0 sats \ 0 replies \ @crrdlx 6 Sep 2023 \ on: Bitcoin is not backed by anything. And that's alright. bitcoin
I've always thought bitcoin is backed by something...it's backed by the code. That is, it is backed by the fact that it's scarcity, verifiability, and its rules are absolute.
Trust is a fundamental for money. We trust that the piece of paper has value, not because it is backed by anything other than a government's blessing. Still, we trust it has SOME value, even when that value is diminishing due to inflation.
I know the mantra in bitcoin is, "Don't trust, verify," but in a way, we can trust that bitcoin is backed by these absolutes the code ensures. To me, this distinguishes it from any other form of money.