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A currency being backed by something means you can redeem the currency for that thing.

When the dollar was backed by gold, you could go to the issuer of dollars and demand gold. The dollar had value because gold had value, not because there was stored energy or the accounting system or anything like that.

With Bitcoin you have no particular right to go to the miner and demand energy or "blocks". So it is unbacked just as fiat currency now is.

Moreover, the energy used to create Bitcoin does not confer value. This is a variation of the labor theory of value, which has rightly been discarded for subjective theory of value - see my longer post in this thread (replying to Sec Yellen) for a more complete explanation.

Felipe 2y ago

I don’t need to demand “a block” from miners, as they were compensated for securing my transaction.

How’s that not value for value?

You’re right, it’s not the energy that gives Bitcoin value, but the miners who play by the rules of its protocols, alongside those who utilise the service they provide.

Who is anyone to say Bitcoin has no value to the people who are using it daily to survive in SE Asia, Africa and South America?

Why does it have to be backed by something redeemable when what I redeemed is the good or service I got for the Bitcoin I spent?

“SOMEBODY MUST GIVE IT VALUE SO I CAN GIVE IT VALUE”.

That’s total none sense.

Bitcoin separates state and money. A decentralised medium of exchange is what the world needs.

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Discussion

a source familiar with the matter 2y ago

US Federal Reserve Notes "have value"

Euro notes "have value"

Who are you to tell a billion people in the Western world whose use these notes every day that their notes don't really have value?

Well, all you need to be is somebody who can think & realize the notes are an accounting unit divorced from reality. The same is true of Bitcoin.

Felipe 2y ago

How is the same true for Bitcoin when it is decentralised in nature compared to the currencies you are mentioning?

a source familiar with the matter 2y ago

It's a decentralized accounting unit which does not track any real thing

Felipe 2y ago

It tracks monetary value energy in cyber space being moved from one owner to another.

Felipe 2y ago

Forgot to remove the word “energy” before I posted.

a source familiar with the matter 2y ago

Vibe

Felipe 2y ago

Yeah, the Saylor Vibe.