Bitcoin to be pegged to gold

[Beliathon]

fiat like USD is an IOY which used to represent gold by being backed by gold. Now fiat is backed by a promise and the general consensus that it is worth something.

I feel it's important to mention that nation-state fiat is not just backed by a promise, but it's backed by a promise of legitimized violence.

That's the only reason it has continued to exist as long as it has (which is really not very long at all in historical terms, less than 100 years).

[wasserman99]

You can't peg bitcoin to gold.
You can peg fiat to gold.

bitcoin has value due to scarcity like gold.
fiat like USD is an IOY which used to represent gold by being backed by gold. Now fiat is backed by a promise and the general consensus that it is worth something.

In theory, this would be possible. You would have to have some amount of gold that backs each bitcoin. You would need to trust some central authority to hold an amount of gold that corresponds to each bitcoin and exchange it upon demand.......actually when thinking about it a little bit I don't think it is possible. You would have to deal with the issue of having a central authority (which defeats the point of bitcoin in the first place) that would control the assets that backs bitcoin, and would have to deal with the issue of mining; who would pay the miners for each block that is mined?

[H.W.Z]

I don't think it is viable. Bitcoin is digital intangible, decentral asset. Gold is tangible asset. They have contradicted concept. The gold holders will be unhappy to peg gold to virtual things. They scare gold's value will be drawn down. Bitcoin holders may be happy to see the price skyrocket and could profit a lot. But the technology fans will not be satisfied. The independent of bitcoin will be impacted.

[snappa4ever]

I don't think it is viable. Bitcoin is digital intangible, decentral asset. Gold is tangible asset. They have contradicted concept. The gold holders will be unhappy to peg gold to virtual things. They scare gold's value will be drawn down. Bitcoin holders may be happy to see the price skyrocket and could profit a lot. But the technology fans will not be satisfied. The independent of bitcoin will be impacted.

It is not a potential solution but you have the reasons incorrect. Ecuador is going to have their digital currency (intangible asset) backed by some other asset (likely a tangible asset). In order for this to be a possibility, someone with a lot of gold would need to essentially use that gold to back bitcoin. You would also need someone to be very charitable to give the miners ~$12,000 worth of gold every time that a new block is found.

[cyberpinoy]

I don't think Bitcoin and gold need to compete with one another, that for Bitcoin to rise gold has to collapse. I think both of them need to be on parity of each other, in this case Bitcoin to be on parity with gold. Bitcoin and gold share very much the same fundamentals, both are a store of value of deflationary nature against the inflationary fiat.

Actually gold really isn't worth as much as it is now but it really doesn't matter, people just want something that does not lose value to back against fiat. Bitcoin is the digital equivalent of gold. Just like how money evolve to being digital, mere numbers on a computerized banking system, gold too will be digitized. An that digitized gold is Bitcoin.

So why not peg Bitcoin to gold? Of course Bitcoin being a decentralized and a non-authoritative system no one can force Bitcoin to be pegged to anything but only the people who use bitcoins themselves. Can there be any other way that Bitcoin be priced at some specific value other than being dictated by the free market, that is the exchanges, which are prone to manipulation?

bitcoin (at this time) can not compete with Gold, Gold has a demand more than its tradable market, it is used in manufacturing, people buy it as jewelry and other personal interest it has a demand that outweighs anything Bitcoin has going for it. As of now it is the basis of a few currencies.

Gold does lose value off and on weekly against Fiat, it stays stronger but the COMEX and the Fixing banks control its price as they deem necessary. it has paper contracts, and for those of you who do not know what that is, a paper contract is a contract a bank uses that moves the price of gold they way they want it to go.it is not real gold only an IOU from a bank saying yes we have this much gold and agree to buy/sell that gold to you at this time.

Bitcoin can not be pegged to Gold for the simple reason it has no comparison, as I have said many many times in this forum and bitcoin lovers choose to make excuses and ignore me, Bitcoin has no demand, it has no value other than its tradable market, no one has an urge to buy it, no one needs it and less and less people want it every day.

yes Bitcoin could have a chance to be priced at a specific value but this will only happen when it has a real demand, it has to stand out in a way gold and fiat do, people have to need it, want it and desire to buy it, until that happens you are stuck with only its tradable market value.

