Rand Paul Suggests Backing Bitcoin With Stocks

SonicSpike writes: "In a recent interview, Senator Rand Paul said there's one thing he would change about Bitcoin: it should be backed by something with intrinsic value, like stocks. He said, 'I was looking more at it until that recent thing [sic]. And actually my theory, if I were setting it up, I'd make it exchangeable for stock. And then it'd have real value. And I'd have it pegged, and I'd have a basket of 10 big retailers I think it would work, but I think, because I'm sort of a believer in currency having value, if you're going to create a currency, have it backed up by — you know, Hayek used to talk about a basket of commodities? You could have a basket of stocks, and have some exchangeability, because it's hard for people like me who are a bit tangible. But you could have an average of stocks, I'm wondering if that's the next permutation.'"

Comments

Violence.

[Ihlosi]

Other than fresh water, oxygen, shelter, and sustenance, anyway.

Violence (and any means increasing the potential violence an actor has at his disposal) has intrinsic value.

In fact, in any system with potentially malicious actors, a currency must be backed by some degree of violence. Otherwise, the malicious actor can just take the currency by force (if he considers it valuable).