What are altcoins backed by?

[ned.ryerson]

Now technology is still at the very beginning of its development and so far in the modern world, it is not so useful. but it develops to be such

[talkbitcoin]

Now technology is still at the very beginning of its development and so far in the modern world, it is not so useful. but it develops to be such

actually the technology is pretty good and mature already and that is what cryptocurrencies are backed by. but the problem is that 90% of them are shitcoins not altcoins. which means they are worthless and their prices are only based on bubbles that they are in right now that needs bursting.

[encycrypto]

Ethereum and litecoin are backed by proof of work. When you're investing your power on something, it becomes valuable. Moreover, all the programmers that are working on a project make it more valuable. In short, alts are backed by code + PoW/PoS.

[SistaFista]

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?

True, in fiat currency, the money created and backed by physical gold reserve.
But cryptocurrency is different from fiat currency i guess. Bitcoin or other popular altcoins are not backed by anything, its value grow from the users.
I think the only backed cryptocurrency is some stable cryptocurrency such as USDT, it is backed by real USD.

[manfredmann]

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.

The value of the altcoins are not supported by any or backed by something that is valuable like gold or real money. Though there are other projects claiming that there tokens are reallly back up by something valuable but it is not a guarantee. The real value of the token depend on ita demand from the investors and this is how the market price of altcoins being dictated.

[Sanford]

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.

The value of the altcoins are not supported by any or backed by something that is valuable like gold or real money. Though there are other projects claiming that there tokens are reallly back up by something valuable but it is not a guarantee. The real value of the token depend on ita demand from the investors and this is how the market price of altcoins being dictated.

This is the only real problem of cryptocurrency value is simply not confirmed. If I understand what built the Bitcoin economy and why it grew so. That with all the other altcoins is much more complicated.

[jackflag]

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.

The value of the altcoins are not supported by any or backed by something that is valuable like gold or real money. Though there are other projects claiming that there tokens are reallly back up by something valuable but it is not a guarantee. The real value of the token depend on ita demand from the investors and this is how the market price of altcoins being dictated.

This is the only real problem of cryptocurrency value is simply not confirmed. If I understand what built the Bitcoin economy and why it grew so. That with all the other altcoins is much more complicated.

Cryptocurrencies are supported by teams, new technologies, products and investors' money. We must understand that these are very important factors.

[Badhuamin]

in my opinion it is still difficult if altcoin is equated with precious metals because Altcoin itself is in a different market and only people who understand crypto currencies can use it.

[chip1994]

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?

True, in fiat currency, the money created and backed by physical gold reserve.
But cryptocurrency is different from fiat currency i guess. Bitcoin or other popular altcoins are not backed by anything, its value grow from the users.
I think the only backed cryptocurrency is some stable cryptocurrency such as USDT, it is backed by real USD.

I agree with your opinion. I think the comparing of cryptocurrency and fiat currency is wrong because 2 currency is completely different. The cryptocurrency is the future of currency, it very useful and help people the most in using money in the global with fewer fees.

[5ensei]

It is backed by the underlying technology that created it. This to many people is why it is better than the USD as it is decentralised and cannot be used to bail out the bankers that destroyed the global economy years ago

[dimastegar]

USD backed by GOLD. All Fiat in the world, backed by gold. From the gold that each country has, money is made equal to the value of gold.
While Altcoin is a token or coin other than Bitcoin. Made by utility projects from a token and their products.

[jvper]

Just like bitcoins, generally speaking, altcoins don't have anything to back them up. Only demand for it. Just like fiat currencies nowadays.

[andika2018]

USD backed by GOLD. All Fiat in the world, backed by gold. From the gold that each country has, money is made equal to the value of gold.
While Altcoin is a token or coin other than Bitcoin. Made by utility projects from a token and their products.

I am believe you are wrong. USD not backed by gold anymore after bretton wood agreement. USD printed based on government trust and this makes The Fed can print USD paper money as much they like. Bitcoin backed by secure network and altcoin backed by the project.

[bitcoinm3ster]

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?

I think ALtcoins are backed by technology behind them and in the future, just some coins such as Bitcoin or Ethereum are really considered as rare metals

[libert19]

They are backed by community, price gets decided by the what buyers are willing to pay. That's why they say, buy coins which has community behind it, it's community which gives value.

[meanwords]

First of all, there are many types of altcoins to this day. So what are altcoins backed by? Let's say for example a utility token. They are tokens made by a company as a currency to purchase their products or services. So in order to do so, you have to buy their altcoin. Let's have another example, Ethereum. Ethereum is used as a gas in order to transfer tokens under its wings, without Ethereum, a transaction would be impossible. The idea behind the usage of an altcoin is what backs it.

[perla]

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?

I think some altcoin not backed with anything because there are stable coin and utility coin, you can find it's mean in google. And their price can be pure from supply and demand and it is pure from market.

[ronwewee]

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?

Why would you ever try to asked that? I think that is just for the back end developers of the coin in order to maintain the stability and robustness of their system that is used to protect their coins.

[justspare]

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 was backed by gold in the early days when the federal reserve was founded, but this is no longer the case. Money (fiat) is now backed by nothing that's why we have inflation rising in so many country even in the united states as of today. Altcoins are backed by nothing but what the community says it is, which is way more better than what the government say it is.

Moreover in realife, we do not have any back up for everything like some collectibles, for example. Collectibles are gaining its value from the demand. Similarly altcoins are getting their value from open markets based on supply and demand mechanism.

[encycrypto]

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 was backed by gold in the early days when the federal reserve was founded, but this is no longer the case. Money (fiat) is now backed by nothing that's why we have inflation rising in so many country even in the united states as of today. Altcoins are backed by nothing but what the community says it is, which is way more better than what the government say it is.

Moreover in realife, we do not have any back up for everything like some collectibles, for example. Collectibles are gaining its value from the demand. Similarly altcoins are getting their value from open markets based on supply and demand mechanism.

That's true; if there is any buy order, then it means there is demand. However, the collectibles do have a nice use case (like in the case of gold), which coins do not have.