Bitcoin Forum
June 25, 2018, 12:28:57 PM *
News: Latest stable version of Bitcoin Core: 0.16.1  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: What world currencies are actually backed by gold?  (Read 2046 times)
PHPAdam
Jr. Member
*
Offline Offline

Activity: 42
Merit: 0


View Profile
April 25, 2011, 12:56:40 PM
 #1

http://answers.yahoo.com/question/index?qid=20080827115251AAYDgdW
Q: What world currencies are actually backed by gold?
A: None

Im no economist, but what would it take for bitcoins to be "backed by gold"?

Possible, Plausible or Impossible?
I see two possibilities either a wealthy person puts up some gold to back the whole currency, or a bitcoin wallet provider purchases gold and its customers wallets are backed by the gold standard.


P.S. I have no gold. Just thinking out loud.
1529929737
Hero Member
*
Offline Offline

Posts: 1529929737

View Profile Personal Message (Offline)

Ignore
1529929737
Reply with quote  #2

1529929737
Report to moderator
1529929737
Hero Member
*
Offline Offline

Posts: 1529929737

View Profile Personal Message (Offline)

Ignore
1529929737
Reply with quote  #2

1529929737
Report to moderator
1529929737
Hero Member
*
Offline Offline

Posts: 1529929737

View Profile Personal Message (Offline)

Ignore
1529929737
Reply with quote  #2

1529929737
Report to moderator
The World's Betting Exchange

Bet with play money. Win real Bitcoin. 5BTC Prize Fund for World Cup 2018.

Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
FatherMcGruder
Sr. Member
****
Offline Offline

Activity: 322
Merit: 250



View Profile WWW
April 25, 2011, 01:02:04 PM
 #2

You can just exchange gold and bitcoins at whatever rate you specify.

Use my Trade Hill referral code: TH-R11519

Check out bitcoinity.org and Ripple.

Shameless display of my bitcoin address:
1Hio4bqPUZnhr2SWi4WgsnVU1ph3EkusvH
PHPAdam
Jr. Member
*
Offline Offline

Activity: 42
Merit: 0


View Profile
April 25, 2011, 01:05:51 PM
 #3

I think theirs a difference between "backed by gold" and exchangeable for gold.
FatherMcGruder
Sr. Member
****
Offline Offline

Activity: 322
Merit: 250



View Profile WWW
April 25, 2011, 01:12:26 PM
 #4

But that's what governments did. They specified exchange rates and expected people to believe that they held as much gold as the currency in circulation represented.

Use my Trade Hill referral code: TH-R11519

Check out bitcoinity.org and Ripple.

Shameless display of my bitcoin address:
1Hio4bqPUZnhr2SWi4WgsnVU1ph3EkusvH
hazek
Legendary
*
Offline Offline

Activity: 1078
Merit: 1001


View Profile
April 25, 2011, 03:52:31 PM
 #5

Although almost every if not every central bank has some gold reserves but not one fiat currency on the whole planet is backed by gold anymore. The last was the Swiss Franc which was backed 40% by gold up until 2000 where they had a referendum and the people voted to go off of it.

So what we have now is a global monetary system of monopoly money backed up by mostly what countries produce and how powerful of an army they have while all the population is getting robbed left and right through artificial low interest rates.

My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right)

If however you enjoyed my post: 15j781DjuJeVsZgYbDVt2NZsGrWKRWFHpp
hazek
Legendary
*
Offline Offline

Activity: 1078
Merit: 1001


View Profile
April 25, 2011, 04:04:02 PM
Merited by Kprawn (1)
 #6

http://answers.yahoo.com/question/index?qid=20080827115251AAYDgdW
Q: What world currencies are actually backed by gold?
A: None

Im no economist, but what would it take for bitcoins to be "backed by gold"?

Possible, Plausible or Impossible?
I see two possibilities either a wealthy person puts up some gold to back the whole currency, or a bitcoin wallet provider purchases gold and its customers wallets are backed by the gold standard.


P.S. I have no gold. Just thinking out loud.

You are asking the wrong question. Gold didn't back money, gold was the money. And when people started to warehouse it in bank vaults they got receipt which they started trading as if it was gold itself. Later governments through laws and enforcement through force established a monopoly on these paper receipts, gave them names and proclaimed how much weight is represented with a certain number. For instance in the beginning of the 19th century $20 was redeemable for 1oz of gold.

So the phrase "backed by gold" was miss-used ever since the governments grabbed the monopoly on money. The last country where this happened was the USA in 1913 when the FED was created. Before the FED dollars were basically although government issued receipts for gold. But with the FED it soon changed to legal tender which it is today.


Basically the important point to take away from post is that gold is money. And that paper money was just suppose to have made it's trade easier. So when you're looking at BitCoins you cannot have it "backed by gold" because they are two different commodities and the most that you can have is open free trade between the two. Eventually I suspect will get to a very stable and constant price of gold in BitCoins and vice versa.

My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right)

If however you enjoyed my post: 15j781DjuJeVsZgYbDVt2NZsGrWKRWFHpp
tomcollins
Full Member
***
Offline Offline

Activity: 182
Merit: 100


View Profile
April 25, 2011, 04:09:31 PM
 #7

http://answers.yahoo.com/question/index?qid=20080827115251AAYDgdW
Q: What world currencies are actually backed by gold?
A: None

Im no economist, but what would it take for bitcoins to be "backed by gold"?

Possible, Plausible or Impossible?
I see two possibilities either a wealthy person puts up some gold to back the whole currency, or a bitcoin wallet provider purchases gold and its customers wallets are backed by the gold standard.


