Does Bitcoin had a back up by real money?

[Buttermellow]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

[erikoy]

I bet there are some adjustments on bitcoin market price that could cater all the money being collected from the people who invested on cyrptocurrency. Well i bet that crytpo are being back up by real money but as we all know that not all the people around the world will sell or their crypto and instead they will just hold especially if market price is low.

[hugeblack]

When looking at the currencies "real money" backed by each other down to the US dollar "backed by promises," we find that there is a link to each other, by using bitcoin you can buy/sell without the need to return to those currencies.
People are converting Bitcoin to local currency because they can’t use it to buy daily necessities.
In the future, with the increasing recognition of bitcoin, we will not need these exchange.
Currently, there is a Tether powered by promises to get $ 1 (back up by real money )

[ontrackk]

I bet there are some adjustments on bitcoin market price that could cater all the money being collected from the people who invested on cyrptocurrency. Well i bet that crytpo are being back up by real money but as we all know that not all the people around the world will sell or their crypto and instead they will just hold especially if market price is low.

So pretty much bitcoin and all the crypto is completely backed by fiat as theoretically it would be possible to sell it all for fiat eventually by making the price drop to 0

[dothebeats]

i can't quite understand what you're trying to say, but in reality, bitcoin isn't backed by anything, so are the national currencies of different countries except that the latter are backed by their government (protection, aid, projects etc.). In the case of bitcoin - cash conversion, both parties simply 'believe' that both are valuable, or of the same value without having to think that either is backed by anything. The buyer agrees that it is worth X in cash so they make the trade and that's it. The seller receiving the cash after the transaction don't necessarily mean that bitcoin is backed by cash. A trade happened between two parties and that's pretty much it.

[darthmaul]

I understood only 50% part of your post but I know what you asking here. Bitcoin gets its value from the real world investment only. That is the only driving force for its increased or decreased values. The math here is very simple, when people put their money into bitcoin, they buy it, thus they create a demand for it and then slowly this gives it price tag. This process over the time creates more demand and also at the same time supply decreases due to limited coins. So we can generally say that crypto currency are backed up by the real money only.

[EVOS]

Bitcoin is not supported with real money, if you ask why every time you sell bitcoin can always be sold, it's because the number of people who want to buy very much. if many who sell the price will go down.

[newinbtc]

I understand your point , Bitcoin is not backed by real cash its divital currency and generated through bitcoin mining , we do trading and According to demand Price Come out for buy and sell. If demand is less price will Lower as currently stage.

Real money value is backed by total money holding by government + total value of property + Trading international

You can relate both But its difference is only Botcoin is digital.
We can Buy bitcoin with real money or vise versa

Bitcoin is backed by Mining Hash power ... More you mine more you get....   

[EdenHazard]

For those who live in countries that receive bitcoins legitimately will be free to use bitcoin when making transactions and do not need to swap money fiat, this is the first point bitcoin doesn't need to be backed if the state receives bitcoin well.

Then if you live in a country that has not received bitcoin used as a legitimate transaction system, then you need to exchange the bitcoin to the money fiat, the second points bitcoin only need to be backed by money fiat if the country does not receive bitcoin as a payment system.

From both points above there is a 'backed' factor by money fiat if the reason a country has not received bitcoin as a legitimate payment. However, if all countries receive bitcoin well, then bitcoin does not need to be backed by money fiat.

[pinkliar]

Actually I asked that before, and what if all of us sell our bitcoin?  But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

[hugeblack]

I asked that before, and what if all of us sell our bitcoin?  But the price of bitcoin is more than the real money how we can get that? Well, I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

In fact, if we all decide to sell now it is ideally about $131,339,527,800 -----> source https://coinmarketcap.com/
I think there is enough money to do that exchange and more. but when everyone starts selling, the supply will increase, and the demand will decrease, and therefore the price will drop to bring the balance. "down to zero."
if we all decided to sell, no one will trust in the value of bitcoin and so collapse.
When we say "Bitcoin backed by money," it means that it is a guarantee for a certain amount of money. If there is no money, we can not generate more bitcoins.

[Tory-Tory]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin is not supported by real money, but there is a big dependence on real money and the ability to change the crypto currency for real money, because the only way to spend your profits is to exchange for fiat money.

[PIMPdev]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin is having only agreed value and not backed with real money so you can sell your Bitcoin in exchange only to those people who are ready to buy it.

[Deubila]

Actually I asked that before, and what if all of us sell our bitcoin?  But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

Exactly. I think so.
BTC is not supported by cash. It is a digital money form and it's electronic numbers that run in the air.
But its value is higher than cash and more convenient than cash, and that proves long-term value is more positive.

