Nah I don't think fiat money is backed by much of anything. When I say money represents a "future claim" on goods and services I mean the literal definition of a claim: a demand or request for something considered one's due. Which is exactly what it is.

So instead of exchanging product A for service B we exchange product A for money and then buy service B

This allows us to transfer assets without a direct trade through the use of a medium (money)



Wrong. Each BTC that is mined increases the difficulty of the next computation. In order to solve a more difficult equation, more electricity is required. Therefore, Bitcoin increases in value when mining costs rise. The price needs to rise in order to cover the losses of the miners (which they receive in direct payment of BTC).

Real Life Example: If cost of goods sold go up, so should your sale price