As mentioned, cryptocurrencies can be backed by a variety of things. But cryptocurrencies actually are backed by something. To elaborate more on bitcoin, that asset is backed by the mathematics that power the underlying blockchain technology.
The Idea Of Virtual Currency Backed By Bullion Like Gold And Silver Has Been Tried Numerous Times.
Bitcoin is backed by dlt (distributed ledger technology), also known as the blockchain, which consists of the proof of every transaction that is carried out on the network. Scarcity, durability, divisibility, portability, fungibility, and acceptability. This state of affairs is alarming, but there are also pluses to it.
In Conclusion, Though Bitcoin Is Not Backed By Gold Or Silver, It’s No Different From Other Fiat Currencies.
Crypto is not backed by anything! “bitcoin can’t be money, it isn't backed by anything.” this is an old way of thinking that originated with paper money. Bitcoin isn’t backed by anything, it has inherent monetary properties which are enabled by the entire ecosystem of resources, capital, and labor that created it.
It’s A View That Has Been Perpetuated By Us President Donald Trump As Well As Billionaire Tycoon Warren Buffett —Both Of Whom Have Been Quoted Denying That Bitcoin Has Any Value.
‘how could any crypto be worth anything? Dogecoin is actually superior to bitcoin, ethereum, and litecoin in several ways. It is up to you whether you want to believe it, or not.
It, Like All Other Currencies, Is Backed By The Widespread Belief That It Has Value.
Historically speaking, up until august 15 th 1971 most currencies were backed by a commodity, usually gold or silver. They all have absolutely nothing backing them up. There’s no governing body to ensure that these stable cryptos buy gold or silver to issue more coins.