Bitcoin Forum

bitcoin is mean't to be fiat independent. Why is its price/value backed by dollar, instead of the gold-standard.
In reality, we're still under the tight grips of central banks, United States, and the dollar!

This is a large issue which needs to be fixed, internally within our community and externally ...



 

Bitcoin isn't backed by anything but a group of miners, a network of nodes and a faithful cultish following ;) 

Since dollar is the currency widely accepted,bitcoin prices are usually quoted against dollar for this reason.Bitcoin is independent of any fiat or cryptocurruncy.It exist on its own

It's not "backed" by the USD, anymore than gold/silver/any commodity is. Just because USD/BTC rate is most commonly used to track Bitcoin value, it doesn't mean that Bitcoin is dependent on USD. You can use any other currency exchange rate (just like CNY/BTC is probably more popular in China) if that makes you happy.

What makes you think its backed by the us dollar? its got nothing to do with the us dollar, if its backed by the us dollar then its also backed by cny,gbp and every other currency around since its used worldwide and people cash out into all kinds of currencys. I can tell you now that ive never bought or sold bitcoin for usd and never will.

Bitcoin at one stage was backed by nothing, people literally used to trade thousands of them for just a couple of pizzas yet alone making silk road users ultra rich when a really low price came into play compared to today's average price.

Users used to sell an ounce of green for 100 Bitcoins :o that's almost $100,000 at bitcoins peak.

here's a newsflash for ya - gold is priced in dollars too. anything is gonna be priced in the most commonly used currency, no matter how shitty it is. that's the only practical way to measure anything.

Bitcoin (value) is still backed by nothing. Just like the value of any major fiat currencies.

That is indeed very true, Fiats just put its trust in someone saying "OK this is how much our Dollar will be worth " lol

You really think we should back Bitcoin with gold? Most of the so-called gold on the books, do not even exist. It's just a entry in a digital ledger.  ::) The last verifiable audit of gold has been done many years ago,

and if you ask the federal reserve to show you your gold, they would show you the door. I would much rather have Bitcoin backed by Bitcoin and no currency and commodity that can be faked and manipulated

by any government. How is that for a suggestion?

But you can buy gold yourself and have it in your hands, why give it to a bank ? I know that once money goes into my bank everything that is in there comes out & is stored physically to spend on various things including bitcoins so atleast I know it's there, when banks go down I don't ever have to worry :D

Its not backed by the dollar. Its traded using the dollar. There's no practical way of trading Bitcoin without using the dollar. Sure, you can use goods and services, but it just isn't something everyone can use. There's no "fixing it" either. Its how currecny and money works.

Can you buy gold with USD? yes, can you buy everything with USD? yes, so why not?
it is still the gold but only in printed paper, and that doesn't make bitcoin any lesser.

it's not controlled by the dollar. it's just a form of measurment ;)

I dont think it is backed by USD, it just happened that its always compared to USD in tsrms of its value that how I look at it but if USD drops I dont think BTC will drop like it is backed by it.

It seems you do not understand the Financial System... ::)

Controlled by dollar? i think its not the price of bitcoin is depends in deman and supply its not controlled by usd..
Dont relay in usd just relay how much people are buying bitcoin and how much our supply in total..

bitcoin is digital curency , same but not equal paypal perfectmoney okpay and etc(is fiat curency), bitcoin can't controll dollar, can control price bitcoin pair dollar is community bitcoin is not bitcoin controll price dollar

Just no making a shitty post, don't get out from the reality,in fact, bitcoin dollar gives a big role for bitcoin, the dollar becomes the main stand of bitcoin. the people can appreciate bitcoin because they have a value in the dollar, we know the dollar influence a lot of another fiat currency in the world. but why bitcoin taking a dollar become their stand currency and not another fiat currency?

The dollar doesn't back Bitcoin!
You could say the same about gbp, euro and cryptocurrencies:
Dollar - preev.com/btc/usd
GBP - preev.com/btc/gbp
Euro - preev.com/btc/eur
Dogecoin - preev.com/btc/xdg

The bitcoin is controlled by the dollar because its depending on its market, if the dollar will fall the bitcoin also will fall without any doubts.
I think its fully depending on fiat and that is the problem right now in my eyes to be honest.

As what I've understand to your post, USD is the currency stand for bitcoin. Because like in language English is the majn language of the world ro make other people understand. And with this matter USD was made which is the standard or the default currency to trade, change, based with many other currencies value.

In fact, the bitcoin relies on the dollar. in the reality, bticoin is always reliable with the dollar to getting their value. because the dollar having a big impact for another fiat currency and if bitcoin having a big value in dollar maybe it's will make a domination for another fiat too.

Bitcoin is not controlled by ollar or any other currency, but we do find its value in dollar because everyone who have there own currency want to know that how much is the value of bitcoin in respect to their own currency so then they compare it with their.

we use dollar most because it is widely used currency of the world.

At least when it is traded, it has to be quoted against fiat. Nobody is going to pay actual gold to buy bitcoins, so it doesn't make sense to quote it in terms of gold. You can quote it against a McD burger or iPhone, if you really want to.  ;D

I agree with most everyone here but there are a couple good points this discussion brings to light.