[basyang]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

It seems to me that yes. It is possible that bitcoin is being back up by real money. Even though its still illegal in some countries there are tools that you can used to convert money to your native currency oncw you need it. For me, bitcoin is a long term investment because as long as you store it the more it increase it value, depends on the market price though.

[JohnPierson]

When looking at the currencies "real money" backed by each other down to the US dollar "backed by promises," we find that there is a link to each other, by using bitcoin you can buy/sell without the need to return to those currencies.
People are converting Bitcoin to local currency because they can’t use it to buy daily necessities.
In the future, with the increasing recognition of bitcoin, we will not need these exchange.
Currently, there is a Tether powered by promises to get $ 1 (back up by real money )

It's backed up by its infrastructure. Btw, I have heard interesting comment on arguments regarding considerable energy cost to maintain Bitcoin network. When comparing with fiat we should take into account expenses of each government on their armies. Very philosophical, but anyway

[trecore4]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

It is backed up by us, the investors who has invested their real money into it.
Now coming to the second question of yours, well if everyone starts to exchange their bitcoin all at the same time then it will be almost impossible to fill all the orders because they will be in the same zone that is selling. If there is no buy order against that sell order then it will never get executed and thus the market will remain as it is and there wont be any movement. This is why its not going anywhere as long as the money keeps flooding and backing up the bitcoin.

[tiurminator]

No, so if all people in the world exchange their bitcoin the price will getting cheaper and cheaper and continue to decline, maybe until zero.   

[alyssa85]

Actually I asked that before, and what if all of us sell our bitcoin?  But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

You can only sell if there is a buyer...

The price will only go to zero if no-one is willing to buy. But as we have seen with alts, there are always buyers, even for the most obscure alts.

[player514]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin currency exchanges work in a manner similar to banks. One first deposits amounts of money in the currencies supported by the exchange, to his own account in the exchange, uses these balances to trade with other users of the exchange and then withdraws that money. Unlike over-the-counter transactions, there is no risk of losing money due to people not fulfilling their part of the deal, as long as the exchange itself does not commit fraud or withhold money. Exchanging bitcoins for other forms of currency brings up some issues regarding chargeback fraud.

[ClaraFowler44]

While Bitcoin's long-term potential has yet to be established, it must be said that e-money is predicted to go far when it comes to revolutionizing the way we conduct online transactions. While at this time, the main market that Bitcoin has integrated is Bitcoin's gambling and online casinos, this is by no means all that it should be limited to. Compared to fiat currencies, Bitcoin allows individuals to regain strength from banks and institutions as it is not regulated and able to rebuild free markets. Just like this, Bitcoin is not affected by inflation, much faster to move and harder to lose than fiat currencies. All of these factors make some believe that electronic money will soon take over from fiat-based currencies and completely transform how we view and use our money.

[beverly788113]

While Bitcoin's long-term potential has yet to be established, it must be said that e-money is predicted to go far when it comes to revolutionizing the way we conduct online transactions. While at this time, the main market that Bitcoin has integrated is Bitcoin's gambling and online casinos, this is by no means all that it should be limited to. Compared to fiat currencies, Bitcoin allows individuals to regain strength from banks and institutions as it is not regulated and able to rebuild free markets. Just like this, Bitcoin is not affected by inflation, much faster to move and harder to lose than fiat currencies. All of these factors make some believe that electronic money will soon take over from fiat-based currencies and completely transform how we view and use our money.

I believe that this is not possible, so to be able to back it up like real money, the bitcoin must be very large and of stable value, you can see that the bitcoin price is fluctuating continuously and in The amplitude is very large, the number of bitcoins is limited and very few. Therefore, it is impossible to monetize a bitcoin.

[Zct2002]

Actually I asked that before, and what if all of us sell our bitcoin?  But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

The price would definitely dropped if all of us are going to sell our bitcoin but i don't think that it would happen. We could not control the minds of everybody who are into bitcoin and what to do with it. Bitcoin is not backed by fiat but everybody agreed that bitcoin is valuable so be it.

[cahbagus555]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin on exchanger is like commodities. Peoples buy and sell or keep it on their own wallet for long term. Exchange dont hold bitcoin, exchange is just third party. We can use dex exchange if we want to peer to peer transaction

[Robert_Austin]

I'm not sure if I would say that it is necessarily "backed" by money but it is most certainly relative to money. If it were backed, then it's value would be determined by one unit of something (say, the dollar), and it would be subject to being used in the event that the bitcoin wouldn't be there. The US dollar was backed by gold until several decades ago, but then they removed that in order to have better control over it. So now the Federal reserve can print as much as it wants to determine how much value it holds in the country.

Bitcoin is exchangeable for other money but is more independent.

[Andrew S]

Everyone says that bitcoin can displace real money, but this will never happen if it is backed up by paper money.

