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Topic: What is bitcoin backed by? - page 10. (Read 1937 times)

legendary
Activity: 2562
Merit: 1441
February 13, 2018, 01:28:33 PM
#8
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

The real question may be whether currencies being gold backed collateral can function as a preventive measure to mitigate the risk of dangers posed by overprinting or hyperinflation based crashes fueled by state issued deficit or debt. Gold backed currencies like the (geman) deutsche mark have hyperinflated and crashed in past history. Gold standards were largely being utilized before the advent of the internet, digital currencies or the recently proposed "cashless societies"(which are the furthest thing from being gold backed or NOT creating money out of thin air  Cheesy).

The concept of "gold backing" being a valid protection scheme against negative consequences could be archaic or obsolete. Gold standards were devised long before the internet existed. Long before credit cards or modern day conveniences. I think civilization might benefit from greater acknowledgement of "gold backed" securities no longer fulfilling their intended role.
jr. member
Activity: 46
Merit: 6
February 13, 2018, 09:06:15 AM
#7
Bitcoin is backed by people, energy and time.
member
Activity: 140
Merit: 11
Thank you for +Merit
February 13, 2018, 08:47:18 AM
#6
In fact, demand is supported by people. I recently read an interesting article. It wrote about the importance of HODL in the growth of bitcoin and that it is investors that are an important element of the price movement up.
newbie
Activity: 33
Merit: 0
February 13, 2018, 08:35:05 AM
#5

I believe that bitcoin can change history even though many people say bitcoin is not supported by anyone, for those who say "bitcoin is not supported by anyone" maybe they do not believe that bitcoin can change history
hero member
Activity: 2296
Merit: 953
Temporary forum vacation
February 13, 2018, 07:59:16 AM
#4
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

But the reality is that Bitcoin is backed by nothing other than the value that peers, users, the network itself provides to people. I know people are really building up hype into the so called tokenized economy, with digital assets backed by physical tangible assets like precious metals and fiat, but this is the beauty of Bitcoin to me.

After all, so many currencies in the world are backed by nothing but promises. And you can see what happens that governments cannot always fulfil those promises. See Argentina, see Cyprus, and many other examples in recent past.
newbie
Activity: 40
Merit: 0
February 13, 2018, 07:55:03 AM
#3
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


Bitcoin supported
1) money idealists who believe that bitcoin will be able to defeat the banking system and become a new world currency.
2) money traders who have brought their money to the stock exchange in an effort to earn and buy bitcoins from miners and other traders. (This includes except for single traders and financial funds)
3) companies producing asiki, since if something happens with bitcoin, they will actually go bankrupt because ASIC can only consider Bitcoin hashes.
4) companies that act as merchants. That is, they allow shops to sell goods for bitcoins, while the store will receive payment in rubles / dollars / euros ...
5) illegal operations with money laundering / drug sales and other. Silkroad and analogues.

In general, some ecosystem has bitcoin Smiley If I did not name any spheres, then maybe someone else will add.
newbie
Activity: 32
Merit: 0
February 12, 2018, 11:16:00 PM
#2
What is any currency backed by? Currency is only backed by the people transacting with it. For example, the dollar only has value because its users see it as a fair exchange for goods. Like any currency, its value is subject to those who agree to use it.
newbie
Activity: 19
Merit: 0
February 12, 2018, 08:14:06 PM
#1
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
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