Future Internet-of-Things (IoT) will connect billions of small computing devices embedded in the environment and support their device-to-device (D2D) communication. Powering this massive number of embedded devices is a key challenge of designing IoT since batteries increase the devices' form factors and their recharging/replacement is difficult. To tackle this challenge, we propose a novel network architecture that integrates wireless power transfer and backscatter communication, called wirelessly powered backscatter communication (WP-BC) networks. In this architecture, power beacons (PBs) are deployed for wirelessly powering devices; their ad-hoc communication relies on backscattering and modulating incident continuous waves from PBs, which consumes orders-of-magnitude less power than traditional radios. Thereby, the dense deployment of low-complexity PBs with high transmission power can power a large-scale IoT. In this paper, a WP-BC network is modeled as a random Poisson cluster process in the horizontal plane where PBs are Poisson distributed and active ad-hoc pairs of backscatter communication nodes with fixed separation distances form random clusters centered at PBs. Furthermore, by harvesting energy from and backscattering radio frequency (RF) waves transmitted by PBs, the transmission power of each node depends on the distance from the associated PB. Applying stochastic geometry, the network coverage probability and transmission capacity are derived and optimized as functions of the backscatter duty cycle and reflection coefficient as well as the PB density. The effects of the parameters on network performance are characterized.