“But, it’s not backed by anything?”

Too Long; Didn't Read

<span>O</span>ne of the most common arguments against Bitcoin is that it is not backed by anything. That it’s price is just speculation. But what does it mean for an asset or a currency to be backed by something in the first place? To find this out, we first need to defy what it means for something to have value. After all, if something is to be backed by something else, that something else better be something of value. Like gold. Why does gold have value? Is it valuable because you can make jewelry out of it or is jewelry made out of it because it’s valuable? You can’t eat it and it’s not very good for any other basic human need. So what makes it valuable?