What are altcoins backed by?

[msdjaw]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

[1715025867]

1715025867

[passwordnow]

USD was backed by the government and they are the one that gives value to it. They create value to whatever they think is valuable of something just to let the people start using it. I'm not an economist and my opinion on this, altcoins are backed solely on its market cap I mean most of the crypto's. It can be a support from the its community or the miners who have been mining that coin. Depends on the person you ask and on how he sees the value of that specific altcoin.

[el kaka22]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

No they are not backed by calculations made by asic miners in the world.
Altcoins are backed by the project itself, the idea worth money and that is what we are willing to pay for.

People buy bitcoins because they want to buy something with it, they buy bitcoin because they feel the price will go up, people buy bitcoin because they want to send money to someone and it costs too much with western union. Basically bitcoin has utility that people are willing to pay for and that is why it has a price.

Ethereum is just like the same, people want to play games on dapp so they buy it, people want to use the blockchain to create ICO so they buy it (and fund the ICO) people want to use the blockchain to improve a identity government branch so they buy it. Basically all coins have some utility and their price reflects that utility for it or the support of people for that coin.

[Thanasis]

Crypto currencies were backup up by nothing because it has value from demand and supply just like the thing as gold you were mentioned and really USD not backed by by gold for now but initially government calculated the USD based on their gold storage.

[awawo]

Well must of the altcoins are back by one project and products and the other most of them are loyalty reward system which can be convert into one product or the other except for some altcoins that have no working product to support them.

[kingzpro]

Just take them as utility coins or we can say that they only represent the project or technology and there is no other rights like profit share or decision making of the project like we see in shares but then again we have seen altcoins gaining massive growth in value mostly because of popularity, use cases and adoption.

[cabron]

I don't really know what you mean about a coin backed by ETH, I don't see it that way. The only coin backed by gold was XAU, that is just it.
Prices just depend to the bids in the market that's what it is so if the coin's demand is stronger. When a coin has use case in the platform and people really use it, the coin will have a good price since demands are going to be stronger in the market.

[bitcoin-shark]

in general the crypto currencies are not backed by anything, only the stablecoin have some guarantee behind some the dollar other gold...

[bitmover]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

USD is a Fiat currency, which is a currency not backed up by anything. Aas said above , USD is not backed by gold since long time ago.

Nothing is backing altcoins or even bitcoin. Some stable coins such as tether are supposedly backed up by USD

[Awesomus Maximus]

The only thing backing up the altcoins, or even the fiat currencies, is the expectation of future value. If a lot of people expect a currency to be valuable tomorrow, it will be valuable tomorrow. If those same people start to lose faith in the currency from whatever reason, it won't be valuable tomorrow. It is purely psychological. The times when currencies were backed up with gold or anything else are long gone.

[Mister1k]

The only thing backing up the altcoins, or even the fiat currencies, is the expectation of future value. If a lot of people expect a currency to be valuable tomorrow, it will be valuable tomorrow. If those same people start to lose faith in the currency from whatever reason, it won't be valuable tomorrow. It is purely psychological. The times when currencies were backed up with gold or anything else are long gone.

If you believe cryptocurrency for the long term investment then it will be valuable for one day and that will be really helpful for you. Unless if you wish to make the money by tomorrow thinking then buying top 10 cryptocurrencies than long term.

Backed with ventures silently may be but that too we cannot say surely it will be happen.

[fudster]

Can we say altcoins are backed by Bitcoin?

Generally its what I see here althgouh altcoins are paired with BTC, those altcoins depend to the price of BTC.  Prices vary to the kind of market, if the market is having a crisis just as how 2018 were then prices are backed by fear. When prices skyrockets, its backed by hope.

[mrdeposit]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

What USD backed up is backed up by what? This will eventually run out of place. What is valuable is valuable because we give it value. Cryptocurrency is one of them, and they are backed up with nothing like the others (except some stablecoins). The only difference among USD and BTC is that USD is belong to state, but BTC is the public money.

[OluwaTosin10]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

No they are not backed by calculations made by asic miners in the world.
Altcoins are backed by the project itself, the idea worth money and that is what we are willing to pay for.

People buy bitcoins because they want to buy something with it, they buy bitcoin because they feel the price will go up, people buy bitcoin because they want to send money to someone and it costs too much with western union. Basically bitcoin has utility that people are willing to pay for and that is why it has a price.

Ethereum is just like the same, people want to play games on dapp so they buy it, people want to use the blockchain to create ICO so they buy it (and fund the ICO) people want to use the blockchain to improve a identity government branch so they buy it. Basically all coins have some utility and their price reflects that utility for it or the support of people for that coin.

This best explains it all, altcoins and bitcoin are backed by the people or rather investor who has purchased and sold for various reasons

I think that’s why the continuity in growth and development of crypto currency will continue

[GreatBug]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

Unfortunately, but ASICs was invented and is used exclusively for Bitcoin mining. It is possible that in the future somebody will find some other way to use these powerful processors, but at the moment they can only do one thing.

[lobo13hf]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin? Are mathematical calculations performed by ASIC miners any useful in the real world?

It's not useful at all, and do you think it's worth while i can buy ethereum and litecoin directly without any problem or middle man? That idea doesn't make sense at all. I doubt why there was a dumb idea like that to be exist right now

[Aniwura]

Most of the old and already established coins, are still relevant, because of their uses, not just in the tech world, but also for the purchase of  commodities.
Talk for instance btc and ETH, which can be used to make any purchase where they are accepted. Therefore, they, including litecoin, are simply backed by commodities.

[CaMeRoNy]

Cryptocurrencies are not supported by anything but the trust of people and the project itself, its idea. Dollars are also not backed by gold, or rather they are backed up, allegedly, but there is not enough gold in the world to buy it for that amount of us dollars.

[Felipeo]

Technically altcoins are backed by nothing. Like in stable coin they have to register the coin from source that's why they have backed something valuable but I also don't believe that those will work anyhow.  And others project is just a idea which is backed by normal people the holders or the traders. There is nothing some people thing they have a idea and they want to share it and make some money. That's it. I think to solve this kind  of thing we need some regulations for good. Not ban or something but se soft regulations for both investors and projects owner both side.

[Herbert2020]

To explain more, for e.g., we hear that the USD was backed by the convertibility of this currency to precious metals until 1971. Now, what are altcoins backed by such as Ethereum or Litecoin?

fiat is centralized that is why it has to be backed by something, otherwise it becomes worthless. cryptocurrencies that are decentralized don't need that so you shouldn't compare them to each other.

as for ETH and LTC, their values are only based on purely hype and the pumps and dumps they get since although they may have some small utilities that they offer but it is not meaningful enough to give them any meaningful value.

Are mathematical calculations performed by ASIC miners any useful in the real world?

your question is unclear. ASIC is a general term referred to "Application-specific integrated circuit" and these machines do a lot of different things depending on what they are  designed to do. you can read this for more information: https://en.wikipedia.org/wiki/Application-specific_integrated_circuit