What is bitcoin backed by?
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This has been a misconception in the crypto space as most investors in the world find it hard to believe the credibility of bitcoin since the cryptocurrency isn't back by anything physical, despite gaining 6th most valuable currency in the world with a market capitalization of 190 billion some users are still skeptic about cryptocurrency.
Despite the common misconception that Bitcoin has no value, its market capitalization of around $190 billion suggests otherwise.
Like the US dollar and most other fiat currencies, Bitcoin isn't backed by physical assets in a vault, but instead by its value as a mode of payment.
The maths underpinning Bitcoin's blockchain contributes to its desirability in a number of ways. https://decrypt.co/resources/what-is-bitcoin-backed-by
Being a utility asset used by merchant to perform transaction online and physically with thousands of platform accepting crypto currency in exchange for goods also having a unit value above $10,000 not been controlled by centralized system makes bitcoin not to be subjected to inflation it has a control market supply and capitalization.
Generally users confidence in the use of bitcoin makes it more valuable as more investors and companies are adopting the crypto currency the more valuable it will become.
Hello friend, it is true that the value of bitcoin is based on the trust it has generated in people, and some commercial establishments have accepted it as a payment method just as many platforms allow transactions with this crypto.
See you later friend, successes 🤝
Thanks for sharing your thought 👏
Ultimately it is backed by faith, like other currencies.
It will become more valuable with time. ;)
It will for sure with time
We will probably have a new crypto asset that will outperform BTC in value. But BTC itself will hold its value.
I would have liked this publication to have been more extensive.
Thanks for stopping by @juanmolina will do my best next time.