Bitcoin is not "backed by" anything at all. This is a good thing.

Long ago people used shells, glass beads, salt, wheat and similar items as "money" until gold and silver coins came along. The new superior form of money replaced the inferior forms.

Along with gold came goldsmiths. It turned out that rich people found gold to be inconvenient because gold is dangerous and heavy to carry around in significant amounts. Leaving gold at home was dangerous and required expensive security. The goldsmiths already good physical security 24/7. So, people would deposit their physical gold with their goldsmith and they would receive "gold backed" banknotes as receipts for physical gold in the vault.

KEY: Gold "backed" notes meant the bearer could take them to a branch of the issuing bank to redeem them for the amount of gold printed upon each note.

Banknotes "backed by" silver could be exchanged for the amount (weight) of silver printed on the notes.

​

It turns out, when somebody claims their money is "backed by" something, it isn't. For example, 1971 - no more pretending each dollar is "backed by" anything at all.

The brainwashing propaganda now tells us our money is "backed by":

  • faith in the government
  • military might
  • men with guns
  • the 'economy'
  • other such nonsense

Look at any recent Federal Reserve Note. It does not claim to be "backed by" anything. It isn't.

You cannot take your Federal Reserve Notes to any bank and exchange them for any amount of "faith," military might, men with guns, "economy" or anything with tangible value. This is because they are not "backed by" anything at all. This is reality.

The US Dollar is not "backed by" anything at all. The US Dollar is a scam.

Meanwhile, gold is not "backed by" anything at all. And people have been okay with this for thousands of years.

Similarly, Bitcoin is not "backed by" anything at all. This is a good thing. Bitcoin is not a receipt for anything; a Bitcoin IS the scarce asset it represents.

​



Submitted November 24, 2023 at 01:24AM by Umpire_State_Bldg https://ift.tt/DKw01Lr

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