What is bitcoin backed by?

[frowsiter]

Well, it costs electricity to run the operations of bitcoin and it takes money to buy it. I guess thats enough to understand that from where it gains its value and with what it is backed up really. The bitcoin may be virtual one but it is not really coming out of the thin air but with use of real energy. People forget to add these factors into consideration. Everything gets its value from the process of its making or creating. In bitcoin case its mining, investing and much more ways to gain it. So its pretty straight that it is backed up with the billion dollars market cap that was raised through above mentioned processes.

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[Xising]

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. 

It's not backed by anything unlike the traditional currencies that are generally supported by gold reserves. Since cryptocurrencies are a different kind of currency, it's rise and fall are affected by other factors. That's why when we hear negative news, banning of cryptocurrency activities in some countries, and dipping in value of some coins, especially Bitcoin, it somehow affects the market trends that, in turn, affects other coins in the market. That's actually one of the things that an investor or trader must work with to be able to be successful in this market.

[Anewor]

What backed up bitcoin is the value of fiat currency that each users used to buy it. It could be dollars or any form of currency from which country users came to invest. This is the nature of bitcoin causes it to become volatile when no usage or utility is really being done each time. So if it drops in value this means that the users have already withdrawn part of the backed up money. So this is more about peoples usage of it that creates its value.

[Stac]

Bitcoin is backed by fiat currencies and the users as every day new users are entering the bitcoin community the demand for bitcoins keeps on increasing which causes for the rise in the price of bitcoins and there is only limited number of 21 million bitcoins available in the crypto currency market almost 17 million is already mined and it will take another century to complete the mining of bitcoins as every time the level of difficulty of mining increases it will take years to  finish mining but the price of bitcoins keeps on increasing making it the most expensive thing on the planet.

[Fatanut]

Bitcoin is backed by fiat currencies

This is absurd. Just because you can sell something in exchange of money, doesn't mean that it's backed by fiat currency. I can sell my computer in exchange of fiat currency, is it backed by fiat? Not really. If so, then everything is backed by fiat by default. If anything, bitcoin is backed by the belief of people that this actually has value (and thus they pay money for it), same as fiat money.

every day new users are entering the bitcoin community the demand for bitcoins keeps on increasing which causes for the rise in the price of bitcoins

When you joined the bitcoin community, were you prompted to buy bitcoins? I don't think all of the users are buying bitcoins and even if they do, there are people selling bitcoins on the other hand. The increase of users doesn't necessarily increase the demand for bitcoin until they start buying bitcoins. There can literally be millions of people that are new in the bitcoin community but the demand for bitcoin will still be the same if none of them buys bitcoin.

... but the price of bitcoins keeps on increasing making it the most expensive thing on the planet.

Uh? I can think of hundreds of things that are more expensive than bitcoin even when priced as its peak price. Here's a quick link to the most expensive things in this world.

[Virtual miner]

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. 

Yes, I agree with you. Bitcoin is backed by the people investing in it. The price of any cryptocurrency is highly influenced by the people holding it known as its community. This is truer in the case of Bitcoin. There are many cryptocurrencies being launched every day but Bitcoin is still ruling the cryptocurrency market. This is mainly because Bitcoin enjoys great support from its community.

[polikarp]

I feel sorry for people who could not understand the value of crypto. It is a clear lack of understanding of changing times.

[upotami]

It is backed by mining costs. This is why it does not go below the average mining costs.

[hdueuieo123]

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 the e-money market is in crisis. Do you dare to keep the BTC or sell it? I want to know that.

[diodorako]

It is backed by the belief of people. This applies to all investment options like gold.

[fomiche]

It has got real value in terms of being used as a currency. Much more valuable than gold in my opinion.

[leeheidrick]

maybe bitcoin is supported because with blockchain technology that helps make transactions anonymous,
useful for secure transactions and the manufacture of bitcoin wallets does not require personal data.
this is useful to save energy and time.,
so people support bitcoin because bitcoin is useful.

[Osakrita]

Here is where bitcoin difffers from fiats, it derives its power and usefulness from the people who trusts and use it.That is why it becomes stronger as a currency as more and more persons begin to use it

[kulagina]

It is one of the most popular payment medium these days. Any people do not want to disclose their details while making payment and thus use crypto.

[martynovro]

Crypto has got real life use a payment medium. The price is backed by uses and demand among people worldwide.

[sysoe]

For any commodity the price depends on supply and demand. With events like halving coming up, I expect to see prices rising only.

[onufrii]

If you are getting so surprised with current prices, what you will do when prices go to a million or above per bitcoin.

[jane05]

If you are getting so surprised with current prices, what you will do when prices go to a million or above per bitcoin.

I would like to withdraw some and save my profit and invest again. I hope that bitcoin price will going to rise up more until million.

[donalfonso]

Most currencies world wide are backed by the authority responsible for issuing and not necessarily commodities etc. These are the central banks or national banks of a state. In the case of bitcoin its backed by a combination of the people and technology behind it, that is the blockchain and the miners without  which the crypto currency will loose the confidence reposed in it and collapse

[stepanova]

So much is evolving in terms of how people pay online these days, I see crypto as best option today. The demand will increase with time.