"That a Fed official would denounce cryptocurrency as unbacked strikes me as the height of irony. The dollar was once “backed” by the secure asset of gold, but that system was finally abolished by Richard Nixon’s Fed in 1971, lighting up inflationary fires that lasted a full decade. Since then, the banking system has moved from crisis to crisis, from the S&L debacle of the late 1980s to the near-death experience of the entire financial system of 2008.
This is not an excellent track record.
It is not a coincidence that Satoshi Nakamoto released his White Paper on Bitcoin in October 2008. It became very clear that we needed a new system of sound money that could not be manipulated by the very regulators and central banks that unleashed the crisis. Bitcoin was proposed as a sound money solution.
As for backing, Bitcoin is backed by the use value of the distributed ledger in the underlying technology of the Blockchain. What’s more, that backing has been tested. The march of BTC value from $0 to $10,000 in nine years reflects a market judgment, not anyone’s imposition, dictate, or regulatory plan."
https://fee.org/articles/fed-official-decries-bitcoin-as-not-backed/
This is not an excellent track record.
It is not a coincidence that Satoshi Nakamoto released his White Paper on Bitcoin in October 2008. It became very clear that we needed a new system of sound money that could not be manipulated by the very regulators and central banks that unleashed the crisis. Bitcoin was proposed as a sound money solution.
As for backing, Bitcoin is backed by the use value of the distributed ledger in the underlying technology of the Blockchain. What’s more, that backing has been tested. The march of BTC value from $0 to $10,000 in nine years reflects a market judgment, not anyone’s imposition, dictate, or regulatory plan."
https://fee.org/articles/fed-official-decries-bitcoin-as-not-backed/