Bitcoin is likely to undergo gradual deflation over time, given its limited emissions of 21 million coins. As a result, under the laws of supply and demand, most likely, the value of coins will constantly grow.
Only if you assume that demand grows.
Topic: What is bitcoin backed by? - page 4. (Read 1965 times)
Only if you assume that demand grows.
obviously if people who invest in bitcoin are the ones that support bitcoin. indirectly they make demands with increased bitcoin and keep supply decreasing. market cap increases and makes the possibility of bitcoin rising to become larger.
They were backed by the network which is operational with the blockchain technology. It doesn't have any backing similar to the gold or the other investments available around the globe. The algorithms and the open sourced flawless codings were the real backing asset for bitcoin.
I like the fact that bitcoins alone are worthless. The thing that gives them value is the payment network they live in. So bitcoins are backed by the worlds first global permissionless trustless payment network (the bitcoin network).
Bitcoins are backed by the only global blockchain payment network that has become so successful it is having trouble scaling fast enough.
Scaling issues are a great problem to have. If we didn't have scaling issues bitcoins wouldn't be worth as much as they are today, simply because the demand wouldn't exist to create a scaling problem.
In that respect, not scaling bitcoin will limit the price growth. But once scaling has been implemented the price can continue to grow with demand for using the network.
On a side note. Ether is backed by the ethereum network. It could then also be posited that dollars are backed by the united states financial system, haha I know which system I'm betting on lasting through the next decade.
Bitcoins are backed by the only global blockchain payment network that has become so successful it is having trouble scaling fast enough.
Scaling issues are a great problem to have. If we didn't have scaling issues bitcoins wouldn't be worth as much as they are today, simply because the demand wouldn't exist to create a scaling problem.
In that respect, not scaling bitcoin will limit the price growth. But once scaling has been implemented the price can continue to grow with demand for using the network.
On a side note. Ether is backed by the ethereum network. It could then also be posited that dollars are backed by the united states financial system, haha I know which system I'm betting on lasting through the next decade.
Most Bitcoin naysayers I know are obsessed with the fact that it's not "backed" by anything, and the fact that it does not have the blessing of the United States government. I'll usually let them know that most currencies, including US dollars, also have no inherent value other than what we perceive them to have based on what the government says they are worth. They are essentially "faith-based".
That is also true, a currency is nothing without it's investors and users but bitcoin price is actually backed up by miners those who mines bitcoin using peer to peer network and they are rewarded in every block that they solve and also they process transactions that is taking place in the blockchain in exchange for transaction fee and the result it makes btc price stronger or even higher.
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. 
Thats the point. Its backed by people. My usual retort is what is the USD backed by? They say the government and my response is "what is the governemnt backed by? The obvious answer is people. So in reality bitcoin and world currencies really are the same. If USD was still backed by the gold standard then all the haters would have a valid point. But that was always cryptos point, I can invent a currency and pay you in it, if you take it, it has value. The simple act of me paying you in that currency that was invented by a random person means that all currencies derive their value from people and therefore the entire system of monetary value is just one big joke.
The problem with this question is that nobody agrees on what "backed by" means.
To me, if a currency is "backed by" something, it means that the currency is guaranteed to always maintain a certain tangible value. For example, a gold-backed currency is guaranteed to always be worth a certain amount of gold.
By that definition, fiat currencies are backed by nothing and Bitcoin is backed by nothing. On the other hand, USTD is backed by dollars (as long as Tether remains honest and solvent).
Currencies that are "backed by the full faith and credit of the government", "backed by the military", or "backed by its users" are not really backed by anything.
To me, if a currency is "backed by" something, it means that the currency is guaranteed to always maintain a certain tangible value. For example, a gold-backed currency is guaranteed to always be worth a certain amount of gold.
By that definition, fiat currencies are backed by nothing and Bitcoin is backed by nothing. On the other hand, USTD is backed by dollars (as long as Tether remains honest and solvent).
Currencies that are "backed by the full faith and credit of the government", "backed by the military", or "backed by its users" are not really backed by anything.
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.
The market is volatile so it only means that no matter how hard bitcoins or other cryptocurrency will be going to drop its price, it will still manage to grow up again by the end of the day so try to invest right now while you have time.
The way you explained, things are not really like that. Nothing can be backed by people. If your statement were true, then a large group of people would create more things like bitcoin. Do you believe any other coins are like BTC?
