Cryptocurrency Q&A
What is backing crypto currency?
What is backing crypto currency?
Lorenzo
Mon Nov 04 2024
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7 answers
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I'm trying to understand the concept behind crypto currency. Specifically, I want to know what is supporting or backing these digital currencies. Are they backed by any asset or is it just based on people's trust in the technology?
7 answers
SamuraiSoul
Wed Nov 06 2024
This mechanism is designed to provide stability and trust in the currency.
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Sara
Wed Nov 06 2024
In the case of Bitcoin, gold, and fiat currencies, there is no underlying asset that backs their value.
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Federico
Wed Nov 06 2024
Despite this, these currencies continue to be used and traded globally.
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Maria
Wed Nov 06 2024
Currency backing is a process employed by the issuer of a currency to guarantee its value.
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CryptoAlchemy
Wed Nov 06 2024
Bitcoin, in particular, has gained significant traction due to its unique properties.
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