Are people really this dumb to not realize the "killer app" of Bitcoin?

[pandit]

Why some billionaire doesn't buy a ton of bitcoin and say he will redeem any bitcoin with X amount of gold/whatever else is beyond me. Branson should do it with travel miles or something. I mean someone with a huge net worth could buy a bunch of bitcoin and immediately double their investment.

for that they expect a trusted exchange to be working.

[daviducsb]

There are several exchanges that work just fine, and could be convinced to submit to outside audits if a new entity were to provide greater liquidity. I don't see this as an issue.

[r0ach]

One of the main things I was alluding to in the post, is that once enough, or even one extremely large trusted exchange becomes available, such as Coinbase, that deals with BTC/Gold pairing and easy hedging between fiat, BTC, and gold, it's going to make BTC gold backed by proxy.  That relationship fixes the majority of both gold and Bitcoin's weaknesses.  Gold is also one of the best ways to get old money into the game for people who don't understand it and don't trust it.

[jonald_fyookball]

with BTC/Gold pairing and easy hedging between fiat, BTC, and gold, it's going to make BTC gold backed by proxy.  

Not really, no.

That's like saying US dollar is backed by gold because you can trade USD/XAU through a forex broker.
So what? Sure you can trade dollars for gold, bitcoins for dollars, or maybe bitcoins for gold in any combination, hedge, bucket, or whatever... but the values fluctuate freely.  Neither dollars or bitcoins are "backed by gold".

[Bit_Happy]

One of the main things I was alluding to in the post, is that once enough, or even one extremely large trusted exchange becomes available, such as Coinbase, that deals with BTC/Gold pairing and easy hedging between fiat, BTC, and gold, it's going to make BTC gold backed by proxy.  That relationship fixes the majority of both gold and Bitcoin's weaknesses.  Gold is also one of the best ways to get old money into the game for people who don't understand it and don't trust it.

I see great value in the above description.
Calling it a "killer app of Bitcoin" isn't the best label, imo.

[Open4lies]

One of the main things I was alluding to in the post, is that once enough, or even one extremely large trusted exchange becomes available, such as Coinbase, that deals with BTC/Gold pairing and easy hedging between fiat, BTC, and gold, it's going to make BTC gold backed by proxy.  That relationship fixes the majority of both gold and Bitcoin's weaknesses.  Gold is also one of the best ways to get old money into the game for people who don't understand it and don't trust it.

Coinbase screwed so many people by cancelling after few days buy/sell order and not honoring original price. I wouldnt call Coinbase extremely trusted exchange 

About the gold, trading physicall gold is hard and expensive, and using virtual gold is risky

[DooMAD]

Bitcoin's "killer app" is that it's this image, minus the interest and the banks:



The money flows without the venomous banker leeches.

[LAMarcellus]

Edit: Trading Bitcoin for gold is an interesting application but not a "killer app" for Bitcoin.  Ever thought of the possibility that Bitcoin could replace gold rather than replace the USD?

I'm not even sure its an interesting application.  You have to have Bitcoin or Gold for any interest, for those with Bitcoin its hardly a driver (to get into Bitcoin) and while there's a few goldbugs that like the political aspects of Bitcoin, i reckon they're a very small minority and hardly likely to dump significant gold into Bitcoin.

Which comes to the question just what is the killer app?  Well, i'd be rich if i knew, but really the deeper question is what are the applications of Bitcoin, killer or otherwise, and which are even special.  Other than the core distributed trust mechanics, i cant think of something that is available elsewhere, or solved by a change to business models or process.  So a killer app needs to utilise that which is unique, the distributed trust, the blockchain. That's where the breakthrough will come from imo, an indirect use.

What we do know is there are 700 ounces of gold for every bitcoin.
I know a gold bug who sold his common AU to get into scarce BTC.    
 
Either way the market, if not manipulated or otherwise subjected to fraud, will provide price discovery.
The OP is onto something here. Although coinabul and amagimetals came to my mind as they both buy and sell AU and BTC. Seems to me that they would be in the position to develop the AU/BTC market and give birth to an exchange rate.

Oh and the market will also provide price discovery if governments are eviscerating this innovative market space. coinabul and amagimetals could be stopped dead in their tracks because they are a centralized type of operation.

Any solution would have to be de-centralized?? The thing that springs to mind is localbitcoins.com.
This website combined with that near radio whatever thingy that dating sites are now using.
Bam! anyone anywhere can meet people who are interested in settling a BTC/AU trade. Localbitcoins.com will facilitate meet ups and initializing contact.

my .00000002BTC

 I still don't understand how Ripple is anything except "monitor-able gateways". XAU is not physical gold.
Why would i want to use a middle man coin? I don't see the benefit. The whole point of bitcoin is to dis-intermediate.

[Wilikon]

The Bitcoin "killer app" is a BTC/Gold pairing exchange.  Such exchange would probably also see a USD/Gold, and BTC/USD pairing as well.  The hedging opportunities are limitless and the exchange would see large volume, most likely driving the price of BTC a lot higher as well.

(and no, I don't mean the Goldcoin crapcoin)

It's pretty much inevitable such a thing will eventually exist, the only question is, who will open it.

When "dumb" people will use bitcoin then it will be a success. When a 7 year old will abuse in-app purchases on mommy's phone to add more virtual candies all payed in bitcoin then it will be a success.

The "dumb people" would be the developers in my little scenario, not there yet.

[ArticMine]

Bitcoin's "killer app" is that it's this image, minus the interest and the banks:



The money flows without the venomous banker leeches.

Ever wonder how fractional reserve banking got started? Or for that matter how the Rothschilds https://en.wikipedia.org/wiki/Rothschild_family got started? It is because it is expensive and inconvenient to take delivery of gold.

[jparsley]

Some forex brokers allow  btc/usd/xau trading on mt4