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A comment on What Goldman Is Telling Big Money Clients About Bitcoin. Parent comment

Re:What Goldman Is Telling Big Money Clients About Bitcoin by runeks on Tuesday August 15, 2017 @07:45AM (#15017266)
Bonds comprise the vast majority of assets on the balance sheet of the central bank, so why not?

When gold was the primary asset on the balance sheet of central banks, we said that their currency was backed by gold. So why isn’t it backed by bonds now, when they have replaced gold in this regard?

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Re:What Goldman Is Telling Big Money Clients About Bitcoin by soVeryTired on Wednesday August 16, 2017 @12:07PM (#15028610)
When the dollar was backed by gold, it was possible to go to the central bank and redeem a fixed number of dollars for a certain amount of gold. While central banks do hold bonds on their balance sheets, it is not true that an investor can convert a predetermined dollar amount into a bond at the central bank: bond prices are determined by the market.
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Re:What Goldman Is Telling Big Money Clients About Bitcoin by ciro_langone on Tuesday August 15, 2017 @10:22AM (#15018405)
https://en.wikipedia.org/wiki/Fiat_money

Bonds have value because we assign a dollar value to them. The dollar value itself is fiat currency. The bonds do not value to dollar, the dollar values the bond.

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