I wasn't saying gold doesn't have an exchange rate. I was saying it DOES have one for EACH currency (allowing this arbitrage scenario) and that's part of what makes it strong. My impression of Bitcoin was that they simply price it in Yen or USD or whatever is their best market, then convert from THAT currency into whatever other currencies they want through the real-world exchange rates of existing currencies, in order to display it with a unified favorable price.

However, these arguments aren't even worth it really since the price is so varied from exchange to exchange that let's face it -- the numbers are pretty much all distorted BS regardless of how the prices are determined. All they represent is real-time bids. It's like watching a big eBay auction on nothing and claiming the true value of the item is evidenced by the current bid.