Interesting. So, are you saying that Bitgold has lost its value because of its credibility? If there was a trustworthy company that carried a crypto-currency backed by gold, would you find it more stable than Bitcoin?

I guess I'm trying to understand the value behind a crypto-currency backed by nothing compared to a crypto-currency backed by a commodity.

A lot of economic instability has lead people to believe that hoarding cash is a smart way to protect themselves financially. Earlier this year a bunch of headlines touted that "Cash is King". How can this be true when the government is working towards a cashless society? According to an article written earlier this year, government officials are actively trying to ban cash. Apparently they're trying to stop depositors from being able to withdraw any cash so that everything is done digitally. For the most part, this plan has been in motion for a long time. I think this is why a lot of people have started preferring digital currency, such as Bitcoin, to fiat currency.

However, what I find interesting about this article is that the author suggests having a crypto-currency backed by gold "to solve some of the shortcomings and vulnerabilities of Bitcoin." Would this alternative crypto-currency be more stable than Bitcoin? Or would Bitcoin be more stable since it isn't backed by anything?