Eli5 what it means when a currency is said to be backed by gold

Question

I see this all the time, mostly when references are made about the dollar and how it was once backed by gold

In: 164

Answer 1

Before you get caught up by the goldbugs (people who want to return to the gold standard), know that having your currency supply not be in your control is horrid for many, many reasons. There’s a reason nobody uses it anymore.

Part of the whole BTC scam is that it appeals to goldbugs.