[nuff]

Bitcoin has no demand, it has no value other than its tradable market, no one has an urge to buy it, no one needs it and less and less people want it every day.

Utter falsehood. Bitcoin has ridiculous demand as recently shown by the purchase of the silk road coins, and is growing, its base value is the cost to produce it and that is rising as difficulty gets harder and harder, people do have the urge to buy (I know I have), people who needs to transfer large sums of money internationally needs it, and more and more people want it (I know I do) as adoption grows. Bitcoin may not go up as much as it's spreading.

[cbeast]

Bitcoin won't be pegged to anything because someone says so. Bitcoin will peg itself to gold because it makes sense. As more people understand that Bitcoin and gold are a perfect marriage, the prices of both will reach equilibrium. Treasuries will find more security with crypto than vault records.

[snappa4ever]

Bitcoin has no demand, it has no value other than its tradable market, no one has an urge to buy it, no one needs it and less and less people want it every day.

Utter falsehood. Bitcoin has ridiculous demand as recently shown by the purchase of the silk road coins, and is growing, its base value is the cost to produce it and that is rising as difficulty gets harder and harder, people do have the urge to buy (I know I have), people who needs to transfer large sums of money internationally needs it, and more and more people want it (I know I do) as adoption grows. Bitcoin may not go up as much as it's spreading.

No "currency" has any real value other then the fact that there is demand for it. Gold has very little real value (much less then what the market gives it) but there is demand. Dollars, and Euros have no real value but people have demand for these currencies. The same is true for bitcoin.

[cbeast]

Bitcoin has no demand, it has no value other than its tradable market, no one has an urge to buy it, no one needs it and less and less people want it every day.

Utter falsehood. Bitcoin has ridiculous demand as recently shown by the purchase of the silk road coins, and is growing, its base value is the cost to produce it and that is rising as difficulty gets harder and harder, people do have the urge to buy (I know I have), people who needs to transfer large sums of money internationally needs it, and more and more people want it (I know I do) as adoption grows. Bitcoin may not go up as much as it's spreading.

No "currency" has any real value other then the fact that there is demand for it. Gold has very little real value (much less then what the market gives it) but there is demand. Dollars, and Euros have no real value but people have demand for these currencies. The same is true for bitcoin.

Fiat currencies have value by fiat. That's the definition. You pay taxes with fiat even if you only do business with bitcoins.

[qwerty555]

I am not in favour of a gold peg due to manipulation of paper gold price.

Simple: as the chart below shows, there is no better way to continue masking the demand for physical gold than to keep selling paper gold, in this case via its most liquid manifestation, the GLD ETF. It is this ETF that just saw the notional value of gold "holdings" backing the paper manifestation of its "goldness", drop to just 776 tons, the lowest since 2008 and nearly half the maximum "holdings" of 1,353 tons reached in December 2012.

http://www.zerohedge.com/news/2014-09-20/meanwhile-heres-what-super-rich-are-rushing-buy

http://www.zerohedge.com/news/2014-09-20/why-china-russia-china-are-now-enemy

[doof]

FFS.  Pegging?  Really???

[Oscilson]

Not possible to peg.

[aztecminer]

I don't think Bitcoin and gold need to compete with one another, that for Bitcoin to rise gold has to collapse. I think both of them need to be on parity of each other, in this case Bitcoin to be on parity with gold. Bitcoin and gold share very much the same fundamentals, both are a store of value of deflationary nature against the inflationary fiat.

Actually gold really isn't worth as much as it is now but it really doesn't matter, people just want something that does not lose value to back against fiat. Bitcoin is the digital equivalent of gold. Just like how money evolve to being digital, mere numbers on a computerized banking system, gold too will be digitized. An that digitized gold is Bitcoin.

