Bitcoin Forum

In my opinion, I think the only way Bitcoin can be back by GOLD is when Gold stores allow customers to buy their gold using Bitcoin.
http://finance.yahoo.com/blogs/breakout/schiff--buy-gold-here--and-trade-me-bitcoin-for-it-155612329.html

Do you think it's a good idea to let customers buy Gold using Bitcoin?
The Gold must ship to the customers home.


Why or Why not?

gold can't pay my amazon invoice ...  ::)

Bitcoin doesn't need to be backed by gold because bitcoins are limited in supply.  The reason pieces of paper used to be backed with gold is because paper is not limited in supply.

I don't want or need my bitcoins backed by gold.
To even suggest such a thing, is missing the point, IMO.

bitcoin doesn't need to be backed by gold. Bitcoin is backed by the technology

This new form of currency doesn't fit into the old currency paradigms. To try to force it into such paradigms is a waste.

^ This.

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but you can buy a gold stabs for bitcoins already ....

http://www.bitgild.com/

I dunno are those sites legit - I never bought any gold :) so .. I am not an expert but I think it doesn't really matter ... and you will be able to buy everything for bitcoin very soon :)

Regards.

edited: suspicious link removed :)

There are a lot of scams out there so buyer beware.

The more ways you can spend your bitcoin the most people will wish to (and actually) use bitcoin.

Why would one limited-supply rare commodity need to be backed by another? Senseless. Both gold and Bitcoin are and will always be valuable.

Only worthless fiat scrip needs to be "backed" by something with actual value.

currently bitcoin is already backed by gold

gold can be purchased with bitcoin from amagimetals, coinabul, peterschiff's euro pacific  metals, agora, etc..

People have been buying gold and other precious metals for bitcoin for years on this very forum.

I don't understand why being able to purchase something with bitcoin equates to bitcoin being 'backed' by that item. Care to elaborate?

Simply buying gold with bitcoin is not backing up bitcoin with gold. Just like buying graphic card with bitcoin is not backing up bitcoin with...electronics or whatnot. Backin up Bitcoin with gold would be when every Bitcoin user would have to have certin amount of gold proportionaly large as amount of his Bitcoin which would make bitcoin "bill" for gold which i sooo not what Bitcoin is or should be.
Backing bitcoin with gould would eliminate any sort of wealth redisribution, mining and...well...it would not be bitcoin anymore.

This makes no sense at all. When you "buy" gold for bitcoins, you're not backing it, but rather exchanging one for the other. Both are limited in supply, so there is no need to back one with the other.

I think the title and the OP are saying two conflicting arguments.

gold is a fantastic value store (MUCH better than Bitcoin) but no good at all as a currency ...

Bitcoin is a terrible value store (too volatile) but a fantastic currency.

I keep most of my assets in gold (80%) and the rest in BTC .. which I am prepared to lose, if it goes down.

bitcoin is way more backed than gold because of the amount of banking infrastructure it replaces alone. Gold has no such use case, until you can make gold invisible, easily divisible without a system of weights and teleport it.

In any event Gold is completely manipulated/at the whim of central govs because they can confiscate it illegal any time an their is little you can do. No so BTC.

I just don't know how Goldbugs can't see this?

Why customer needs gold in his home?
in real life you don't need the real thing.
you just need his VALUE.

unless you know how to work with gold.. you cant do anything with it. exactly like the beginning of Bitcoin

Gold is probably the best investment if you think inflation will be high over the period you plan on holding it.

Sure, the gold price IS manipulated, and central banks have been (desperately) trying to keep gold below $1000 for decades.  Eventually the market demand overwhelmed the Fed's chicanery and gold shot up.  Even now, it is extremely deflated at $1275.

But look, it is not possible for the central banks to completely manipulate the gold price.  It IS possible for them to gang up on Bitcoin, which has MUCH less liquidity and market share than gold.  Central banks could begin buying up all the Bitcoin they can get their hands on, then dump it on the open market as some appropriate time to completely destroy the price.

Bitcoin is HIGHLY vulnerable to price manipulations.  Hell, if the Chinese even SNEEZE we see the price drop 50%!

I love Bitcoin, but it will NEVER replace gold as a value store, nor should it.  Bitcoin is a currency and should be SPENT not HOARDED.

Gold is an asset and should be HOARDED.

I wish demurrage was built into Bitcoin!

I think gold is a good long-term investment. Bitcoin can be both.

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I don't think Bitcoin needs to be backed by gold, but I'm not saying to disallow people from buying gold with Bitcoins.

Gold is a slow method of payment when there are great distances between two parties. Gold gets owned by bitcoin in this category alone.

What you are describing is not being 'backed' by gold. Go back and learn your stuff. Backed means you have enough gold in value to equate to the amount of the currency your printing (in this case Bitcoins). Most countries have stopped being entirely backed by gold instead opting for other assets and just printing money because thy can. What you are proposing is the ability to buy gold with BTC - I don't understand why you'd want more gold instead of BTC but it BTC certainly doesn't need any of this gold backing.

but the manipulation is of a fundamentally different type.

Eg with gold the amount of gold you actually have rights to by the trading instruments can never really be established, where is that gold, is it pure?

With BTC, of itself the quantity and type is always publicly provable. BTC is not actually manipulable itself, rather countries can only try to manipulate the value of their currency against BTC, by making it hard to move in and out of positions. They cannot regulate BTC itself, but they can Gold itself. Eg seize or make transfer illegal, fractional reserve etc.

Gold is not supposed to pay your amazon invoice either. When u r supposed to pay, convert Gold to FIAT for the time being and convert it to Bitcoin when Amazon starts accepting it.

It's silly trying to 'back' it with anything. It doesnt need it. This cryptos that have tried to do this already will just fail.

BTC do not need a backup through gold.BTc are limited and gold is not.

Something backing btc would mean that there is someone or some group who will always exchange a fix amount of something(like gold) for a fixed amount of btc.

For example: 1 BTC = -.5 oz of gold

Being able to buy gold does not in anyway back bitcoin.

And no one would ever think about backing bitcoin. They have nothing to gain.

How isn't gold limited? There's a finite source of it unless we find more on another planet or something.

https://agoracommodities.com/?s=&post_type=product

Great company. Comparatively tight buy/sell spread. I'm not a big believer in gold as it appears very manipulated. But other precious metals can be purchased with bitcoin here as well.

Sounds like Freicoin might be the coin for you: http://freico.in

I can't relation between gold and BTC, BTC just need tech and math to be packed with as it's limited in supply.

and your point is ... ?
there are 99999 altcoin that are also limited, and 10 more each day is born; does that mean they are worth anything ? NOT

bitcoin is being held in price only by speculators, no real development happening.