P.S. I have no gold. Just thinking out loud.

You need a warehouse with 21 million units of gold.  You pick the units.  You then say you will redeem 1 BTC for each unit.  You need to somehow be bound at this rate.  Now it's backed by gold.

It would be silly of you to do this.  If 1 BTC ever was worth less than the gold, you'd be the proud owner of a ton of bitcoins and be out a lot of gold.  If it became more, people would bring you gold and want bitcoins.

Pegging one currency to the other always results in one hoarding the more valueable one and redeeming it for the less valued one.
atariguy
Full Member
***
Offline Offline

Activity: 252
Merit: 100


We Revolutionize The Cloud


View Profile
February 19, 2018, 04:21:45 PM
 #8

Actually it is, but it is developing now, the new currency namel Gold, russian company GoldMint is going to release it in Q2 2018, check their white paper if interested it that kind of investments.

IAGON —  WE REVOLUTIONIZE THE CLOUD | ICO | DISCUSSION |
First77
Member
**
Offline Offline

Activity: 182
Merit: 27


View Profile WWW
February 19, 2018, 04:36:26 PM
 #9

You can just exchange gold and bitcoins at whatever rate you specify.

Sell Bitcoin and buy Gold to be on the safe side. All the reputed gold and silver dealers sell for "cash money".

MoonHodler
Member
**
Offline Offline

Activity: 115
Merit: 10

Bitcoin: 1HrWs3tDzWr13zocV3qP9ENRLgiDuewtsu


View Profile WWW
February 19, 2018, 04:43:40 PM
 #10

"backed" means that if you have (1 unit of currency) be it one dollar, euro, or pound I can exchange it for 1 oz of gold .. now, later or after 10 years and still get that 1 oz or 1 gram of gold.

no currency as far as I know promises that it would pay the equivalent of gold in the future, instead you get the current market price for GBP/GOLD or EUR/GOLD  for a currency to be backed by gold it would be EUR=GOLD

Enjoy your life, one day at a time. Bitcoin Address: 1HrWs3tDzWr13zocV3qP9ENRLgiDuewtsu
ManaMan
Member
**
Offline Offline

Activity: 224
Merit: 31


View Profile
February 19, 2018, 04:53:37 PM
 #11

http://answers.yahoo.com/question/index?qid=20080827115251AAYDgdW
Q: What world currencies are actually backed by gold?
A: None

Im no economist, but what would it take for bitcoins to be "backed by gold"?

Possible, Plausible or Impossible?
I see two possibilities either a wealthy person puts up some gold to back the whole currency, or a bitcoin wallet provider purchases gold and its customers wallets are backed by the gold standard.


P.S. I have no gold. Just thinking out loud.

Bitcoin can't be backed up by gold, it was not created to be this way. I mean if we look at what tether (USDT) is doing by pegging their coin to real USD value and there are a lot of talks that they create more coins than they actually have in reserve. So imagine if you had gold backed up crypto, it could easily end up like tether and thus we can easily see similarities with fiat currencies. Fiat was backed up by gold way back and then slowly through time it wasn't and today governments can print as much as they want. So it will be really hard to create a system for crypto to be backed up by gold as it will need a lot of trust. Plus you will have to have reserve of gold somewhere and pay for somebody to safeguard it etc.
MoonHodler
Member
**
Offline Offline

Activity: 115
Merit: 10

Bitcoin: 1HrWs3tDzWr13zocV3qP9ENRLgiDuewtsu


View Profile WWW
February 19, 2018, 04:54:09 PM
 #12

For bitcoin to be backed by gold, this has to be accepted: total bitcoin supply = total gold supply

171,300,000 KG of gold = 21,000,000 BTC

which will equal almost (8 KG) per (1 Bitcoin)

and to really back it by gold, governments will have accept the exchange of bitcoin for their gold reserves.

Enjoy your life, one day at a time. Bitcoin Address: 1HrWs3tDzWr13zocV3qP9ENRLgiDuewtsu
Kprawn
Legendary
*
Offline Offline

Activity: 1526
Merit: 1038


View Profile
February 19, 2018, 05:02:06 PM
 #13

It is not a good idea to peg bitcoins to anything. A dollar peg is when a country maintains its currency's value at a fixed

exchange rate to the U.S. dollar. The country's central bank controls the value of its currency so that it rises and falls along

with the dollar. Most of the Gold in the world are protected by Banks and governments. {So we would be giving up power to

whomever is controlling the Gold value}  Wink

░░░░░░░▄▄▄▄▄▄
░░░░▄██████████▄
░░░██████████████
░░██████▐▌██████
█████░░░░░░░▀█████
██████▄▄░░▄▄░░██████
████████░░▀▀▄██████
████████░░▄▄▄░░█████
██████▀▀░░▀▀▀░░█████
█████░░░░░░░░█████
░░██████▐▌██████
░░░██████████████
░░░░▀██████████▀
░░░░░░░▀▀▀▀▀▀
░░░

                   BitCloak Bitcoin Mixer  
  BTC & BCH | API| MULTIADDRESS| PGP PROOF|  FAST MIX |  ESCROW|  MORE ! 

░░░░░░░▄▄▄▄▄▄
░░░░▄██████████▄
░░░██████████████
░░██████▐▌██████
█████░░░░░░░▀█████
██████▄▄░░▄▄░░██████
████████░░▀▀▄██████
████████░░▄▄▄░░█████
██████▀▀░░▀▀▀░░█████
█████░░░░░░░░█████
░░██████▐▌██████
░░░██████████████
░░░░▀██████████▀
░░░░░░░▀▀▀▀▀▀
░░░

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!