Post
Topic
Board Economics
Re: "Backing" - what does this actually MEAN?
by
deisik
on 17/12/2013, 06:55:24 UTC
Obviously you mean guarantee by a central authority. That's not going to happen ever because bitcoin don't wants that to happen.
You see bitcoin with fiat currency standards thats why you can't understand basic things.

No. Thats one form of backing (dollar).

Gold/Silver have backing (inherent).

Bitcoin has NO backing.
Bitcoin has that other backing that you talk about. It's the massive value of it's network and the thousands of people's that are strengthen that network.

Thats not backing.

Backing for you is something that you redeem dollars (or any other currency) for? I remember you saying that gold doesn't need backing since it has real value by itself (nice to look at and so forth). Could we then proceed to the assumption that its inherent properties are what gives it value (nice look, indestructibility, heaviness, etc)?