What Is Bitcoin Backed By? | Crypto Craft

  • What Is Bitcoin Backed By?

    From bitcoinmagazine.com

    People often say: “bitcoin can’t be money, it isn't backed by anything.” This is an old way of thinking that originated with paper money. Prior to paper money, people used precious metal coins (such as gold) because they maintained strong monetary properties: scarcity, durability, divisibility, portability, fungibility, and acceptability (the six monetary properties). Paper became money because it was superior to gold in terms of divisibility and portability BUT it lacked scarcity. People reasoned that we could benefit from the greater divisibility/portability of paper money as long as it was redeemable in a ... (full story)

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RossEdwards
Jan 23, 2022 7:02am
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An interesting analysis on what Bitcoin is really worth -
https://bankunderground.co.uk/2021/12/14/what-is-a-bitcoin-worth/
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OutThere
Jan 23, 2022 12:13pm
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The past, current and possibly the forseeable future of Bitcoin is always the same: Waiting to see if it is ultimately just a fad or not.
So far it is. Noting more than a flowery handbag that some like to add to their collection along with other frilly crypto handbags that keep getting added to the heap.
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Goat
Jan 22, 2022 11:48am
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In the same way USD is backed by faith in the US government, BTC is backed by faith in the Bitcoin miners. If either loses credibility, the currency goes to zero.
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umbrella man
Jan 22, 2022 1:40pm
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It’s backed by bunch of 1diots who are willing to buy it and hold it.
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UKBanter
Jan 23, 2022 9:50am
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Quoting umbrella man
It’s backed by bunch of 1diots who are willing to buy it and hold it.
I disagree though I will refrain from calling people on the other side of my position names.
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Thallus
Jan 22, 2022 2:05pm
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Usd is backed by the US government who will print more when they need more but mean while you’re making the same as you were a year ago
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