What is Bitcoin Backed By?

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Wondering what bitcoin is corroborated by? The answer is zero during all, though that’s indeed not a bad thing. Like many complicated currencies bitcoin is not corroborated by bullion or other changed commodities. In a sense, bitcoin’s value is subsequent from a common faith that bitcoin has value. The same is loyal of a American dollar, a British pound, and a European Union’s euro, as good as scarcely each other complicated currency.

Historically speaking, adult until Aug 15th 1971 many currencies were corroborated by a commodity, customarily bullion or silver. In fact, before a invention of paper money, many currencies were coins fashioned from changed metals. Further, following World War II and adult until 1971, many of a world’s countries operated underneath a Bretton Woods agreement, currencies were corroborated by gold.

The Bretton Woods Agreement and a End of Commodity Backed Currencies

In sequence to know a stream system, it’s critical to know a aged system. Under a Bretton Woods system, executive banks would be means to trade bullion among one another, and currencies would be tied to a value of gold, and pegged opposite one another. When an sell rate is pegged, this means a value is set. So if a American

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