BTC trust should not turn into another central bank, so it has only one function. Accept gold donation and promise gold redemption to BTC based on available gold reserves transparently.period. If people donate for companies based on opensource software products, certainly people will be glad to donate for this opensource gold reserve... so... did I solve the BTC bubble problem? The only way this would work is if any Bitcoin holder could redeem his Bitcoin for the reserve gold. Not going to happen unless you get someone, or a government with immense resources behind this idea. Title: Re: Backing bitcoin with gold through a trust Post by: bitcoinBull on November 19, 2013, 04:28:16 PM If you like gold, then hold gold. I like bitcoin because it is NOT gold. This quote from Peter Thiel (founder of paypal) is insightful: "It is worth thinking about money as the bubble that never ends. There is this sort of potential that bitcoin could become this new phenomenon,"
And even with that, I'm not still not 100% convinced that the bubble couldn't burst at some point (even gold and the USD fluctuate). I've panic sold before and I'll panic sell again. Economic bubbles are just inherent to human society, going back hundreds if not thousands of years. Might as well work on a solution to stopping war and all political conflict. You'd have a better chance solving a scientific problem, like curing cancer. |