What is bitcoin backed by? My favorite answers

Ceizer54

full member

Activity: 196

Merit: 100

1.Bitcoin is backed by people like us who believe in Cryptography and trust computers more then governments.
2.Bitcoin is backed by people who wants to pay less fees compared to what they pay with real money.
3.and finally by those who want to have complete control of their money and not to be controlled by the government
4.and finally thus bitcoin is backed by people...as long as people uses and invest in bitcoin,bitcoin has the value it deserves Wink

neonshium

hero member

Activity: 1134

Merit: 515

Quote from: brandken on September 30, 2015, 07:08:33 AM

Bitcoin is backed by POW. Yes, if you contribute to the netwrok you will get some bitcoins. Unlike banks and government bitcoin is not minted meaninglessly.

Yes. I agree. New Bitcoins are created for a meaningful reason on a regular interval towards a fixed cap. No other currecy is minted like that. Bitcoin has many reasons backed for it.

mordekaiser

full member

Activity: 182

Merit: 100

Quote from: BoardGameCoin on January 19, 2013, 06:39:54 PM

1) A lack of faith in central banks and their long-term control over government currencies

2) A desire to hold currency that has positive expected value when more efficient means of production are discovered.

That is all.

-bgc

A lot of people have been very supportive about bitcoin and as time goes by it it becoming more popular.

Miss Fortune

full member

Activity: 224

Merit: 100

Quote from: BoardGameCoin on January 19, 2013, 06:39:54 PM

1) A lack of faith in central banks and their long-term control over government currencies

2) A desire to hold currency that has positive expected value when more efficient means of production are discovered.

That is all.

-bgc

A lot actually, there many other merchants and investors that really believe in btc and with that
they support it to endless limits.

brandken

newbie

Activity: 7

Merit: 0

Bitcoin is backed by POW. Yes, if you contribute to the netwrok you will get some bitcoins. Unlike banks and government bitcoin is not minted meaninglessly.

n2004al

legendary

Activity: 1134

Merit: 1000

Bitcoin in backed primarily by its quality (what derives from the quality which have the technology from which it was invented) and is the peer to peer. In other words bitcoin is an currency which is the materialization of one concept which allow to exclude one third part in one communication between two sources. This is an extraordinary achievement. Then is backed by the passion, interest, curiosity and faith as a new kind of currency by the people.

BillyBones

full member

Activity: 168

Merit: 100

To the common people at this current situation, Bitcoin backed by it high value against the fiat currency, period. To the economists and business people regardless to any sectors it is a massive breakthrough for anonymity.

greBit

hero member

Activity: 714

Merit: 500

Quote from: Zorrocoin on July 12, 2015, 06:50:30 AM

Quote from: Jaw3bmasters on January 20, 2013, 12:03:15 AM

Me.

Good answer haha. It is backed by all of us. All people investing in it.

And we are backed by bitcoin back. It is the reason why I don't have trust issues anymore lol. Just saying. Bitcoin is also backed by Not being deceived by the untrustworthy banks and government.

Backception. The only thing bitcoin, gold or anything else is backed by or comprised to have value of, is belief of the amount of people. In other words, more acceptance or adoption of a certain currency or any mode of acceptance, would be the most superior. Gold has been around for a long time and people have had a log belief in it, that's why it seems to be superior. Time for change.

Kprawn

legendary

Activity: 1904

Merit: 1074

It's back by a technology that would make sure the human element is cancelled to a degree that it keeps us and governments honest enough to give it value.

It's also backed by the believe that the alternatives are failing and not changing with the needs of the majority of the people using it.

When people focus on this, they would find the unique value of using this alternative. Wink

Zorrocoin

sr. member

Activity: 336

Merit: 250

Quote from: Jaw3bmasters on January 20, 2013, 12:03:15 AM

Me.

Good answer haha. It is backed by all of us. All people investing in it.

And we are backed by bitcoin back. It is the reason why I don't have trust issues anymore lol. Just saying. Bitcoin is also backed by

Not being deceived by the untrustworthy banks and government.

minor-transgression

sr. member

Activity: 268

Merit: 256

If you understood what money is you would not ask that question.
Do You ask what is gold backed by?

The banker JP Morgan famously answered that gold is money and nothing else.
Today bitcoin is added to the list of things that are money

Do not allow yourself to be defrauded by present day bankers. They wish to
present the credits and debits they find in their T-accounts as money.
They talk about "the money supply" when they mean "the debt supply"
Some ninety-seven percent of the "money" in circulation is no more than
an obligation on someone to extinguish a debt to someone else. The
remaining three percent is money - gold, silver, bitcoin. Everything else is no
more relevant than the position of beads on an abacus.