[kryptqnick]

Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Not really. People who possess gold can sell it one day and buy, say, furniture. Yet it will not mean that furniture backs up gold or vice versa. Bitcoin is a financial asset and we are likely to live till the time when we don't even need to exchange bitcoin for fiat anymore, because we can simply pay for goods in btc. An example of (supposedly) backed up coin is tether. Its creators claim they have one real US dollar  for every coin out there on the market. Oh, and the coin is not supposed to be as volatile as btc is if it is backed up.

[btcluisdiki]

In my views,  I think  btc is backed up with real currency money that by anytime people will sell their Btc"s, j i i instantly it  can immediately transact fiat to the person doing the transaction. Moreover, I believe that btc has a huge reserved amount of fiat money which is equivalent to the current  marketcap.

[Nisharawal]

Of course, bitcoins are having a good backup by a real money otherwise it will not be possible for them to hold their coins even in a panic situation and also they won't be able to sell their coins when there is heavy greed inside the market. Bitcoin is really backed up by the real money and the money is from heavy and big investors who are adding up value to the bitcoin and manipulating the market.

[Popov_popov]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

We simply use paper money in life, that's why we need them.

[cabalism13]

Bitcoin is a digital currency like we use on some other online games, it can be bought and trade into something but the that it is just a digital money so real money doesn't back it up.
It's just that many people now are fond of using it thats why the value of Bitcoins continue to rise. Just think of it as a product that has a high number of demands, if its popular in the market then the price will be higher as long as the people grabs it.

[ClaraFowler44]

While Bitcoin's long-term potential has yet to be established, it must be said that e-money is predicted to go far when it comes to revolutionizing the way we conduct online transactions. While at this time, the main market that Bitcoin has integrated is Bitcoin's gambling and online casinos, this is by no means all that it should be limited to. Compared to fiat currencies, Bitcoin allows individuals to regain strength from banks and institutions as it is not regulated and able to rebuild free markets. Just like this, Bitcoin is not affected by inflation, much faster to move and harder to lose than fiat currencies. All of these factors make some believe that electronic money will soon take over from fiat-based currencies and completely transform how we view and use our money.

I believe that this is not possible, so to be able to back it up like real money, the bitcoin must be very large and of stable value, you can see that the bitcoin price is fluctuating continuously and in The amplitude is very large, the number of bitcoins is limited and very few. Therefore, it is impossible to monetize a bitcoin.

I'm just a newbie, so the knowledge may be limited. But in my opinion, the constant price fluctuations and the large amplitude are really what investors really need, who have too much experience in seeing those constant price fluctuations. So it is not necessary to back up as real money, just those fluctuations that bring usability and profitability.

[0t3p0t]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin is not backed up by fiat money it is because Bitcoin is created as a digital currency that is pretty independent I mean we can even use it without real money. The only thing that makes it like it was backed up by fiat is that central banks regulated local Bitcoin exchanges for a specific purpose which is to exchnage Bitcoin into fiat. It possible to exchange Bitcoin holdings anywhere in the world depending on every country's view and rules towards Bitcoin or cryptocurrency as a whole.

[fiulpro]

No

Bitcoins isn't backed up by anything , gold or any other real money and this is the reason that it's a breakthrough new technology which is unlike anything else in the market.
Well if you think in another way you can even say that Bitcoins is backed up by investors just like you and me, we are the ones deciding it's value, not the government not the dollar not the gold, but real people who are in this business.

[Eros1on]

Most of the crypto investors buy BTC with money. I don't know what you mean by real money. Investing is risky. It's all about taking money.

[Willie_Linder]

Very good question. It seems obvious but actually, it is very important to understand this. Even real money that we use every day is not totally backed up. Countries can have their own money if they have a certain quantity of gold. Money is backed up by gold. Unfortunately, even the dollar is not strong enough when it comes to real money. Remember the subprime crisis? It has everything to do with virtual money and real money. Nowadays, recognition of bitcoin is hard. With time, more and more companies will use virtual money and maybe then we will not need any real money to back it up. It can work on it own.

[bajingluncat]

I think it's not right to say btc is supported by flat money, but for now it is very difficult to use btc directly as a transaction tool because of the lack of facilities, the current fund btc and flat money still go hand in hand and I think they are complementary, in the future if btc is widely accepted and facilities are starting to be adequate then we do not have to bother to redeem btc on flat money every transaction
 

[jayyen]

Bitcoin value is as a result of the money people invested in it.The price either high or low at a particular time is as a result of demand and supply.So to ask largely if btc is backed by real money is emphatic yes.The amount of money in bitcoin can be seen on coin market cap where you can also see the amount of bitcoin that is in the system.

