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So, Is Cryptocurrency Really “Backed by Nothing”?

Modified on Thu, 27 Mar at 8:45 AM

It’s true that cryptocurrencies are not backed by physical assets or government guarantees. But that doesn’t mean they’re “backed by nothing.” They are supported by:


  • Advanced cryptographic and blockchain technology
  • A decentralized system of users and validators
  • Transparency and security
  • Widespread adoption and usage


This is comparable to fiat money – just based on a different type of trust: not in a government, but in technology and collective participation.

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