Bitcoin is not backed by anything

bitcoin_logoThis is a common objection I hear when people are trying to find reasons not to jump into bitcoin, or claim bitcoin can’t succeed.

Besides the statement that “bitcoin is not backed by anything” being untrue, lets not even go there for a second.

Why does it need to be backed by something like a government or commodity?

Only a currency that holds no value in of itself needs to be backed by something of value.

Does gold or silver have a backer? No, and they have been the longest standing form of money in history. Gold is not created by government decree nor can it be created out of thin air. Gold has value because it is a finite resource that has all the qualities of being “money”.

The same goes for Bitcoin. You can see in this video that bitcoin can even outperform gold in todays digital age. 

Now, while we are at it, lets address the statement being entirely unfounded..

Bitcoin is backed by now the largest grassroots network of computing power in the world. A recent¬†Forbes analysis puts the bitcoin network at 256 times the top 500 supercomputers combined! And, Bitcoin’s computing power is growing significantly every day.

Do I really need to say more?

There are countless other reasons why I can argue bitcoin is backed by something, like math. But, I think the most important thing it’s backed by is everyday people, like you and I. Anyone can use the bitcoin protocol – it never shuts off, it can’t be frozen by a central authority, it has no age or race disparity, and most important it’s free for anyone to use.

Still learning about bitcoin? Want to share more information with others? Check out this new Bitcoin basics video.

What else do you think Bitcoin is backed by?

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