What is bitcoin backed by?

[Abiky]

Bitcoin is backed by its technology which implies fixed supply and impregnability and unchangability of the code. Also, mass trust backs bitcoin as well.

Exactly. Bitcoin is only backed by its inherent technology which provides transparency, security, and eliminates the possibility of fraud and double-spending. Since it's decentralized, there's no middleman, giving the power back to the people. As such, individuals are the ones responsible to supporting Bitcoin, and giving it value. Many say that Bitcoin comes out of thin air, and it's not backed by anything.

However, Bitcoin doesn't come out of thin air since there's a lot of effort and cost involved in the mining process. While it's not backed by something real or tangible, Bitcoin is backed by belief as it's a decentralized cryptocurrency free from manipulation. Being a trustless system, gives it a fair advantage over many centralized payment systems known in the real world. Therefore, I believe that Bitcoin will always be valuable if people backs it over the course of time. Just my opinion

[Rath_]

However, Bitcoin doesn't come out of thin air since there's a lot of effort and cost involved in the mining process.

That's always mentioned during the debates whether or not Bitcoin is good. A lot of economists say that mining is a process which wastes a lot of energy. Printing bills and the distribution of them needs also a lot of energy. Not to mention the banking system which needs a huge backbone. Some people say that the solution is simple - change PoW algorithm to something like PoS which doesn't need as much electricity. However, every solution has its own disadvantages.

[BitcoinMarketer39]

People believe bitcoin is backed by nothing. I think that is not the truth. I believe bitcoin is actually backed by people themselves. It is backed by none other than just you. We all witnessed the price has been fluctuating by all those FUDs and bad news. The price changes by emotion and non logical facts. I believe you hold bitcoin no matter what happened and would happen, and believe it is backed by all of us, it would make a history.  

If you are saying that bitcoins price will rise again because of the people then yes it will be depending on the investors in the market, if people will be starting to invest on cryptocurrency again then the demand will continuously and within a few months, the price might go back to normal.

[aeternus]

People believe bitcoin is backed by nothing. I think that is not the truth. I believe bitcoin is actually backed by people themselves. It is backed by none other than just you. We all witnessed the price has been fluctuating by all those FUDs and bad news. The price changes by emotion and non logical facts. I believe you hold bitcoin no matter what happened and would happen, and believe it is backed by all of us, it would make a history. 

No currency is backed by anything, even if a currency was backed by gold you need to ask what backs that gold? And the answer to that is simple, nothing backs gold except the trust people have put in it for thousands of years, bitcoin is the same, we trust in it because it is an incredible concept which has been accurately described as digital gold with the huge advantages that brings.

You know that there are uses for gold, right? There's a bunch of industrial, medicinal and aesthetic uses for gold, something that Bitcoin can't really boast. It's not just misplaced interest and trust in something that has no value. There's a ton of significant uses and it is a relatively finite resource that can be used in weapons and all kinds of other fun uses which will burn through the supply we do have. Bitcoin can't really say the same for any sort of uses.

Those uses were of gold as a commodity, gold was such a good commodity that it began to be used as a way to barter more effectively but it was not until coinage was invented that it became money but as money gold is not backed by anything those uses are really not enough to justify its huge price, what justifies the huge price of gold is the trust people have in it as money.

[gambitcoin53]

yes, bitcoin is a self sustaining platform. its source are backed by the users itself, depending on the buying and selling activities of users, there are no specific person runs it, it is a decentralized platform by peer to peer system. in terms of technicalities, that i did not know, who monitors the whole system from every transactions, i will leave it to the experts in IT. but as far as the platform itself is concern, i think we, the users are keeping bitcoin in running, because of our buying and selling activity.

[Nerman]

yes, bitcoin is a self sustaining platform. its source are backed by the users itself, depending on the buying and selling activities of users, there are no specific person runs it, it is a decentralized platform by peer to peer system. in terms of technicalities, that i did not know, who monitors the whole system from every transactions, i will leave it to the experts in IT. but as far as the platform itself is concern, i think we, the users are keeping bitcoin in running, because of our buying and selling activity.

I agree, Bitcoin is backed by the people and actually this is what some financial experts are baffled with, but they forgot that the value of one thing is only determined by the people price on willing to buy it. If we agree to buy super car for $10,000,000 even though the price to create it is just $100,000 then that car is worth $10,000,000. It is same with other assets like stocks and other currency.

[Sled]

I don't think that there is something that backing up by bitcoin like a government or an organization and the only thing that i think that puts value on bitcoin is how the people believe that it has value and i think that is the reason for bitcoin to get some value but even though there is no backing up for bitcoin, it is still worth the risk because it could be the future for our technology to run on blockchain.

[Abiky]

I agree, Bitcoin is backed by the people and actually this is what some financial experts are baffled with, but they forgot that the value of one thing is only determined by the people price on willing to buy it. If we agree to buy super car for $10,000,000 even though the price to create it is just $100,000 then that car is worth $10,000,000. It is same with other assets like stocks and other currency.

