Is bitcoin backed by anything

The real problem with bitcoin is its a game of artificial scarcity-anyone can make up any metric to limit the number of units of its currency.It has expanded the limits on our traditional conception of money.This is so you can get an overall idea of what to expect with Bitcoin.

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Pingback: Fed Interventionism Creates Bubbles Like Bitcoin - Smaulgld ().Like most modern currencies bitcoin is not backed by gold or other precious commodities. Bitcoin is in this sense not backed by anything.Or you can support by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM bullion ads on the site.

The same logic applies to not owning Bitcoin if the price goes down.Apparently, not everything revolves around bitcoin in the cryptocurrency world.Skeptics of bitcoin often point to the fact that it is not backed by anything and.

Crypto-currencies and the Fate of the Dollar - The Daily

That alone says something about where we are in its evolution.Bitcoins are only useable and valuable where there is electricity and an Internet connection.Each Casascius Bitcoin is a collectible coin backed by real Bitcoins embedded inside.You can exchange the dollar for anything else, including gold. However, it is backed by bonds.

Is Bitcoin Halal Series: Part 1 - Currency - Islam and Bitcoin

We use cookies to ensure that we give you the best experience on our website.Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.Yes. I am confident that Bitcoin will grow in adoption, trust and stability for many years to come.It is the first article that impresses me with a clear argument against jumping on the Bitcoin bandwagon.The easiest place to buy, use, and accept bitcoin, ethereum, and litecoin.It is perhaps not surprising that Casares hails from Argentina, whose governments over the past decades have shown a ruthless disregard for the value of the peso and have manipulated the currency to maintain power at the expense of public and private savings and livelihoods.

Silver Backed Cryptocurrency. the idea that some investments are not backed by anything tangible can be worrying,.Yes, ATMs have changed retail banking and algorithms have altered trading.The question has dogged the digital currency since its inception nearly a decade ago, and recent developments raise it anew.Private electronic currencies will gain validity and users and will compete better with fiat government and fiat private digital currencies, like Bitcoin if they are backed by something of intrinsic value.In contrast, an attractive feature of Bitcoin is its use is voluntary and people are free to believe in it and ascribe value to it.

It was for this reason that the idea of investing or going further would be counter productive because im essentially throwing my money into theoretical currency on the supposed promise that it is safe.Bitcoin is certainly causing conversations and someone is going to be left holding something worthless.When one uses Bitcoin to buy tangible items like pizza or clothing, the merchant has to send the goods somewhere to a physical address that is attached to the person ordering the goods.Bitcoin and digital currencies are one wave of change that will alter how we understand money and how it is used within and across borders.For the same reason it would be difficult to pledge Bitcoins as collateral.Currently restaurants taking Bitcoin for payment might see the price of meal rise 100% or drop 90% during the course of serving its Bitcoin diners.There may be limited amounts of Bitcoins but there are unlimited amounts of dollars with which to buy them.

Past security breaches on bitcoin exchanges, as well as the limited options for using bitcoin in transactions, only add to the skepticism.

Is Bitcoin Money? - Macro

Buy Silver From Click Here To Buy Silver From Golden Eagle Coins.While I am in favor of consumer choice and competing currencies, including electronic currencies, I would not choose Bitcoin.Other Bitcoin exchanges have also been subject to denial of service attacks.

They feel that my fascination with crypto currency has taken on a life of its own and will lead to both financial ruin and a lack of credibility (as the bubble bursts).If the price of Bitcoin fluctuates wildly up or down constantly during short periods of time it can not be viewed as a reliable store of wealth or even a reliable currency.I have been back and forth on this subject and have decided to not delve any deeper than I already have with bitcoin.

Dig a bit deeper, however, and it becomes clear that gold itself has no intrinsic value.For hundreds of millions in the emerging worldwide middle class, those are not givens, and bitcoin and its digital brethren offer alternatives to too few banks and erratic financial systems managed by unreliable governments.Bitcoin, however, is only anonymous if it is bought surreptitiously and not used in mainstream commerce.BTC would be cost prohibitive as the interest rates would be too high.Rather, Bitcoin is really a payment service dressed up as a digital currency.Just wait until the proverbial poo hits the fan and western capitalism starts collapsing, opportunities dry up, pension funds get raided and people start awakening to the fraud on a governmental level.

Photoshop, for example, can be used by professional photographers to manipulate photos.For much of the 19th century, paper money was held in ill repute because it seemed so ephemeral and detached from value that could be easily recognized: land, gold, size of armies.

Certainly the first users of Compuserve and America On Line must have felt the same way.Visit The Smaulgld Store Check out the Smaulgld reading and listening favorites at the Smaulgld Store at Amazon.It is possible that self interested Bitcoin holders bought lots of them to drive up the price to attract other buyers.Smaulgld Gold Buying Guides Smaulgld gold buying guides provide detailed information about a variety of gold products including the mintages, gold content and history of gold coins bars and rounds.A dollar is fiat c. and has been off the gold standard since Nixon.In order to be a viable currency, Bitcoin must be a reliable store of wealth.How to Buy Your First Cryptocurrency Coins (Ethereum, Bitcoin,. think of Ethereum like a more advanced and sophisticated Bitcoin backed.An individual who leaves their savings in BTC rather than national currency and gradually increases his buying of goods and services that are priced in these units will perceive a lessening of BTC price swings and an increase in the odd swings of paper instruments.

But this time, I am not offering feedback to defend my position or promote debate.

A 'Base' Price of Bitcoin at US$180,000 -

Gold and silver in contrast are assets with tangible value other than their use as currencies.Am working on an economic piece on how the Fed destroyed the economic prospects of the young.Chinese Silver Panda Coins For Sale Click to buy Chinese Silver Panda Coins at Golden Eagle Coin.Jim Rickards on Why Bitcoin Is a Legitimate Money. the economic commentator also shared some thoughts on Bitcoin.Further, many Bitcoiners fancy themselves as political activists that are going to bring down the the Fed or New World Order by using a Bitcoins to order pizza.When and if that dynamic changes I think may will flee for the exits including the early adopters.