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Wednesday, 2 June 2021

What Is Behind The Value Of Bitcoin - Comparison of How Bitcoin and Fiat Are Backed

Similar to fiat currencies, Bitcoin’s value is not backed by a single commodity. Instead the cryptocurrency functions off of a supply and demand system. Two of the biggest factors behind Bitcoin’s value is its complicated mathematical construction and its a limited supply: What Is Behind The Value Of Bitcoin?

Bitcoin was the first currency to operate outside of the control of a single organisation with no reserves backing it. The currency has built an entirely new monetary system through community-run networks as opposed to a single entity driving it.

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from Bitcoin - A Peer to Peer Electronic Cash System https://ift.tt/2S2hRLO

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