The Value Was Established At Less Than One Cent Per Token.
It is not backed by any sort of resource. The credibility of its monetary properties. It is not possible to exchange an ounce of gold for another ounce of gold.
Contrary To Popular Belief, Bitcoin Is In Fact Backed By Something.
Bitcoin is a global currency, which is traded person to person without any need for a bank in the middle. Like most modern currencies bitcoin is not backed by gold or other precious commodities. The answer is nothing at all, but that’s actually not a bad thing.
“Bitcoin Can’t Be Money, It Isn't Backed By Anything.” This Is An Old Way Of Thinking That Originated With Paper Money.
There are many differences between bitcoin and real money. Cryptocurrencies like bitcoin, which are backed by real money, are nevertheless attractive to certain investors. The credibility of its monetary properties.
Monetary Value, Comes From The Commodity Of Which It Is Made.
Gold, as money, is effectively backed by the work done to mine new gold. Bitcoin is considered valuable for the same reason gold is valuable; As a result, they will be more inclined to use cryptocurrencies rather than simply ignoring them.
Commodity Money Is Money Whose Usefulness As A Measuring Stick, I.e.
There is no asset backing bitcoin. Prior to paper money, people used precious metal coins (such as gold) because they maintained strong monetary properties: No one is going to be writing contracts in bitcoin anytime soon, and no court will adjudicate debts denominated in bitcoins.