Bitcoin doesn't need anything physical to be backed with, scarcity has now been achieved digitally. I know the grandpas out there struggle to get this one.
Agree with the first part, but scarcity itself does not make Bitcoin into money. I would say it does have backing, not by something physical such as gold, or by the state, but by its expanding network of users.Yes, bitcoin is backed by the people. Gold was/is believed to be the most widely accepted asset and everybody recognized its value and importance. This value and importance was created by the people itself, who bestowed all their support and trust on Gold. Look how widely accepted it still is, even after more than a century. If the same kind of trust and support is provided to bitcoin by people all over the world, how can that not be regarded as the best currency in terms of store of value