And what backect BTC instead in your opinion?
No regulations, just people buying and selling their bits or buying and selling altcoins by using BTC in the process.
Only the reliability make this cryptocurrency strong because without that, this is nothing.
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.
If you are pertaining to the market price that will be going to pump up again one of this days then yes, the price of bitcoins is actually depending on the people if they will be investing even more due to the market's supply and demand.
The way you explained, things are not really like that. Nothing can be backed by people. If your statement were true, then a large group of people would create more things like bitcoin. Do you believe any other coins are like BTC?
When we talk about something being backed up, we mean those that are behind and sponsoring that particular project, investing funds in it to make sure that it continues.
Currencies can’t be back by a particular organization or whatever it is they think, rather it is being backed by individuals. And for Bitcoin, we are the ones that are backing it up. So Bitcoin is fully backed up, and by us. Anyone telling you that Bitcoin is not backed up is a pretty good liar.
Currencies can’t be back by a particular organization or whatever it is they think, rather it is being backed by individuals. And for Bitcoin, we are the ones that are backing it up. So Bitcoin is fully backed up, and by us. Anyone telling you that Bitcoin is not backed up is a pretty good liar.
Agree. Whereas fiat currencies are backed by people and the government, Bitcoin is backed only by its people. The best thing about Bitcoin, IMO, is that people are the ones responsible for giving it value. This is totally different from fiat currencies, since the central bank is responsible of determining the value of the currency. In this aspect, Bitcoin can be worth anything people want it to be, limited only by their imagination. What really gives value to Bitcoin or any other cryptocurrency in existence, is their technology and development team.
Depending on how active the development team is, and the number of innovations provided to the project are, would be the value the cryptocurrency’s going to get in the long term. Since Bitcoin has been tried and tested over the years, and it's the most secure blockchain to date, it's no wonder why it's a valuable cryptocurrency today. Therefore, even if there's no central authority responsible for giving value to Bitcoin (since no one controls it), the people as users of the cryptocurrency are the ones responsible for its value and survival in the mainstream world as times passes by. Just my opinion
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.
When we talk about something being backed up, we mean those that are behind and sponsoring that particular project, investing funds in it to make sure that it continues. Currencies can’t be back by a particular organization or whatever it is they think, rather it is being backed by individuals. And for Bitcoin, we are the ones that are backing it up. So Bitcoin is fully backed up, and by us. Anyone telling you that Bitcoin is not backed up is a pretty good liar.
I don't think that there is something that backing up by bitcoin like a government or an organization and the only thing that i think that puts value on bitcoin is how the people believe that it has value and i think that is the reason for bitcoin to get some value but even though there is no backing up for bitcoin, it is still worth the risk because it could be the future for our technology to run on blockchain.
I think bitcoin is backed by nothing but by itself. In the case of technology, bitcoin is ahead of all the currencies and is still the best of all digital currencies. We can't say much about bitcoin because the whole system of bitcoin is unknown, we can't see that how it can be backed but if talked about trust, security and privacy, then bitcoin is on the top in these As we know USD is backed by the value of the gold, but Bitcoin does not have anything that is backed by, but the value is setten based on the supply and demand, as much demand that much the value increases.
USD is not backed by gold. It is backed by nothing -- just like Bitcoin.
Oh no bro, USD is backed by USA government
Bitcoin is likely to undergo gradual deflation over time, given its limited emissions of 21 million coins. As a result, under the laws of supply and demand, most likely, the value of coins will constantly grow.
Only if you assume that demand grows.
Bitcoin is likely to undergo gradual deflation over time, given its limited emissions of 21 million coins. As a result, under the laws of supply and demand, most likely, the value of coins will constantly grow.
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.
When we talk about something being backed up, we mean those that are behind and sponsoring that particular project, investing funds in it to make sure that it continues. Currencies can’t be back by a particular organization or whatever it is they think, rather it is being backed by individuals. And for Bitcoin, we are the ones that are backing it up. So Bitcoin is fully backed up, and by us. Anyone telling you that Bitcoin is not backed up is a pretty good liar.
Indeed in making investments optimistic attitude is in need to open big opportunities with the main goal get a profit because to the tidal price of traders should be able to maximize the opportunities that exist to make it all a reality.
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