What is bitcoin backed by? - page 9.

Abiky

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Quote from: squatz1 on April 23, 2018, 11:44:44 AM

While there is a lot of FUD surrounding bitcoin, the big thing that it is backed by is the blockchain and the code. Bitcoins code has been unable to be cracked yet, you can't crack into bitcoin based on no one being able to do it yet. That's not to say it's impossible, but as of right now we haven't hit the point where anyone has.

The blockchain confirms all transactions and the miners confirm all the transactions by confirming that all of the transcations are real and are not frauds.

Completely agree with you, mate. Bitcoin is backed by blockchain technology and the people that support it. Since it's a purely speculative asset, people determine what its value would be in the long term. With blockchain technology, fraud and double spending problems are no longer a real threat when compared against traditional fiat currencies. As such, Bitcoin's strongest point is the public ledger which is transparent and anyone can verify, allowing for greater security and reliability.

Many say that Bitcoin is not backed by anything, but it is all the contrary as real-world resources become spent to help preserve it for years to come. Every day, lots of individuals, businesses, and corporations join Bitcoin to help it become a mainstream digital asset. Therefore, Bitcoin is and will always be backed by people, and its underlying revolutionary technology which is highly safe and efficient (when compared against traditional centralized monetary systems). Just my thoughts. Grin

rizkyhiw

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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

There are a number of factors that influence the price of Bitcoin over time:
- Demand and Supply on the market.
Actually physical market and digital market always influenced by the basic law of Supply and Demand (Supply and Demand). If the offer is more than the demand, then the price will fall. Vice versa.
- Total Bitcoin and Holder.
The total maximum amount of Bitcoin is 21 million, although it is in production gradually. Currently, there are about 16 million BTC and more than 14 million people have wallets with BTC. Because the amount of Bitcoin remains, but people who want to have more and more, then the price will continue to increase.
- News
Lots of news that could affect the human factor (market sentiment) in the cryptocurrency market. For example, the news about the capture of Ross Ulbricht, the operator of Silk Road site that uses Bitcoin a lot, makes the price of Bitcoin down. etc.

rafaelyarulin

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Of course real money. People enter their dollars/rubles/EURO and buy Bitcoins on them, there is a reinforcement of coins directly with money, which in turn is backed by the real sector, where they are earned for goods and services. The growing turnover of "living money" inevitably supports and increases the value of Bitcoin.

krishnaverma

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Quote from: Zapto25 on April 23, 2018, 10:04:15 AM

Quote from: sri11 on April 23, 2018, 08:47:19 AM

bitcoin is supported by people who like bitcoin, if bitcoin does not support it maybe bitcoin will die and not worth it, investor support, shareholder is so necessary that bitcoin will not die forever

yes public trust including bitcoin supporters is one of the causes of bitcoin persistence in the market. how can bitcoin survive if there is no support .. Huh

That public support is possible only when the product or service has got some merits. I mean one can create some hype and get initial promotion with money but this cannot be faked for long. Bitcoin is going strong for last 8 years and this is possible only because of its continuous rising prices that benefited a lot of people.

squatz1

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While there is a lot of FUD surrounding bitcoin, the big thing that it is backed by is the blockchain and the code. Bitcoins code has been unable to be cracked yet, you can't crack into bitcoin based on no one being able to do it yet. That's not to say it's impossible, but as of right now we haven't hit the point where anyone has.

The blockchain confirms all transactions and the miners confirm all the transactions by confirming that all of the transcations are real and are not frauds.

