Topic: Im confused, where is this money coming from? - page 3. (Read 4350 times)
Lots of computers acting simultaneously to create worthless posts.
When someone "mines" for bitcoins, where does the money come from? I know back in the old days, when the U.S. printed money, they had gold to back it up. What is backing bitcoins? Could someone explain it in laymans terms?
The money comes from the effort of their mining and the value in the blocks they've mined. It's the same as when someone mine's gold -- the value comes from the effort of their mining and the rarity of gold. BitCoins don't need to be backed because they're scarce. You only need to back something that's not scarce. (That's why gold itself doesn't need to be backed.)
When someone "mines" for bitcoins, where does the money come from? I know back in the old days, when the U.S. printed money, they had gold to back it up. What is backing bitcoins? Could someone explain it in laymans terms?
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