Answers to what is Bitcoin backed by? Give your answers

[Deeyoh]

It's backed by a Network Effect shared value.  I like the phone analogy.  

If you were the only person with a cell phone, would it have value?  No of course not.

Now give another person a cell phone and boom you now much greater value N Squared.  The more people that have them, it has much greater value until like today.. it's a necessity.

Look up Metcalfe's Law.  It devised a metric to be used to describe different network values.


Edit..Wanted to add, you can personally see this effect and calculate it yourself by just looking at the # of new address creations.   It's a round about way but you can judge the velocity of value growth.