Zapto25

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Quote from: sri11 on April 23, 2018, 08:47:19 AM

bitcoin is supported by people who like bitcoin, if bitcoin does not support it maybe bitcoin will die and not worth it, investor support, shareholder is so necessary that bitcoin will not die forever

yes public trust including bitcoin supporters is one of the causes of bitcoin persistence in the market. how can bitcoin survive if there is no support .. Huh

13abyknight

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Bitcoin is mainly backed by masterful technology called the 'blockchain' which is completely foolproof by code. Being the brainchild of an extraordinary visionary in Satoshi Nakamoto, it resembles the flagship of current technology. This is mighty enough to sustain Bitcoin usage for many decades to come without any sort of lapses in security.

esa2782

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bitcoin is an antithesis of a banking system, it does not come suddenly in one day, after technology is available and people begin to question the reality of our economic system with the banking system as a core, so it is correct to say that bitcoin backed by people, but i think it is more of Hegelian than just a technology, it is just a chain reaction, thesis synthesis and antithesis, or like we call it, blockchain.

Cynooza

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Basically, it is backed by the code (which is mostly impregnable), people's trust in it and the fact of decentralization.

vaughn125

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Quote from: FullMooon on April 23, 2018, 08:36:34 AM

They once believed that bitcoin is backed by nothing, but I guess bitcoins are backed by those people whor are currently fund of doing them. Those who are really interested in doing so and are sure of practicing it.

You can say so, yes. I believe in the same thing also despite all the statements that says otherwise towards this belief of us Crypto currency lovers. And even though some of these negative comments on bitcoins that a lot of people says sometimes makes sense, if you truly are a believer and an investor of this coin, you will ignore them because you know to yourself what really is right(considering that you really did your own research about bitcoins or the crypto world). Some people just cannot accept their mistakes even when they know they were wrong just because of their prides. That's just how people are.

sri11

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bitcoin is supported by people who like bitcoin, if bitcoin does not support it maybe bitcoin will die and not worth it, investor support, shareholder is so necessary that bitcoin will not die forever

FullMooon

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They once believed that bitcoin is backed by nothing, but I guess bitcoins are backed by those people whor are currently fund of doing them. Those who are really interested in doing so and are sure of practicing it.

odolvlobo

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One problem with writing that "X is backed by Y", is that there are many meanings for "backed by". Without stating what you mean by "backed by", this discussion will go nowhere.

just_Alice

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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

In the meaning of centralization and price control it isn't backed by a particular person or a group of people, that's what others believe in. That what you are talking about is the thing that makes Bitcoin popular and demanded, which makes up the price.

odolvlobo

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Quote from: Imfinnabeon on February 13, 2018, 01:14:38 PM

... the POW system and the miners are what create the coins and give us basis for a price point. Without that system in place we wouldn't have originating prices. ...

How do you explain proof-of-stake coins having a price greater than 0?

jimbo2000

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The simplicity of the way economics works is that nothing is backed by anything. Everything has a price that is determined by market forces, supply and demand. Bitcoin's price goes up and down because peoples perception of its value changes. This is true to everything in the world.

Mometaskers

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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

Fiat is backed by nothing but the State's threat of violence for it has reserved the right to print money for itself. And since it can print as much as it see fit, it may not even reflect the reality on the ground (insert image of American president accusing China of devaluing the yuan to keep exports cheap).

Bitcoin is backed by trust but many people still consider that as nothing. They probably feel uncomfortable having the value of their money dependent on the whim of strangers.

Imfinnabeon

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Quote from: Outlaw79 on February 13, 2018, 08:06:15 AM

Bitcoin is backed by people, energy and time.

Spot on. We do some of the backing yes, but the POW system and the miners are what create the coins and give us basis for a price point. Without that system in place we wouldn't have originating prices. All 5 aspects of Bitcoin are needed to derive a price and the security it needs so we in turn can have faith in backing it.

sindikat

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Quote from: Rafar8 on February 13, 2018, 06:55:03 AM

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

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.

BitcoinPanther

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OP just nailed it,there is nothing backing Bitcoin in terms of tangible things, but in terms of intangible stuff, it has lots. The belief of the people, the idea it wanted to convey, I believe it is the demand of people and wants to get out of the traditional banking system that backs it. Being decentralized and no one governing it, it is backed by peoples trust on the bitcoin system that it will end the tyranny of centralized financial institution. That I think backed bitcoin.

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