Topic: [2018-0-03] Bitcoin is worth nothing and Backed by Nothing. Really? - page 2. (Read 425 times)

Bitcoin is really not backed by anything, but one cannot say that it is worth nothing. If it provides the transfer of funds to any part of the globe in a relatively short time, it can already be defined in our material world as a service, which is expressed in a certain value. Nor can it be believed that gold and crude oil do not cost anything. Both gold and crude oil can be directly applied and useful properties derived from them. Gold is a metal that does not rust and therefore just as a metal has a certain value. Crude oil already has the ability to burn and therefore can also be useful for people even without treatment. So almost everything has its original value.

I'm buying Bitcoin at current levels, and there are more smart minds doing the same, so it's even less worthless right now.

Everything has value as long as we believe it does--are willing to pay up for it--accept it as means of exchange. Bitcoin checks all boxes and the amount of people thinking the same keeps growing.

No coiners will always find a way to trash Bitcoin, and I don't expect it to change, not even when Bitcoin becomes super mainstream. There are still skeptics talking about gold like how people talk about Bitcoin.

Bitcoiners in the same way trash altcoins. It all comes down to whether or not it's valuable to the person directly. In case it isn't, it by default is painted off as useless, scam, and so forth....

If I ready to buy Bitcoin for $0.1 then it can't be worthless

Skeptics and critics have continuously attacked Bitcoin as worthless and a useless speculated object backed by nothing. I once came across one Bitcoin investor who out of frustration of losing all his investment sided with the popular line by critics that “Bitcoin is worth nothing and Backed by nothing.” I understand that Bitcoin is a very risky investment but to agree that the digital asset is worth nothing is impossible. When you ask me, any fiat currency we use today is worthless if it is true that bitcoin is worthless.

What gives gold its value? I believe many people agree that gold is not worthless. I also think that many people agree that crude oil is not worthless. It is worth noting that gold and crude oil were once useless in some time back until man found some value in them.

Gold was “neutral stuff” in some part of the continent. It had no value to them at all, until they realized that they could use it for many good things. This realization caused many people to go after gold. However, gold does not have an infinite supply. Gold is subjected to scarcity. So the many people demanding it for its function and the fact that gold is finite in supply gave it a value which most people are aware.

What am I trying to say? The value of an asset is determined by scarcity and utility. Bitcoin has a finite supply of 21 million. Bitcoin has a production cost. In other words, people who mine it do not mine it for free. They exchange their computing power for the digital asset.

It is quite funny when people criticize Bitcoin because they think it is backed by nothing. The truth is that there is an ongoing debate on the fact that the U.S dollar is also backed by nothing. When it happens that the U.S dollar is backed by nothing, does it make it less a currency? Of course not. In 2009, a website called “Seeking Alpha” published an article which contained the official statement of the U.S treasury which stated that the U.S dollar is backed by nothing. It is argued that dollar stopped being backed by gold since 1933. Even though the article was taken down from the website, it can still be accessed with the internet archives of “way back machine website.”

If this is true, then what keeps the U.S dollar going? The answer is “the confidence of the people.” The confidence that the U.S dollar is a standard of deferred payment and store of value makes it valuable and not less of a currency.

Bitcoin does not need to be backed by anything to be recognized as a valuable asset or whatsoever. All it needs is the confidence of the people and the recognition that it can be used everywhere for payment of goods and services.


Source:  https://zycrypto.com/bitcoin-is-worth-nothing-and-backed-by-nothing-really/