[Robert_Austin]

Very good question. It seems obvious but actually, it is very important to understand this. Even real money that we use every day is not totally backed up. Countries can have their own money if they have a certain quantity of gold. Money is backed up by gold. Unfortunately, even the dollar is not strong enough when it comes to real money. Remember the subprime crisis? It has everything to do with virtual money and real money. Nowadays, recognition of bitcoin is hard. With time, more and more companies will use virtual money and maybe then we will not need any real money to back it up. It can work on it own.

Well, money was backed by gold until Nixon removed the gold standard in 1971, which meant that it no longer backed the dollar and they could be directly converted. That then enabled them to go into full force manipulation as they started printing as much as they wanted. Which, as you said, is a reason for the subprime crisis (along with a lack of accountability of banking executives as they got away with selling rotten meat for AAA prices).

As said above, investors back bitcoin. Also, blockchain backs bitcoin. These are the only two things that can stand confidently behind it and hold its value. But it doesn't have any kind of instant convertibility like the gold standard had on the USD.

[wuvdoll]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

"Real money" lol. What is real money ?
I mean you think the money in your bank account seems more real than the bitcoin you have ?
You can cash out your money in your bank account into cash and you can cash out your bitcoins into cash from a bitcoin ATM as well. How real is the money in your bank account ? Whats different than bitcoin ?

You can have a debit card and go spend that bank money anywhere? Well you can join somewhere like xapo or coinsbank and get a debit card and spend your debit card anywhere you want as well. Bitcoin IS REAL MONEY.

[beverly788113]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

I believe that bitcoin can not be backed up in real money, you can see that the number of bitcoins in the world is very small and it is not enough to meet the needs of any country. Bitocin prices also fluctuate very strongly and in very large amplitudes. Therefore, I believe that bitcoin can not become a currency and bitcoin can only be used as a means of exchange for keeping altcoin and USD.

[COCOMARTIN]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin is Backed by people. So, if nobody wants to invest in bitcoin, the demand will decline because of its price drop. Notice that when many people invest in bitcoin the price rises and when many sell it is falling its price.

[Goroshik]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

If everyone sell bitcoin, than somebody will buy it. And no, crypto currencies don't have gold backup.

[coinscircle]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

I think that is absolutely impossible and if it happens, it will take a long time, take a lot of time. You can see that bitcoin is not controlled by a government or a state, so it is very difficult to trade successfully when the bitcoin price is not controlled and shark-dominated.

In addition, the number of bitcoins is limited so that bitcoins are not enough to meet human needs.

[goaldigger]

Bitcoin and fiat if it is what you meant by real currency is related to each other like currencies around the world. They had this particular value and have different equivalents per currency. Because the encypted currency or cryptocurrency has also its unique value, it can be exchanged into fiat according to what its present value is.

[stiffbud]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

No bitcoin isn't being backed up by real money. The sole purpose of the value of Bitcoin is supply and demand, the supply of bitcoin is limited i.e. 21 million coins to be formed ever and out of which about 17 million are mined already. So when a person buys bitcoin he creates demand and makes the market and that increases the price so when bitcoin become popular the market rises and vice versa.

[jaysabi]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

No bitcoin isn't being backed up by real money. The sole purpose of the value of Bitcoin is supply and demand, the supply of bitcoin is limited i.e. 21 million coins to be formed ever and out of which about 17 million are mined already. So when a person buys bitcoin he creates demand and makes the market and that increases the price so when bitcoin become popular the market rises and vice versa.

Using Bitcoin in a transaction doesn't do anything for supply or demand necessarily. Those Bitcoins have already been bought or sold, so transacting in BTC shouldn't affect the price. The replacement of those Bitcoins by someone who spent them in theory is how that would come into play. On the flip side, it's more likely that transacting in btc has a negative pressure on price than someone buying with btc and then eventually buying more btc to replace what was already spent. That's because businesses are unlikely to hold btc, they just accept it as an accommodation, but are likely using a processor who instantly credits them with a USD equivalent amount. Holding it for any period of time threatens to erase the profit margin of the transaction due to price volatility, so purchases are likely to be instantly sold and converted to USD.

[just_Alice]

I don't think that what you assume is possible, exchanges don't work like that in order to prevent extremely dramatic drops in prices, which can cause serious problems to economics. At least exchanges that I used had a strictly limited amount of Bitcoins you could sell for fiat currency and that amount was exactly equal to the amount of Bitcoins that was bought on that same exchange. So if everyone sells Bitcoin, but no one buys exchanges will just stop working after the exhausted stock. But Bitcoin isn't physically backed up by money or any other assets, like all other cryptocurrencies. There's only one maybe upcoming cryptocurrency, invented specifically for Muslims that conform with Sharia. As long as it prohibits using any currency that isn't backed up by anything the idea is to create a crypto, that would be backed up by gold, here's the link https://qz.com/1247409/bitcoin-cryptocurrencies-for-muslims-backed-by-gold-are-popping-up/

[talenah kotang]

Bitcoin is not supported by real money because the supply of bitcoin is 21 million, actually what happens is the change of bitcoin by people. for example: Those who sell bitcoin and after that someone buys. Easier we can equate with money in the bank.

