What is bitcoin backed by? - page 7.

Abiky

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Quote from: EnricoGomez on June 12, 2018, 12:34:54 AM

Yeah, I agree that the most important part of the existence of bitcoin is the people using it primarily and obviously.
Bitcoin would literally have no value if no one uses it, there will be no concept of demand/supply of it basically. So we can say that popularity of it is a very critical as it would increase its value, they go hand-in-hand as increasing value also attracts investors.

Exactly. Bitcoin's value is only determined by its usage and adoption in the real world. It's just a mere combination of ones-and-zeros with absolutely no value at all, since it's not backed by anything real. However, given that Bitcoin's blockchain is the most secure to date, its transactions are immutable, and its supply is finite, it's no wonder why it has value. The creator of Bitcoin designed it as such, to be a deflationary currency, unlike many real-world currencies we know and love today. Because of this, the future value of Bitcoin is in people's hands. No central authority means there's no single entity that's responsible of giving value to the cryptocurrency. As such, Bitcoin is a cryptocurrency by the people, for the people in this world full of corruption and fraud.

Only time will tell what Bitcoin's value will be in a few years from now. Just my opinion

talenah kotang

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Bitcoin is supported by demand, where such demand can raise bitcoin prices .. the technology given bitcoin is very popular in today's digital age.

anntlevel

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Quote from: Kambala07 on June 09, 2018, 01:08:18 PM

I'm sure Bitcoin is backed by USD. People buy bitcoin using usd and by that time the number of people who believe bitcoin can be used in the future increases the price also increases rapidly. Many people think that investing in bitcoin is stupid because it is dangerous and bubbles. I think they are just afraid of change and they do not open their mind to something new. I believe somehow blockchain technology will be used in many aspects of our lives so that's why I believe bitcoins and other cryptocurrencies could have a future.

Well I think bitcoin is dealt in dollars just for the reason that dollars are now being used over the world. There is no currency working concurrently in different countries rather than dollars. So that is solely reason for this favor from dollars to bitcoin. And for later years, if some other country would become super power, that currency would be dealt and backed by bitcoin.

EnricoGomez

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Yeah, I agree that the most important part of the existence of bitcoin is the people using it primarily and obviously.
Bitcoin would literally have no value if no one uses it, there will be no concept of demand/supply of it basically. So we can say that popularity of it is a very critical as it would increase its value, they go hand-in-hand as increasing value also attracts investors.

speedy963

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Quote from: aeternus on June 11, 2018, 09:24:23 PM

Quote from: Ciremik on February 12, 2018, 07:14:06 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.

Well certainly i agree. It is like tracing the ancient history of something that nobody could really tell where it came from exactly. One of the most foundation of currencies is trust, without it, people wont acknowledge it, and even they wouldn't use it as well. Because of earning our trust, it made it out publicly and even spread it widely because there are also testimonies by users itself.

lehuong

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Bitcoins are supported by blockchai technology and the creators created this coin. It is always researched and marketed so many people know the bitcoin world.

aeternus

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Quote from: Ciremik on February 12, 2018, 07:14:06 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.

automaticmoney

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Bitcoin is backed by technology mathematical formula and open source technology more importantly the backbone of bitcoin is blockchain

merrillolive

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Quote from: PrudnikovLS on June 11, 2018, 02:11:15 PM

Yes it is. Bitcoin is a crypto currency created for the people, therefore people support the bitcoin course, thus being its asset. Bitcoin will exist as long as there is humanity.

Supporting BTC may be one of the ways you say that they are now being taught and taught by so many people, so BTC may be born to serve humanity and they will grow stronger in the future. hybrid.

magneto

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What is gold backed by?

It's not something that can be used in industry that much at all. Industrial demand for gold is pretty much nonexistent when you compare it to people using it for investment and storing value. Yet, people perceive gold as value itself sometimes.

If bitcoin or gold were controlled by a central bank, it would not be valuable at all intrinsically. Bitcoin is valuable because it's not manipulated by any central organisation or entity, including a central bank.

The fact that bitcoin is the agreed protocol on which people transact and store value, and that it can't just be depreciated by printing more of it, means that it's valuable. It doesn't need to be backed by anything, just like gold.

kisscoin

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Yes! Let's make history and deprive that little bunch of people that represents the world domination of the right to it! Cryptocurrencies can change the financial situation of ordinary people with you! You only need to believe! Wink

PrudnikovLS

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Yes it is. Bitcoin is a crypto currency created for the people, therefore people support the bitcoin course, thus being its asset. Bitcoin will exist as long as there is humanity.

mackenzied

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Quote from: spartak-sbk on April 28, 2018, 11:58:32 AM

In fact, it seems to me that bitcoin is supported by people, by the energy of confident people, by the time of many people and by the fact of decentralization.

