The bitcoin is backed by the work to find it.
This limits the rate of new bit coins.
In contrast, the rate of new dollars in recent years that are getting printed out and sent to the connected has been staggering.
What a dollar can buy is dropping as a result, and those farther from the connection are hardest hit.
This makes a demand for a currency that bypasses the taxation of printing.
I have yet to invest the time to get into crypto, but I can see a value to it.
Quote:
Originally Posted by wdfifteen
I don't see what crypto is backed by either. It looks like another collectible craze to me, like Beanie Babies. As far as I can see, it has value only because it is a limited commodity and people are competing to buy it. I disagree that the dollar only has value because we agree that it does. The dollar is backed by the US Government, and the US Government owns gold, land, physical property of many kinds, and has taxing ability. We can disagree about the value of the dollar, but it is backed by something tangible.
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