Gold is very similar to Bitcoins because production is hard. The government can't create it any cheaper than anyone else. This rarity is what helps stabilize it

Gold is very similar to Bitcoins because production is hard. The government can't create it any cheaper than anyone else. This rarity is what helps stabilize its ability to hold value. Gold coins are not the same, and are similar to IOUs as you mention. But gold does not base its value off the fact that at one point it was used as a currency.