<p>Bitcoins are not backed by another currency or commodity. Bitcoins' value solely derives from their scarcity and utility. As their value doesn't derive from backing, the exchange rate is discovered by the market for example through trade on Bitcoin exchanges. Also see: <a href="https://bitcoin.stackexchange.com/q/182/5406">Where do bitcoins come from and what gives them their value?</a></p>

<p>Fiat currencies such as the US Dollar, Euro, or Renminbi are not backed by commodities either: They are backed by the power of the state distributing them as well as their citizens faith in the currency. The Gold Standard was discontinued in 1931, the succeeding <a href="https://en.wikipedia.org/wiki/Bretton_Woods_system" rel="nofollow noreferrer">Bretton Woods system</a> that fixed exchange rates of different currencies and their gold price was abolished in 1971.</p>

CC BY-SA 3.0
2015-09-09T13:24:28.887Z
2015-09-09T13:55:21.563Z
2017-04-13T12:47:33.283Z
Murch
<blockquote>
  <p>do bitcoins have a guaranteed value in gold</p>
</blockquote>

<p>no</p>

<blockquote>
  <p>the value of a currency is guaranteed by the amount of gold</p>
</blockquote>

<p>wrong</p>

CC BY-SA 3.0
2015-09-08T21:41:32.517Z
2015-09-08T21:41:32.517Z
amaclin
<p>I've never really given it a thought till now, but do bitcoins have a guaranteed value in gold similar to physical currency(banknotes/coins)?</p>

<p>As far as I know, the value of a currency is guaranteed by the amount of gold the state(s) using it dispose(s) of. </p>

CC BY-SA 3.0
2015-09-08T21:50:53.187Z
As mentioned in the answers, contemporary government currency (what you call "physical currency") has no guaranteed value whatsoever and is not related to gold in any way.
Meni Rosenfeld
<transactions><client><value>
Bitcoin physical monetary equivalent
Sebi
# Bitcoin physical monetary equivalent

(Asked by: username_0 on 2015-09-08)

I've never really given it a thought till now, but do bitcoins have a guaranteed value in gold similar to physical currency(banknotes/coins)?

As far as I know, the value of a currency is guaranteed by the amount of gold the state(s) using it dispose(s) of.

**Tags:** transactions, client, value

> **Comments:**
> **username_1**: As mentioned in the answers, contemporary government currency (what you call "physical currency") has no guaranteed value whatsoever and is not related to gold in any way.  

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## 2 answers

### Answer by username_2 on 2015-09-09. Score: 1

Bitcoins are not backed by another currency or commodity. Bitcoins' value solely derives from their scarcity and utility. As their value doesn't derive from backing, the exchange rate is discovered by the market for example through trade on Bitcoin exchanges. Also see: [Where do bitcoins come from and what gives them their value?](https://bitcoin.stackexchange.com/q/182/5406)

Fiat currencies such as the US Dollar, Euro, or Renminbi are not backed by commodities either: They are backed by the power of the state distributing them as well as their citizens faith in the currency. The Gold Standard was discontinued in 1931, the succeeding [Bretton Woods system](https://en.wikipedia.org/wiki/Bretton_Woods_system) that fixed exchange rates of different currencies and their gold price was abolished in 1971.


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### Answer by username_3 on 2015-09-08. Score: -3

> do bitcoins have a guaranteed value in gold

no

> the value of a currency is guaranteed by the amount of gold

wrong


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