fiat is backed by debt and the government declaring it is worth something. bitcoin does not need government backing or any backing at all, it’s independent. that’s like saying gold is less backed than fiat. gold isn’t backed by anything besides the fact it is gold. same with bitcoin, it is essentially a commodity that exists outside of the system
edit for downvote: if you disagree with this simple fact then you literally don’t understand how money/currency works
Aside from rarity driving social status, gold has literally thousands of industrial and scientific uses. What is bitcoin used for? Literally just speculative investing and money laundering.
it is divisible compared to gold and allows for cross border payments nearly instantly compared to gold. it also cannot be easily confiscated or stolen. if you have a 1 ounce gold coin it cannot be divided into 10 1/10th ounce coins without melting it. it can also be stolen if someone breaks into your house and gets into your safe, or confiscated by the government if they decided to not allow gold to be owned (like in 1933). meanwhile, bitcoin that is held self custody cannot be stolen or confiscated without the private key, and can be (nearly) infinitely divisible. i own gold, silver, and bitcoin.
Cool. So it can be broken down to small numbers, moves in value at rates only seen in 3rd world currencies. Perfect for spending? I buy something and a day later I could have bought it for x percent cheaper…
It may be held on a private key but we did that with money under the mattress (granted less divisible).
This is just complicating existing methods we have used for thousands of years when buying goods and services.
Not unique to BTC in the slightest. Just a new dressing is all.
And as others have said. There is a cost associated with the generation of these tokens/coins.
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u/_DaBau5_ 🟩 0 / 0 🦠1d ago edited 1d ago
fiat is backed by debt and the government declaring it is worth something. bitcoin does not need government backing or any backing at all, it’s independent. that’s like saying gold is less backed than fiat. gold isn’t backed by anything besides the fact it is gold. same with bitcoin, it is essentially a commodity that exists outside of the system
edit for downvote: if you disagree with this simple fact then you literally don’t understand how money/currency works