The entire world banking system for hundreds of years was based on credit backed by gold, so it definitely can work.
My only point was that this wouldn't equate to more btc in circulation, just more credit.
My only point was that this wouldn't equate to more btc in circulation, just more credit.
Just adding that the system above, rightly or wrongly was not sufficient for the expanding credit requirements of the world.
> so it definitely can work. Depends upon what your definition of work :)
> My only point was that this wouldn't equate to more btc in circulation, just more credit.
Exactly. And be subject to the problems with bank runs because of the inelastic nature of gold.