[Sadlife]

Bitcoin is the same with fiat currency that is back up by promises and helps one another with the growth of it's market price so i think they are link with one another and one of the factor of it's price growth of course investors. Bitcoin or crypto currencies is no different it is also back up by investors but has a lot of good feature but mainly it's popular because of it's decentralization.

[Grayy]

Not all people will exchange their bitcoin into fiat. There are people who keep bitcoin as a medium of investment over time. Bitcoin use is expected to grow in the future too. What this means is that when people get to do more buying and selling and offering services and pay/get paid with bitcoin, people wouldn't have to exchange their bitcoin as much.

[HandsomePeople]

No. it doesn't back by any fiat money ( I disagree using the term real money ). Bitcoin gets its value base on Supply and demand, actually can be zero value if there is no demand for it.

[batang_bitcoin]

I can't comprehend it but my understanding is like this.

OP is telling that bitcoin is backed up by "real money" because when we sell bitcoin, we are getting cash/fiat money and that's what made him think that it is possible that bitcoin is backed up by real money.

Well, bitcoin is decentralized and it isn't backed up by anything. You just sell and exchange your bitcoin to cash just like you are selling goods for cash.

[AirFlame]

I think it's not right to say btc is supported by flat money, but for now it is very difficult to use btc directly as a transaction tool because of the lack of facilities, the current fund btc and flat money still go hand in hand and I think they are complementary, in the future if btc is widely accepted and facilities are starting to be adequate then we do not have to bother to redeem btc on flat money every transaction
 

A big difference is there between bitcoin and fiat currency. No doubt that still all the people of the world are using their fiat currency for different purposes, and people use their fiat currencies to buy bitcoin, but still we cannot say that bitcoin has a backup of fiat currency. I think that as time pass people will start using bitcoin for everything.

[Deubila]

Bitcoin and fiat if it is what you meant by real currency is related to each other like currencies around the world. They had this particular value and have different equivalents per currency. Because the encypted currency or cryptocurrency has also its unique value, it can be exchanged into fiat according to what its present value is.

You should just think as simple as this. When you join a game you want to buy something in it, you have to put money in to buy. Electronic money and money will also be exchanged for each other. Due to the demand of the market when you really care.

[ucingucingan]

besides backing up I think bitcoin is also profitable, because of the price movement that every year tends to increase, and it is a very good thing to secure our money and get lots of profits, this is safer and more profitable than saving deposits at a bank

[charlotte04]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Since Bitcoin is a big deal and so expensive now then it does naturally have value to have a back up money from people because they intend to believe that it is.

[daringkhan30]

Bitcoins have no intrinsic value. But since they were introduced to the world in 2009 by inventor Satoshi Nakamoto (a pseudonym), they have turned into a billion-dollar market and have been designated a currency by the U.S. government. Since the days when stones and shells were recognized as a means of payment, currency has taken many forms. What makes bitcoin a currency is what it does, not what it is. "To the extent it looks, walks and acts like a duck, this 'duck' is a currency,"

[jaysabi]

Bitcoins have no intrinsic value. But since they were introduced to the world in 2009 by inventor Satoshi Nakamoto (a pseudonym), they have turned into a billion-dollar market and have been designated a currency by the U.S. government. Since the days when stones and shells were recognized as a means of payment, currency has taken many forms. What makes bitcoin a currency is what it does, not what it is. "To the extent it looks, walks and acts like a duck, this 'duck' is a currency,"

The US government has never designated Bitcoin a currency. The closest to an official designation of any kind is by the IRS, which has deemed Bitcoin to be "property" for taxing purposes. That's not a currency. It is true however that Bitcoin has no intrinsic value. It doesn't represent anything in particular, but people have started acknowledging it to have value. This is an entirely artificial construct, and the value is only a representation of what large groups of people agree it is worth. Because of this, there is an inherent desire to constantly value it ever higher, because that's the only way you can get a return. On the other hand, potential buyers want to value it lower so they don't spend as much to acquire it. But real currencies are being traded to acquire the property (Bitcoin), the crypto itself doesn't function as a currency very much in the real world.

