TD₿: What Is Bitcoin Backed By? (a thread) by Eric Yakes
TL;DR Bitcoin does not require backing, it has inherent monetary properties superior to any other form of money that has ever existed.
Hey Bitcoiners,
A lazy rebuttal you probably hear often is when Bitcoin critics claim Bitcoin is not money because “iT’s NOt BaCKeD bY ANyThinG.”
This retort typically comes from the same people who think the dollar is still backed by gold. It also completely misses the point that Bitcoin doesn’t need to be backed by anything because it’s perfect money.
You hear this argument be made by goldbugs a lot. Gold has a small amount of utility as an industrial metal, but ~90% of its value comes from its monetary premium. They claim Bitcoin is not money because it has no utility.
Bitcoin doesn’t need utility or to be backed by anything because its inherent superior monetary properties speak for themselves. Its utility comes entirely from its monetary premium due to it being the best form of money on the market today.
Fiat needs to be backed by something like commodities or the military-industrial complex in order to coerce people into using it because it lacks the strong monetary properties to stand on its own.
This Twitter thread by Author Eric Yakes, summarizes why Bitcoin does not need to be backed by anything to be sound money (12/29/2021).
Only Bitcoin incentivizes people to voluntarily adopt it due to its superiority over every other form of money in existence today.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Money is not about creating “utility.” It’s about creating of store of value -> medium of exchange -> unit of account. People focus too much on “the technology” and not enough on the monetary properties that make Bitcoin revolutionary.” - ₿ Isaiah, Bitcoiner and Founder of the Cleveland Bitcoin Club
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