Comment Re:Dangerous is right! (Score 1) 858
This brings up a point that I have yet to find a satisfactory answer to: what is bitcoin actually backed by? Even the US dollar is backed by something, in a very indirect way, but bitcoins appear to be backed by nothing at all.
Iono, what's gold backed by? Not the industrial uses -- gold would be worth far less if its value was based only on what you can make from it. The real value comes from people attributing value to it, based on its properties. It's very resistant to corrosion, it's rare, and it's divisible. Bitcoins share these traits, which makes them valuable to some people. And by virtue of being valuable to some people, Bitcoins have value. (It's kind of a chicken-and-egg thing, but not really.)