What is bitcoin backed by? - page 6.

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: Nerman on June 21, 2018, 12:58:39 AM

I agree, Bitcoin is backed by the people and actually this is what some financial experts are baffled with, but they forgot that the value of one thing is only determined by the people price on willing to buy it. If we agree to buy super car for $10,000,000 even though the price to create it is just $100,000 then that car is worth $10,000,000. It is same with other assets like stocks and other currency.

Yes. People determine whatever value they want for Bitcoin. Since there's no central issuer or authority, Bitcoin is free from any standard valuation. It's based on belief and its underlying technology. There's no other explanation, considering that Bitcoin is just programmable money composed of ones and zeros. If we were to base our valuation on this, then Bitcoin would be worthless. However, because Bitcoin has managed to bring a technology which provides transparency and prevent double spending, it has an inherent value provided by its users.

And that also explains why Bitcoin is a volatile cryptocurrency, because within any given day, people can either recognize it as a valuable cryptocurrency, or all the contrary. Despite this, I believe that Bitcoin will always be a valuable cryptocurrency because of its limited supply, deflationary model, and unparalleled security unlike any other cryptocurrency in existence. Therefore, Bitcoin is backed and will always be backed by its users, which is quite an advantage when compared against traditional fiat currencies. Just my opinion

Sled

hero member

Activity: 1680

Merit: 535

Bitcoin- in bullish time

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.

Nerman

full member

Activity: 364

Merit: 107

Quote from: gambitcoin53 on June 20, 2018, 11:00:28 PM

yes, bitcoin is a self sustaining platform. its source are backed by the users itself, depending on the buying and selling activities of users, there are no specific person runs it, it is a decentralized platform by peer to peer system. in terms of technicalities, that i did not know, who monitors the whole system from every transactions, i will leave it to the experts in IT. but as far as the platform itself is concern, i think we, the users are keeping bitcoin in running, because of our buying and selling activity.

I agree, Bitcoin is backed by the people and actually this is what some financial experts are baffled with, but they forgot that the value of one thing is only determined by the people price on willing to buy it. If we agree to buy super car for $10,000,000 even though the price to create it is just $100,000 then that car is worth $10,000,000. It is same with other assets like stocks and other currency.

gambitcoin53

member

Activity: 378

Merit: 25

yes, bitcoin is a self sustaining platform. its source are backed by the users itself, depending on the buying and selling activities of users, there are no specific person runs it, it is a decentralized platform by peer to peer system. in terms of technicalities, that i did not know, who monitors the whole system from every transactions, i will leave it to the experts in IT. but as far as the platform itself is concern, i think we, the users are keeping bitcoin in running, because of our buying and selling activity.

aeternus

sr. member

Activity: 686

Merit: 250

Quote from: Yakamoto on June 17, 2018, 06:27:16 PM

Quote from: aeternus on June 11, 2018, 10:24:23 PM

Quote from: Ciremik on February 12, 2018, 08:14:06 PM

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.

BitcoinMarketer39

full member

Activity: 392

Merit: 100

ADABsSsSsSsSSSsS

Quote from: Ciremik on February 12, 2018, 08:14:06 PM

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

If you are saying that bitcoins price will rise again because of the people then yes it will be depending on the investors in the market, if people will be starting to invest on cryptocurrency again then the demand will continuously and within a few months, the price might go back to normal.

Rath_

legendary

Activity: 1876

Merit: 3132

Quote from: Abiky on June 20, 2018, 02:51:38 PM

However, Bitcoin doesn't come out of thin air since there's a lot of effort and cost involved in the mining process.

That's always mentioned during the debates whether or not Bitcoin is good. A lot of economists say that mining is a process which wastes a lot of energy. Printing bills and the distribution of them needs also a lot of energy. Not to mention the banking system which needs a huge backbone. Some people say that the solution is simple - change PoW algorithm to something like PoS which doesn't need as much electricity. However, every solution has its own disadvantages.

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: Cynooza on June 17, 2018, 05:50:19 PM

Bitcoin is backed by its technology which implies fixed supply and impregnability and unchangability of the code. Also, mass trust backs bitcoin as well.

Exactly. Bitcoin is only backed by its inherent technology which provides transparency, security, and eliminates the possibility of fraud and double-spending. Since it's decentralized, there's no middleman, giving the power back to the people. As such, individuals are the ones responsible to supporting Bitcoin, and giving it value. Many say that Bitcoin comes out of thin air, and it's not backed by anything.

However, Bitcoin doesn't come out of thin air since there's a lot of effort and cost involved in the mining process. While it's not backed by something real or tangible, Bitcoin is backed by belief as it's a decentralized cryptocurrency free from manipulation. Being a trustless system, gives it a fair advantage over many centralized payment systems known in the real world. Therefore, I believe that Bitcoin will always be valuable if people backs it over the course of time. Just my opinion

batang_bitcoin

hero member

Activity: 3080

Merit: 603

Quote from: Stavri on June 18, 2018, 05:39:53 PM

bitcoin is baacked by the crypto community. Everyone trading in crypto market, everyone making posts here, everyone discussing about blockchain technology or crypto market anywhere are supporting bitcoin.

