Comment Re:Governments can't inflate the currency (Score 1) 430
Total gold already mined: 165.000 metric tons
Gold mined per-year: 2500 tons
(source: http://www.numbersleuth.org/worlds-gold/)
So no country could "produce a crap load of gold [...] controlling the value of gold [...] offering to supply gold cheap, or flooding the market with gold" since total mining in all countries in the world adds up to less than 2% of all the gold in the world.
Even the Spanish in the 16th centuy didn't manage to do so when they brought to Europe a "crap load of gold" from South America.
So your argument seems unsuported by facts.
As for bitcoins, their problem is and always has been that first movers had a huge advantage: in the beginning, anybody with a pocket calculator could produce a "crap load" of bitcoins, so many did so: now that bitcoins are near impossible to produce, those people are trying to find suckers to dump their "cheaply made" bitcoins on for hard cash.
Any monetary system that starts up with some having a major advantage and others being at a major disadvantage is inherently flawed.