Yes. People determine whatever value they want for Bitcoin. Since there's no central issuer or authority, Bitcoin is free from any standard valuation. It's based on belief and its underlying technology. There's no other explanation, considering that Bitcoin is just programmable money composed of ones and zeros. If we were to base our valuation on this, then Bitcoin would be worthless. However, because Bitcoin has managed to bring a technology which provides transparency and prevent double spending, it has an inherent value provided by its users.

And that also explains why Bitcoin is a volatile cryptocurrency, because within any given day, people can either recognize it as a valuable cryptocurrency, or all the contrary. Despite this, I believe that Bitcoin will always be a valuable cryptocurrency because of its limited supply, deflationary model, and unparalleled security unlike any other cryptocurrency in existence. Therefore, Bitcoin is backed and will always be backed by its users, which is quite an advantage when compared against traditional fiat currencies. Just my opinion

[richardsNY]

I don't think that there is something that backing up by bitcoin like a government or an organization and the only thing that i think that puts value on bitcoin is how the people believe that it has value and i think that is the reason for bitcoin to get some value but even though there is no backing up for bitcoin, it is still worth the risk because it could be the future for our technology to run on blockchain.

It has use. It has an extremely powerful network securing your transactions and wealth. Yes, the speculative nature is leading, but that's something we can't do anything about -- we just have to go through the initial hype to have it pay off later on. Bitcoin is new, people explore it, abuse it, speculate, it will at some point decrease significantly where the use will turn out to be the leading aspect. Bitcoin is money for me. If I have something for sale I gladly pick Bitcoin over anything else. If I can pay with Bitcoin I gladly do so. I am slowly shifting away from all this speculation nonsense....

[geopolisch]

However, Bitcoin doesn't come out of thin air since there's a lot of effort and cost involved in the mining process.

That's always mentioned during the debates whether or not Bitcoin is good. A lot of economists say that mining is a process which wastes a lot of energy. Printing bills and the distribution of them needs also a lot of energy. Not to mention the banking system which needs a huge backbone. Some people say that the solution is simple - change PoW algorithm to something like PoS which doesn't need as much electricity. However, every solution has its own disadvantages.

Bitcoin is decentralized and is not backed by technology that makes it safe and secure. Besides, it is not controlled by and authority. But the statistics shows that a huge portion of the population using Bitcoin belongs to America and this portion can actually act like a Whale in the Bitcoin market.

They can actually manipulate the prices of Bitcoin. Besides, the technology is transparent and the time when Google and Facebook banned the ads, the technology has eliminated the threat of fraud as well.

[bitcoinerjawa]

bitcoin is only supported by blockchain as a complement if you realize that the bitcoin stands alone does not interfere with some fiat and other media.

[boyshx]

The backing for the bitcoin comes from the investors like you and me. After years of trading, buying, selling we have gotten to multi billion market that we see today which is the consultive proof of such backing that our investment is what gives them the real value. If there would have been no one to put any single penny into it then how do you see that coming to bitcoin? We say bitcoin is worth thousands of dollars today! Why? Because we created the market cap for it which in turn giving the price tag for it. Thats the biggest backing it has.

[Wong owah]

until whenever I will support bitcoin, because my income is in the bitcoin market and I will develop bitcoin to my friends, so bitcoin will grow more advanced and will be glorious.

[kisscoin]

Definitely bitcoin is a very stable currency and despite its fall, it will experience its positive growth! The government frightens the people of his instability only with the intention that people have ceased to invest and deal with cryptocurrency as a whole! Why does the country need a rich people? Something like that.. 

[yslyv]

bitcoin is based on a decentralized blockchain technology. it is not backed by individuals or some groups. it is backed by all the ecosystem including traders and miners. as soon as this ecosystem exist bitcoin is going to stay alive.

[AlehandroTheGreat]

Bitcoin is baked only with its marketing, this is blockchain protocol which is the most useless with others... simply check it 

[davinchi]

People believe bitcoin is backed by nothing. I think that is not the truth. I believe bitcoin is actually backed by people themselves. It is backed by none other than just you. We all witnessed the price has been fluctuating by all those FUDs and bad news. The price changes by emotion and non logical facts. I believe you hold bitcoin no matter what happened and would happen, and believe it is backed by all of us, it would make a history.  

If you are saying that bitcoins price will rise again because of the people then yes it will be depending on the investors in the market, if people will be starting to invest on cryptocurrency again then the demand will continuously and within a few months, the price might go back to normal.

The market is not so good these days and this is due to the demand rate, demand rate controls the value o Bitcoin which is currently low. We expect a better price in future because some people have invested in high markets and now they are in loss so all they need this time is the jump of market or shifting of market from this position into favorable position. As the demand rate has to increase these days because the price is low and will becoming better in the upcoming days.

[laimaro]

It is backed up the huge demand among people as an investment medium. It also has value as payment option.

[uozer]

You have directly or indirectly hit the nail right on the top, that nothing is actually backing Bitcoin regulated or fixed in nature, other than than everybody's general belief of it s existence and co habitat workings as peer to peer form of transactoinary medium.
That abstract strong belief and mindset of all Bitcoin fans, Traders, Miners, Investors and forum members in all Bitcoin Ramification is nothing but just the backings which Bitcoin relied upon for it's existence and sustainability.

[YesJP]

Backed by the trust that people put in, gold is not backed by anything, just the trsut that with gold you can buy and trade things