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by rhino369
3117 days ago
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>From an economic standpoint, Bitcoin is backed by generated electricity, computer hardware, and network trust. From an economic standpoint it isn't backed by anything. Bitcoin doesn't have a direct correspondence with any commodity. I can't turn in a bitcoin and get the electricity back. It's back by nothing. Monopoly money. So is the USD dollar and all other fiat currency. Bitcoin is a fiat currency without the fiat. |
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The labor of manufacture is perhaps why the fiat currency has value. This argument heads toward philosophy, but without the minting process (and its technological backbone), to some degree the dollar would be valueless cotton.
In nations where the fiat currency is printed on polymer, I feel that their fiat currency states something like, "Not only do we stand as the people of this nation and its currency, but our belief is such that we have printed the currency with a specialized ink on an advanced polymer."
Before you consider military or government or the world outlook, a belief like that is not worth nothing. That note has indeed been backed by something, and no way is it Monopoly money!