So why not peg Bitcoin to gold? Of course Bitcoin being a decentralized and a non-authoritative system no one can force Bitcoin to be pegged to anything but only the people who use bitcoins themselves. Can there be any other way that Bitcoin be priced at some specific value other than being dictated by the free market, that is the exchanges, which are prone to manipulation?

precious metals are manipulated down atm and will probably stay that way until the usd finally starts to gives up the ghost.

[BittBurger]

I don't think Bitcoin and gold need to compete with one another, that for Bitcoin to rise gold has to collapse. I think both of them need to be on parity of each other, in this case Bitcoin to be on parity with gold. Bitcoin and gold share very much the same fundamentals, both are a store of value of deflationary nature against the inflationary fiat.

Actually gold really isn't worth as much as it is now but it really doesn't matter, people just want something that does not lose value to back against fiat. Bitcoin is the digital equivalent of gold. Just like how money evolve to being digital, mere numbers on a computerized banking system, gold too will be digitized. An that digitized gold is Bitcoin.

So why not peg Bitcoin to gold? Of course Bitcoin being a decentralized and a non-authoritative system no one can force Bitcoin to be pegged to anything but only the people who use bitcoins themselves. Can there be any other way that Bitcoin be priced at some specific value other than being dictated by the free market, that is the exchanges, which are prone to manipulation?

Why did you write "Bitcoin to be pegged to gold" like this was an announcement, or a news article conveying this fact to be true?

Are there click whores even on discussion forums?

If you're going to start a thread asking a question, dont make a title that looks like a factual announcement.  I hate reading that shit only to find out that the OP thinks he has a neat idea.

[thecast]

How would this even work? you cant peg Bitcoin two Gold, they work differently ..

[cbeast]

How would this even work? you cant peg Bitcoin two Gold, they work differently ..

Probably the same way gold ETFs do.

[franky1]

bitcoin (at this time) can not compete with Gold, Gold has a demand more than its tradable market,

bitcoin (at this time) can  compete with Gold, bitcoin has a demand more than its tradable market,

this is because people are valuing 13mill+ coins based on PHP based exchanges that only play around with satoshi dust amounts. yet REAL bitcoin investors are not buying/selling bitcoins via these crappy php based exchanges.

think about when people in february finally realised they cant get their FIAT out of mtgox, bitcoin on mtgox sank to $100, whilst the other exchanges that were not freezing fiat withdrawals were still trading and remaining above $400.

same thing is happening now, the AMLKYC crap is preventing anyone from realy trading anywhere close to $10k, thus many are simply ignoring the 'public' exchanges and doing alot of private trades.

bitcoin is not just a replacement of paypal/debit cards for payments of goods and services. bitcoin is an investment vessel for stocks, gambling, shares, contracts, speculation and a whole host of other things. i think that cyberpinoy is just narrow minded and stuck in the mindset of the word 'tangible uses'. and has not truly understood what the word 'asset' means as many things do not have to have tangible uses, for them to be valuable.

[zorke]

How would this even work? you cant peg Bitcoin two Gold, they work differently ..

Probably the same way gold ETFs do.

Who would pay for the block rewards of the miners? As it stands now, the network derives it's value from the security of the network, so when a miner finds a block, keeping the network secure, "the network" rewards the miners in the amount of 25 BTC. However if bitcoin got it's value from gold then the fact that the network is secure would add little additional value to the network and the miners would have no way of getting rewarded

[cube3]

so far no one thing just increases value since its emergence. and all has deflation and inflation

[cbeast]

How would this even work? you cant peg Bitcoin two Gold, they work differently ..

Probably the same way gold ETFs do.

Who would pay for the block rewards of the miners? As it stands now, the network derives it's value from the security of the network, so when a miner finds a block, keeping the network secure, "the network" rewards the miners in the amount of 25 BTC. However if bitcoin got it's value from gold then the fact that the network is secure would add little additional value to the network and the miners would have no way of getting rewarded

Using Colored Coin, a licensed gold broker could issue their own gold bitcoins and back them with their own vault.