Unfortunately, perception matters. To understand this look at this image:

http://dragon.uml.edu/psych/woman.html

Think of money as the young woman, and debt as the old woman.
They look the same but you cannot see money and debt at the same time.
When you hold money, you hold a scarce resource. When you hold debt
you are enslaved.

ammy009

sr. member

Activity: 303

Merit: 250

Bitcoin is backed time Cry

Zorrocoin

sr. member

Activity: 336

Merit: 250

Quote from: BoardGameCoin on January 19, 2013, 06:39:54 PM

1) A lack of faith in central banks and their long-term control over government currencies

2) A desire to hold currency that has positive expected value when more efficient means of production are discovered.

That is all.

-bgc

That is a really good answer indeed. Bitcoin is also backed by loads of people. I've read a lot of other good answers in this thread and it has made me understand a lot about bitcoin that I really couldn't explain to some one who was unfamiliar with this.

Mehek

full member

Activity: 154

Merit: 100

Quote from: BoardGameCoin on January 19, 2013, 06:39:54 PM

1) A lack of faith in central banks and their long-term control over government currencies

2) A desire to hold currency that has positive expected value when more efficient means of production are discovered.

That is all.

-bgc

The first one is so accurate. I just witnessed a thread about how untrustworthy the central banks are haha. Grin

Although bitcoin is backed by nothing but people. The question does have a point. It is what bitcoin is not backed by that matters though wink wink.

rayhan

sr. member

Activity: 378

Merit: 250

be your self

Bitcoin is backed by many things which the banks are not backed with. No greedy people fixing their eyes on your assets. The best thing is , no involvement of government. It is truly of the people , for the people and by the people. Then bitcoin is backed with the original maths , and potential of positive increase in value .

HarHarHar9965

hero member

Activity: 994

Merit: 1000

I loved reading the answers from this thread, it has helped me have a better understanding of bitcoin myself as well as a reference for me to use when I am helping other people around me understand the working, the built and the adaption of bitcoin at a wider perspective. I often had nothing to say when people said that bitcoin isn't real, anything which a lot of people value is as real as it can be

wlefever

legendary

Activity: 1174

Merit: 1001

Quote from: thefiniteidea on February 01, 2013, 11:38:25 AM

"What is Bitcoin backed by?"

It is backed by value.
Value is created by people, it is not intrinsic to anything except ideas (opinions).
Certain resources (gold, dollars, real estate, stocks, etc) have great monetary value in our society because we look for, or create, certain properties in them when following a particular - the most popular - economic theory at the time.
As an example, if we all started to adopt the theory of resource-based economics, widely promoted by Peter Joseph who created the Zeitgeist movie-series, we would value resources very differently.
So what makes Bitcoin valuable to people (adopters) in a capitalistic economy?
It can be a multitude of reasons:

Deflation is better than inflation
It is better to have a decentralized power
Transactions in Bitcoin are cheaper, easier in a digital world
The Blockchain: a PUBLIC record of every transaction
I hate Ben Bernanke or the Federal Reserve System
The security of Bitcoin's cryptography
Irreversible transactions
A new economy to start a bushiness in
Anonymity (if done properly)
Dude, I can buy drugs like I buy shit on Amazon... awesome
I don't know, my friend uses it and I just follow whatever they does cause I think they're cool (majority of people)
I like code
I like turtle
Miner: "Free money man!"
we can win a major battle in the arms race and gain a new territory of freedom for several years
Etc...

This is one of my favorite posts about what's backing Bitcoin. When I am explaining Bitcoin to people / coworkers their first response is "so it's not real". It is real in the sense that it has value, just like anything else we apply a value to! BTC

benjamindees

legendary

Activity: 1330

Merit: 1000

Quote from: mestar on February 01, 2013, 07:04:09 PM

You said that point can't ever be reached. I say it can be reached tomorrow.

I said it won't be reached. It could be reached tomorrow. The important thing is that it can't be reached 30 years from now.

xxjs

sr. member

Activity: 280

Merit: 250

Quote from: thoughtfan on February 01, 2013, 07:12:35 PM

Quote from: herzmeister on February 01, 2013, 07:09:00 PM

Quote from: Fuzzy on February 01, 2013, 06:03:15 PM

It's not what Bitcoin IS backed by that makes it great, but rather what it ISN'T backed by Wink

Don't ask what Bitcoin can back for you. Ask how you can back Bitcoin. Grin

+1 LOL

You can inflate all the currencies some of the time, and you can inflate some currencies all the time, but you cannot inflate all the currencies all the time.

Walter Rothbard

sr. member

Activity: 476

Merit: 250

Bytecoin: 8VofSsbQvTd8YwAcxiCcxrqZ9MnGPjaAQm

Quote from: herzmeister on February 01, 2013, 07:09:00 PM

Quote from: Fuzzy on February 01, 2013, 06:03:15 PM

It's not what Bitcoin IS backed by that makes it great, but rather what it ISN'T backed by Wink

Don't ask what Bitcoin can back for you. Ask how you can back Bitcoin. Grin

Don't ask what Bitcoin can do for you. Ask what you can do to make my Bitcoins more valuable. Cheesy

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