Re: What is bitcoin backed by?

People believe bitcoin is backed by nothing. I think that is not the truth. I believe bitcoin is actually backed by people themselves. It is backed by none other than just you. We all witnessed the price has been fluctuating by all those FUDs and bad news. The price changes by emotion and non logical facts. I believe you hold bitcoin no matter what happened and would happen, and believe it is backed by all of us, it would make a history. Cool

No currency is backed by anything, even if a currency was backed by gold you need to ask what backs that gold? And the answer to that is simple, nothing backs gold except the trust people have put in it for thousands of years, bitcoin is the same, we trust in it because it is an incredible concept which has been accurately described as digital gold with the huge advantages that brings.

You know that there are uses for gold, right? There's a bunch of industrial, medicinal and aesthetic uses for gold, something that Bitcoin can't really boast. It's not just misplaced interest and trust in something that has no value. There's a ton of significant uses and it is a relatively finite resource that can be used in weapons and all kinds of other fun uses which will burn through the supply we do have. Bitcoin can't really say the same for any sort of uses.

Those uses were of gold as a commodity, gold was such a good commodity that it began to be used as a way to barter more effectively but it was not until coinage was invented that it became money but as money gold is not backed by anything those uses are really not enough to justify its huge price, what justifies the huge price of gold is the trust people have in it as money.