What's Bitcoin backed by? Asking what Bitcoin is backed by is akin to asking what the kilometer is backed by. As a lot as there's utility for having standardised items by which we measure distance, the identical goes for items that measure worth.
People have allowed despotic governments to impose dictatorships over cash. The closest factor we needed to cash was gold.
Gold’s utility as a financial instrument derives from its shortage. The arrogance that we are able to’t simply inflate the inventory of gold is why gold was helpful for speaking worth. In the identical manner that it’s laborious to plan a street journey if the unit of distance fluctuated, the financial system can not make sound enterprise selections if cash was unpredictable.
Bitcoin is the primary metric unit for speaking worth – amongst different options, Bitcoin is backed by its confidence in financial coverage.
This won't occur in a single day. It'll take a number of generations. When the unproven advantages of fixing monetary programs outweigh its huge prices, the items fall into place. My eyes are on Venezuela