[Robert_Austin]

Bitcoins have no intrinsic value. But since they were introduced to the world in 2009 by inventor Satoshi Nakamoto (a pseudonym), they have turned into a billion-dollar market and have been designated a currency by the U.S. government. Since the days when stones and shells were recognized as a means of payment, currency has taken many forms. What makes bitcoin a currency is what it does, not what it is. "To the extent it looks, walks and acts like a duck, this 'duck' is a currency,"

The US government has never designated Bitcoin a currency. The closest to an official designation of any kind is by the IRS, which has deemed Bitcoin to be "property" for taxing purposes. That's not a currency. It is true however that Bitcoin has no intrinsic value. It doesn't represent anything in particular, but people have started acknowledging it to have value. This is an entirely artificial construct, and the value is only a representation of what large groups of people agree it is worth. Because of this, there is an inherent desire to constantly value it ever higher, because that's the only way you can get a return. On the other hand, potential buyers want to value it lower so they don't spend as much to acquire it. But real currencies are being traded to acquire the property (Bitcoin), the crypto itself doesn't function as a currency very much in the real world.

Ah but if it has no intrinsic value, how can they declare it an asset? Can't have both I'm afraid...

In the new age of the internet, anything online can be deemed to have intrinsic value. We saw this phenomenon in the late 1990's when everyone thought it would be a great idea to invest in websites with a lot of hits. These hits were of course perceived value, but they were being sold as intrinsic value. Logic had it at the time that more hits meant more profits for a company.

The intrinsic value in bitcoin is the blockchain behind it. That very code makes it worth much more than any other idea in the last 20 years.

[jaysabi]

Bitcoins have no intrinsic value. But since they were introduced to the world in 2009 by inventor Satoshi Nakamoto (a pseudonym), they have turned into a billion-dollar market and have been designated a currency by the U.S. government. Since the days when stones and shells were recognized as a means of payment, currency has taken many forms. What makes bitcoin a currency is what it does, not what it is. "To the extent it looks, walks and acts like a duck, this 'duck' is a currency,"

The US government has never designated Bitcoin a currency. The closest to an official designation of any kind is by the IRS, which has deemed Bitcoin to be "property" for taxing purposes. That's not a currency. It is true however that Bitcoin has no intrinsic value. It doesn't represent anything in particular, but people have started acknowledging it to have value. This is an entirely artificial construct, and the value is only a representation of what large groups of people agree it is worth. Because of this, there is an inherent desire to constantly value it ever higher, because that's the only way you can get a return. On the other hand, potential buyers want to value it lower so they don't spend as much to acquire it. But real currencies are being traded to acquire the property (Bitcoin), the crypto itself doesn't function as a currency very much in the real world.

Ah but if it has no intrinsic value, how can they declare it an asset? Can't have both I'm afraid...

In the new age of the internet, anything online can be deemed to have intrinsic value. We saw this phenomenon in the late 1990's when everyone thought it would be a great idea to invest in websites with a lot of hits. These hits were of course perceived value, but they were being sold as intrinsic value. Logic had it at the time that more hits meant more profits for a company.

The intrinsic value in bitcoin is the blockchain behind it. That very code makes it worth much more than any other idea in the last 20 years.

You're confusing intrinsic value with extrinsic value. Intrinsic value is something that has value due to utility or some innate feature of the object that makes it valuable; essentially that the value comes from within (hence the name "intrinsic"). Extrinsic value is the value people assign to something, perhaps even arbitrarily. Silver has intrinsic value because it's a necessary metal for many industrial uses. Water has intrinsic value because it's necessary to survive.  Both of these have value that comes from within the commodity.  Bitcoin has value because everyone just decides it does. That's why it has value as an asset and it isn't intrinsic.

Your website example is not an example of things with intrinsic value. It was people arbitrarily assigning value to something that had no intrinsic value, which eventually collapsed the bubble. Bitcoin has traced the same path with the 70% crash this year.  Additionally, Bitcoin isn't necessary for blockchain, so if you want to make the argument the blockchain has intrinsic value (and I'm not even sure I agree with that), it would mean nothing for Bitcoin.

[itsik78]

on exchanges, in speculative and not just order, there is reinforcement of the crypto currency with real money. People enter their dollars / rubles / euros and buy bitcoins on them, coins are reinforced directly with money, which in turn is backed by the real sector, where they earn money for goods and services. The growing turnover of "living money" inevitably supports and increases the cost of bitcoin.

[Ranly123]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Yes, Bitcoin is backed by our Fiat currency. Though it is a digital currency, it could also serve as a means of transacting online because it can be converted to Fiat if used as a payment.

[aleksnutis]

Now the process of exchanging Bitcoin for real money has become easier due to the popularization of localbitcoins, but still it takes considerable time, in some countries it carries the risks of blocking cards and has high commissions of 5-8%.

[awawo]

Bitcoin is back up by it market capitalization and that is why bitcoin is registered in the world exchange market using the blockchain technology as it bank and once it market capitalization in the exchange market remains high the central bank have no choice then to back it up with traditional faint money so long as the block can be min.

