If Bitcoin isn't backed by anything, Then what is the energy being used for?
Doesn't this imply that Bitcoin is backed by the work effort and energy expended to secure the network? and isn't that what the block rewards, are rewarding people for doing?
Sure this is more of a token system than an actual currency, but at least they aren't fractional tokens that claim to be backed by actual currency and then inflate themselves by a factor of 100X, proviing that 99% of fiat currency was generated out of thin air, with zero work effort, or power used.
Question!
If Bitcoin isn't backed by anything, Then what is the energy being used for?
Doesn't this imply that Bitcoin is backed by the work effort and energy expended to secure the network? and isn't that what the block rewards, are rewarding people for doing?
Sure this is more of a token system than an actual currency, but at least they aren't fractional tokens that claim to be backed by actual currency and then inflate themselves by a factor of 100X, proviing that 99% of fiat currency was generated out of thin air, with zero work effort, or power used.
OH, and it's deflationary.