The value of bitcoin can be a good example of human trust. Unlike the miracles in films, but here, trust constitutes the great value of bitcoin throughout its development.

speem28

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Well for me, I consider bitcoin is backed by the blockchain because if there is no blockchain, then transactions will not go through the intended user or receiver. The idea behind cryptocurrencies would be pointless if the transactions will go through banks or any third party entities like the government where they can track each one of them.

Abiky

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Quote from: Kambala07 on June 09, 2018, 01:08:18 PM

I'm sure Bitcoin is backed by USD. People buy bitcoin using usd and by that time the number of people who believe bitcoin can be used in the future increases the price also increases rapidly. Many people think that investing in bitcoin is stupid because it is dangerous and bubbles. I think they are just afraid of change and they do not open their mind to something new. I believe somehow blockchain technology will be used in many aspects of our lives so that's why I believe bitcoins and other cryptocurrencies could have a future.

That's certainly true, mate. Bitcoin is backed not only by the USD, but also the EUR, RUB, and CNY. The people who use the cryptocurrency are the ones responsible for giving value to it (in contrast to a central authority like the US Federal Reserve). Because Bitcoin is decentralized, and is mostly a speculative cryptocurrency, it is extremely volatile causing abnormal price changes in a blink of an eye. Individuals who're new to Bitcoin would frustrate themselves the moment they see a massive decline in price.

However, they're unware of the future of Bitcoin and other cryptocurrencies as primary payment systems in the mainstream world. Given that there's a huge interest in blockchain technology among banks, governments, and even companies worldwide, Bitcoin's value will certainly increase over the long term. Therefore, it all depends on the value the people want to give to Bitcoin as a currency. Just my thoughts Grin

Kambala07

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I'm sure Bitcoin is backed by USD. People buy bitcoin using usd and by that time the number of people who believe bitcoin can be used in the future increases the price also increases rapidly. Many people think that investing in bitcoin is stupid because it is dangerous and bubbles. I think they are just afraid of change and they do not open their mind to something new. I believe somehow blockchain technology will be used in many aspects of our lives so that's why I believe bitcoins and other cryptocurrencies could have a future.

Abiky

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Quote from: timerland on May 03, 2018, 02:22:47 AM

Lots of people make the argument that bitcoin isn't backed by anything, therefore it's worthless. That is simply not true. Assuming if that is true, then it would essentially mean that gold should be worthless, as gold itself doesn't have a lot of industrial usages, definitely not enough for it to be this valuable, and therefore, should be worthless. Simply not true, completely false.

Bitcoin isn't representative money. It doesn't represent a promise to pay a certain amount of commodities. Only representative currency is backed by something.

That doesn't mean that BTC is not intrinsically valuable. It is, being the first crypto with the most amount of adopters. And the fact that it is decentralized mean that people know it's going to hold its value in the long run, and the fact that it is the most trusted cryptocurrency with the properties that it has in scarcity, trustlessness, and decentralization, are what makes it valuable instrinsically.

Exactly. The fact that Bitcoin is decentralized, and it's the most resilient cryptocurrency available today, means that it will always be a valuable currency/asset for others to enjoy. What really gives Bitcoin its value is not a central bank or institution, but rather the people supporting it. Since Bitcoin has a rare or limited supply of 21 million coins in existence, it's somewhat compared to Gold. On the other hand, Gold is also extremely valuable because it's a rare asset/commodity and people back it. Of course, at any moment, Bitcoin's value could drop to zero when people stop using it. But, I believe that would never be the case as Bitcoin is extremely useful, especially when it's considered as the reserve currency of many altcoins we know and love today.

Therefore, Bitcoin is backed by the blockchain and the people that support it. The verifiable source of truth (which is the public ledger underpinning Bitcoin) prevents fraud, and double spending, allowing the pioneer cryptocurrency to retain its value for years to come. Just my opinion

squog

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It is still backed by fiat money actualy. It's price is greatly determined by the supply in the market among other things. People out value in it. If one sells it at a higher price, then everyone will do the same and vice versa. It really depends on how much people are willin to pay to have it.

timerland

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Lots of people make the argument that bitcoin isn't backed by anything, therefore it's worthless. That is simply not true. Assuming if that is true, then it would essentially mean that gold should be worthless, as gold itself doesn't have a lot of industrial usages, definitely not enough for it to be this valuable, and therefore, should be worthless. Simply not true, completely false.

Bitcoin isn't representative money. It doesn't represent a promise to pay a certain amount of commodities. Only representative currency is backed by something.

That doesn't mean that BTC is not intrinsically valuable. It is, being the first crypto with the most amount of adopters. And the fact that it is decentralized mean that people know it's going to hold its value in the long run, and the fact that it is the most trusted cryptocurrency with the properties that it has in scarcity, trustlessness, and decentralization, are what makes it valuable instrinsically.

omonuyak

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The greatest need of humanity is trust our society have had a very hard time to create trust on a ssystem by bring third party into human transactions and that makes batter system more help to humanity than the current system we have. Bitcoin been a decentralized and p2p system is back-up by our trust. We all believe on this systems and that is the trust we need.

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