[maculeth]

maybe, or maybe there is a bank that supports and is ready to print money on every bitcoin exchange to fiat? I also haven't found a theory about it.

[jayhawk1]

Bitcoins have no intrinsic value. But since they were introduced to the world in 2009 by inventor Satoshi Nakamoto (a pseudonym), they have turned into a billion-dollar market and have been designated a currency by the U.S. government. Since the days when stones and shells were recognized as a means of payment, currency has taken many forms. What makes bitcoin a currency is what it does, not what it is. "To the extent it looks, walks and acts like a duck, this 'duck' is a currency,"

The US government has never designated Bitcoin a currency. The closest to an official designation of any kind is by the IRS, which has deemed Bitcoin to be "property" for taxing purposes. That's not a currency. It is true however that Bitcoin has no intrinsic value. It doesn't represent anything in particular, but people have started acknowledging it to have value. This is an entirely artificial construct, and the value is only a representation of what large groups of people agree it is worth. Because of this, there is an inherent desire to constantly value it ever higher, because that's the only way you can get a return. On the other hand, potential buyers want to value it lower so they don't spend as much to acquire it. But real currencies are being traded to acquire the property (Bitcoin), the crypto itself doesn't function as a currency very much in the real world.

Ah but if it has no intrinsic value, how can they declare it an asset? Can't have both I'm afraid...

In the new age of the internet, anything online can be deemed to have intrinsic value. We saw this phenomenon in the late 1990's when everyone thought it would be a great idea to invest in websites with a lot of hits. These hits were of course perceived value, but they were being sold as intrinsic value. Logic had it at the time that more hits meant more profits for a company.

The intrinsic value in bitcoin is the blockchain behind it. That very code makes it worth much more than any other idea in the last 20 years.

You're confusing intrinsic value with extrinsic value. Intrinsic value is something that has value due to utility or some innate feature of the object that makes it valuable; essentially that the value comes from within (hence the name "intrinsic"). Extrinsic value is the value people assign to something, perhaps even arbitrarily. Silver has intrinsic value because it's a necessary metal for many industrial uses. Water has intrinsic value because it's necessary to survive.  Both of these have value that comes from within the commodity.  Bitcoin has value because everyone just decides it does. That's why it has value as an asset and it isn't intrinsic.

Your website example is not an example of things with intrinsic value. It was people arbitrarily assigning value to something that had no intrinsic value, which eventually collapsed the bubble. Bitcoin has traced the same path with the 70% crash this year.  Additionally, Bitcoin isn't necessary for blockchain, so if you want to make the argument the blockchain has intrinsic value (and I'm not even sure I agree with that), it would mean nothing for Bitcoin.

What is "real money" you are talking about? If you mean fiat currency what does really make fiat money "real money"? Is it the governmental backed currency? Because there are tokens and coins that are backed up governments as well, go check Estonia and Venezuela who has governmental backed money yet none of them are as big as neither bitcoin nor dollars.

Is it the common usage? Because bitcoin is used and has a higher marketcap than most countries money as well. Is it laws and acceptance? Because I am pretty sure there are more places in the world where you can spend bitcoin and can't spend Zimbabwe trillions. Bitcoin IS REAL MONEY.

[guoyu78]

Bitcoins have no intrinsic value. But since they were introduced to the world in 2009 by inventor Satoshi Nakamoto (a pseudonym), they have turned into a billion-dollar market and have been designated a currency by the U.S. government. Since the days when stones and shells were recognized as a means of payment, currency has taken many forms. What makes bitcoin a currency is what it does, not what it is. "To the extent it looks, walks and acts like a duck, this 'duck' is a currency,"

The US government has never designated Bitcoin a currency. The closest to an official designation of any kind is by the IRS, which has deemed Bitcoin to be "property" for taxing purposes. That's not a currency. It is true however that Bitcoin has no intrinsic value. It doesn't represent anything in particular, but people have started acknowledging it to have value. This is an entirely artificial construct, and the value is only a representation of what large groups of people agree it is worth. Because of this, there is an inherent desire to constantly value it ever higher, because that's the only way you can get a return. On the other hand, potential buyers want to value it lower so they don't spend as much to acquire it. But real currencies are being traded to acquire the property (Bitcoin), the crypto itself doesn't function as a currency very much in the real world.

Ah but if it has no intrinsic value, how can they declare it an asset? Can't have both I'm afraid...

In the new age of the internet, anything online can be deemed to have intrinsic value. We saw this phenomenon in the late 1990's when everyone thought it would be a great idea to invest in websites with a lot of hits. These hits were of course perceived value, but they were being sold as intrinsic value. Logic had it at the time that more hits meant more profits for a company.

The intrinsic value in bitcoin is the blockchain behind it. That very code makes it worth much more than any other idea in the last 20 years.

