What Is Bitcoin Backed By

In recent times, what is bitcoinbacked by has become increasingly relevant in various contexts. Help answer my Dad: What backs Bitcoin? : r/Bitcoin - Reddit. Bitcoin is backed by the energy expended to secure the network, it has value because it is an uncensorable, unconfiscatable, decentralised money that can be sent across time and space with no trusted third party Next time someone tells you bitcoin is backed by nothing... Bitcoin shares all these properties, so just like gold it is already hard money and doesn't need to be backed.

It is the thing paper currencies (which are not inherently scarce) ought to be backed by. Bitcoin is NOT backed by energy, or code, or by anything else ... Bitcoin is not backed by anything, and that is completely fine, it doesn't need to be.

"Backing" is a way to provide IOUs and debt currencies with a certain level of safety and security, to the people who hold them. Bitcoin is not an IOU, it is a bearer asset. This perspective suggests that, if you have a Bitcoin or an ounce of gold, you holding it is not a liability to ...

How to understand what bitcoin is "backed by". Equally important, bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. Bitcoin backed loan to recommend? This perspective suggests that, what is Bitcoin backed by?

Asking what Bitcoin is backed by is akin to asking what the kilometer is backed by. As much as there is utility for having standardised units by which we measure distance, the same goes for units that measure value. What is the answer to the argument that bitcoin is backed by nothing .... This perspective suggests that, bitcoin is backed by the immense energy it takes to mine it.

Building on this, just like gold it requires a significant investment to but unlike gold it's amount is permanently fixed. r/Bitcoin on Reddit: Does anyone borrow $ against their BTC? Hal Finney: "...there is a very good reason for Bitcoin-backed ... Furthermore, actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain.

If Bitcoin is backed by "pure energy", why does it waste so ... Bitcoin backed by "computing power" is only worth something if I could trade in the Bitcoin in exchange for computing power. But that isn't the case, the computing power has already been consumed.