Bitcoin is backed by nothing. It has value only because it can be exchanged for other currencies or goods. This is no different in many ways to other currencies - eg: $, £, Euros.
The supply of Bitcoin is limited by the algorithms originally established.
Conventional currencies are normally controlled by a central bank. Their value is backed by some economic realities - inflation, interest rates, economic competitiveness, political credibility.
Bitcoin has none of this - the founder/inventor has neither been seen or heard of since 2011.
Most other assets are backed by some substance - property, mineral rights, brand, intellectual property etc. These can fluctuate in price depending on supply, demand, government regulation, legislation etc. Bitcoin is backed only by market confidence (or lack of it).
Bitcoin, launched in 2008, has grown to a value of over $1 trillion based purely upon a confidence trick - the belief that it can be traded for "real" assets. It is backed by nothing but confidence in a set of algorithms developed by its absent founder.
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