You're confusing intrinsic value with extrinsic value. Intrinsic value is something that has value due to utility or some innate feature of the object that makes it valuable; essentially that the value comes from within (hence the name "intrinsic"). Extrinsic value is the value people assign to something, perhaps even arbitrarily. Silver has intrinsic value because it's a necessary metal for many industrial uses. Water has intrinsic value because it's necessary to survive.  Both of these have value that comes from within the commodity.  Bitcoin has value because everyone just decides it does. That's why it has value as an asset and it isn't intrinsic.

Your website example is not an example of things with intrinsic value. It was people arbitrarily assigning value to something that had no intrinsic value, which eventually collapsed the bubble. Bitcoin has traced the same path with the 70% crash this year.  Additionally, Bitcoin isn't necessary for blockchain, so if you want to make the argument the blockchain has intrinsic value (and I'm not even sure I agree with that), it would mean nothing for Bitcoin.

Well everyone keeps saying bitcoin is decentralized and so forth but I feel like bitcoin is heavily reliant on dollar, whatever dollar does bitcoin reacts and whatever governments does bitcoin react as well. What if ETF of bitcoin gets accepted tomorrow? We know it will go up, hell it will skyrocket and if a governmental acceptance increases your price than you can't call it a decentralized object, it is bound to governments of the world and the economists of the world. However bitcoin is not "backed" by anything, obviously for that to happen the price of it should be tied to something and it is not.

[jestbenen8]

maybe, or maybe there is a bank that supports and is ready to print money on every bitcoin exchange to fiat? I also haven't found a theory about it.

Yeah bitcoin has real money on its back because when I buy bitcoin I will have to pay for it. Exchange will convert my local currency into dollar and then into bitcoin. That’s why I can say that all the bitcoin in the world has a value in real money and you can cash your coins any time for real money. Ups and downs do not affect the capitalization of real money.

[resty]

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

That is what happening now while bitcoin is in a stage of public analizing towards negotiation for final acoption for every people. You are definitely true local exchanger now is a back up of bitcoin to fiat money.

[satriagedhe]

backed up by "belief " i think , belive that bitcoin will stable on the price and will not gone or scam instantly i think like that

[spongegar]

I think it is more like how much people sre willing to pay for it. Fron there the price just keeps on moving depending on the supply and demand for the coin. Same thing with gold and other precious metals. It will get more and more expensive as more and more people want to gwt their hands on a limited number of coin.

[daarul50]

I think it is more like how much people sre willing to pay for it. Fron there the price just keeps on moving depending on the supply and demand for the coin. Same thing with gold and other precious metals. It will get more and more expensive as more and more people want to gwt their hands on a limited number of coin.

I think that bitcoin is similar to a product where bitcoin has a price when bitcoin doesn't have a price it won't be possible for other people to compete to have it as much as possible.

[andriw]

bitcoin has no real money reserves, only fiat has real money reserves. when everyone exchanges bitcoin for fiat, will it sell all? depending on the amount of fiat that is accommodated in the exchange, when enough, all bitcoins can be sold.
but if everyone sells bitcoin who buys it?

[strunberg]

backed up by "belief " i think , belive that bitcoin will stable on the price and will not gone or scam instantly i think like that

although bitcoin didnt back up by anything , but dont forget about cost operational to mine bitcoin, it has similarity with gold back up for each fiat printed.each bitcoin mined has expensive cost too.

[supermine]

Bitcoin is not back up money,it just by demand and supply so the bitcoin has value and it can be converted into money which equivalent value on the exchanges at the current day.

[PIMPdev]

does real money back up by real money?

[Kakmakr]

You might not understand how currency exchanges work, because you think Crypto currency has to be backed by Fiat currencies to be real money. If you bought Bitcoin from someone and not from a exchange, you can still pay for services and goods with those bitcoins, without you first having to convert it to Fiat (cash) currencies. (You just need to find those merchants or online websites that accepts Bitcoin as a payment option.)

Also, Exchanges are just the middleman between two parties.. On the one end you have people who wants to sell bitcoins for Fiat and on the other end you have people who wants to buy bitcoins with Fiat and they bring the two people together. (The charge a fee for that service)

[Vatimins]

     Well in layman's terms, bitcoin is not backed up by anything but trust from both sides A and B. It is but air. But even so, bitcoin has people with big names that are fond of using ng bitcoin and making it a store of value. Which is if you think about it, isn't that bad, just as fiat is backed by government and banks, bitcoin has these big names that can back it up since they are heavily invested on it. Although not as reassuring, it still gains trust from many other crypto enthusiasts like you and me. For all we know, thee may also be government or bank employees that are invested in not just bitcoin but in this industry as a whole. That's how I understand bitcoin.