Just ignore those claims that bitcoin came from nothing, came from thin air and is being backed up by nothing.

Those people that claims bitcoin that way are just jealous about the bitcoin ecosystem and they never bought during it's early days. They only see it as an expensive nothing but if you're going to give them one then they will glad to take it, they are hypocrites.

Stavri

sr. member

Activity: 980

Merit: 276

Quote from: Ciremik on February 12, 2018, 08:14:06 PM

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 is baacked by the crypto community. Everyone trading in crypto market, everyone making posts here, everyone discussing about blockchain technology or crypto market anywhere are supporting bitcoin.

Kray

hero member

Activity: 658

Merit: 500

Quote from: sindikat on February 13, 2018, 01:49:36 PM

Quote from: Rafar8 on February 13, 2018, 07:55:03 AM

Quote from: Ciremik on February 12, 2018, 08:14:06 PM

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

If I did not name any spheres, then maybe someone else will add.

I want to add electricity to your list. First of all, the cost of cryptocurrency supports the cost of electricity needed for its production and maintenance. The bankers and the government spread many different rumors to create a negative image of cryptocurrency.

And I think the government is having difficulty to control cryptocurrency in the country, so there are some countries that have ban cryptocurrency so it will be difficult to access even though their electricity is able to access it.

XinXan

hero member

Activity: 1064

Merit: 505

Quote from: richardsNY on June 17, 2018, 06:17:53 PM

Quote from: SearchingforS on June 17, 2018, 05:58:12 PM

By it's technological uniqueness, by it's fame, by all crypto-believers all around the world. ISn't that enough?

There is no technological uniqueness anymore, the more than 5000 altcoins are the prime example of the copy and paste greed that we have gone through. I honestly even think that people are heavily distracted, where they don't seem to be able to appreciate Bitcoin for what it is. The main focus of people has been that they jump from one coin to the other based on where the market is offering the best possible potential profit opportunities. If people had a slight clue about how shitty the altcoin market is, they wouldn't mess around with them, and they would have the patience to let their wealth in Bitcoin grow in a slower but more sustainable manner....

For sure, 90% of alt coins don't even have a product or prototype and still make it to top 100. Bitcoin has a lot of developers working together and they can always fork bitcoin if needed. You can fork bitcoin a couple times and boom, bitcoin is back on top of the technology race

Yakamoto

legendary

Activity: 1218

Merit: 1007

Quote from: aeternus on June 11, 2018, 10:24:23 PM

Quote from: Ciremik on February 12, 2018, 08:14:06 PM

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.

elwiswoodie

member

Activity: 378

Merit: 16

bitcoin is backed by whales, and these whales are very influential to the existence of the existence of bitcoin
indeed this is already a public secret, every time the price rises or falls, it can not be separated from the act of the whales who have a lot of money,
they are actual price controllers

richardsNY

legendary

Activity: 1232

Merit: 1091

Quote from: SearchingforS on June 17, 2018, 05:58:12 PM

By it's technological uniqueness, by it's fame, by all crypto-believers all around the world. ISn't that enough?

There is no technological uniqueness anymore, the more than 5000 altcoins are the prime example of the copy and paste greed that we have gone through. I honestly even think that people are heavily distracted, where they don't seem to be able to appreciate Bitcoin for what it is. The main focus of people has been that they jump from one coin to the other based on where the market is offering the best possible potential profit opportunities. If people had a slight clue about how shitty the altcoin market is, they wouldn't mess around with them, and they would have the patience to let their wealth in Bitcoin grow in a slower but more sustainable manner....

charlzyeby

jr. member

Activity: 182

Merit: 4

Bitcoin is backed by safety, empowerment, transparency, speed, authority and so on. Because of these features people have come to trust bitcoin, especially the holders of bitcoin and the pioneer investors whose investments have seen amazing rise.

SearchingforS

member

Activity: 238

Merit: 10

“The Future of Security Tokens”

By it's technological uniqueness, by it's fame, by all crypto-believers all around the world. ISn't that enough?

XinXan

hero member

Activity: 1064

Merit: 505

Supply and demand. At the end of the day is anything really backed by anything? Money started existing because people needed that concept to trade. So again, supply and demand is in everything. You could argue that bitcoin is backed by miners as they are the ones who maintain the blockchain.

Cynooza

full member

Activity: 238

Merit: 100

Bitcoin is backed by its technology which implies fixed supply and impregnability and unchangability of the code. Also, mass trust backs bitcoin as well.

sublime5447

legendary

Activity: 966

Merit: 1000

Bitcoin is not supported directly (offline) by the people in this world, unlike fuel if the price goes up a demo will be held to lower its price.
Bitcoin is supported online and with the trust of every people in this world who believe in bitcoin. Because bitcoin holders believe that this digital currency can help the economy in the future.
And I also support bitcoin with my belief in bitcoin although my support only has very little effect, but if many people are same as me then the small things would be a big influence for bitcoin.

Topic: What is bitcoin backed by? - page 6. (Read 1937 times)