For most of us, Bitcoin is priced in (not backed by) USD... just like oil and gold are priced in USD for much of the world (China and Russia are changing this).  But Bitcoin is used worldwide, and we're free to value it against whatever currency or commodity we'd like.  That's part of the beauty of it, Bitcoin is a means of barter and it only takes two people to decide "how much" and "of what".  When the dollar loses strength (aka, becomes less desirable), people will naturally want more USD for each BTC, or they may decide they don't want USD at all and start trading BTC for something else.

The flip side is that Bitcoin is not backed by anything physical, but it is backed by the support and efforts of a fantastic community and definitely has better fundamentals than any fiat currency.

BTCitcoin is backed by trust of very strong believers, US $ is just measurement of price but all people don't see price into that some are trading into their local currencies, US $ is an international currency that is why a lot of people use it for trading.

Well you are right in saying that it is not backed up by gold, it remains a fact that bitcoin as a cryptocurrency is not yet an official legal tender but fiat currency or paper money is. But later when society and its financial environment is ready to take on the preparations the it will pave the way for bitcoin to become the official legal tender. In order for this to come true we need the government to make a move.

All assets need value and all of them are compared with fiat like USD, EUR, JPY etc even gold is traded in these pairs. And you are wrong in sense of bitcoin controlled by dollar, it is not traded only in dollar pair you can see btc-eur, btc-jpy trading pair also and bitcoin is not backed by dollar as you have stated.

Yeah sishendaoye is right,it is like altcoins.
If bitcoins price rises,usually drops the price of altcoins,and all that is simply reversed.
it is the same link as btc-usd.

I don't think bitcoin is getting controlled by dollar. If it's so, it gets out when direct bitcoin usage increases than using after converting to fiat. Possibly till now its controlled by most miners of China.

yeah,about 40% of bitcoin is being mined in china.
But if you dont believe that dollar is heavily linked to bitcoin,just check the both chart's and you will see it buddy.

I agree with that. Btc is backed by a belief in it, not by $, Euro, Gold or anything. And this is the way it should be. This is the idea of BTC. Not to be as non-cryptocurrencies backed up by something material

this is right,maybe becaue there's no organization behind bitcoin which could organize the gold as value of bitcoin,in local exchanger around the world they use their own local currency but still based on price in dollars of few largest exchangers and i find it really silly why we count on dollars instead of gold which could possibly stabilize bitcoin's price

Why?Because the USD is the most popular currency in the world.That`s why.

People can`t just stop using it.If the gold standard returns, the world inflation will disappear and

the economical growth will increase.Central bankers don`t want this ....

your both wrong, If the dollar dropped by 50 percent it wouldnt affect bitcoin at all. Why would it? the only tie that bitcoin has with the dollar is that a lot of people compare the price to the us dollar so if the dollar dropped then bitcoin would be stronger against it. The only reason i say the price of bitcoin in dollars on this forum is because most of the users are american but its a pain in the arse for me because whenever i check the price of bitcoin on any exchanges i use or on google i check it in my local currency.

Bitcoin can never be independent from fiat. It can't be. You need one currency to compare its purchasing power parity.

SInce USD is one of the most strong currencies, we have picked it up to compare its purchasing power.

At the end of the day, you need to convert it to a fiat currency to get the benefit of it. So people have chosen USD.

i dont think so. do you mean that the price of bitcoin is up and down due to dollar. i think its not so. bitcoin is not under the influence of any other currency . it is independent and you can convert it in to so many other currencies.

as i know bitcoin is independent and not controlled by fiat currency ,  same applies to USD also, since internationally more people use USD as conversion currency from BTC to USD , mainly it does not fluctuates based on currency but fluctuates based on demand of BTC buying and selling :)

Bitcoin isn't controlled by dollar, simply it's used worldwide. You can buy bitcoin with gbp, euro and almost every country's currency, so will you say the same about them?

Bitcoin is  not controlled by dollar, the same thing with other currency, it's that USD is recognized  internationally and almost all currency exchange is based in USD value.  As a matter of fact even i f USD depreciate, Bitcoin price doess not goes with USD being depreciated. Same goes when Bitcoin Value appreciate.

i guess dollar is just currency exchange for bitcoin if we wanna exchange it, but the dollar can not control bitcoin. sometime if every one in the world use bitcoin as payment method fiat money will become nothing.

Nope that's not true bitcoin is currency by it self it not depends in other currency it's exchanges price what we will see, not just only dollar every other currency exchanges had there own exchange to bitcoin.

It is not correct to say that Bitcoin is "controlled by" dollar. A currency being "controlled" means that it is pegged to something else via a central party at a certain exchange rate yet you cannot exchange bitcoins for the computing power that was used to create them. Bitcoin is in this sense not controlled by anything. It is a currency in its own right. Just as gold is not controlled by anything, the same applies to Bitcoin.

The Bitcoin currency is created via processing power, and the integrity of the blockchain is protected by the existence of a network of powerful computing nodes from certain attacks

Bitcoin is anti-inflationary and is designed to be a store of value. It cannot be inflated to destroy its future value to pay for debt. It is not debt-based, not controlled by usd, nor government controlled, it is governed by mathematic algorithms.

Yes bitcoin is independent, if it was controlled by the govt. or usd, you had to pay taxes for every bill you pay. This is people's money.

Bitcoin isn't in any way backed by dollar or in any tight grips of central banks and especially not under United States.
Bitcoin's value is only often compared in us dollar, but in fact it is also compared in all the local currencies of their own respective countries/regions.