But Bitcoin isn't actually backed by anything physical—only the complicated mathematics underlying its blockchain technology and controlled supply. This ensures Bitcoin remains limited in supply and is resistant to censorship—which imbues it with some of its value.
Who is behind blockchain technology?
The first decentralized blockchain was conceptualized by a person (or group of people) known as Satoshi Nakamoto in 2008.
Where is blockchain data actually stored?
Where is the blockchain stored? The blockchain is stored on a network of computers (nodes) that participate in the validation and verification of transactions. Each node maintains a copy of the entire blockchain, which is continually updated as new transactions are added to the network.
How is Bitcoin backed by?
Backing a currency is done by the currency's issuer to ensure its value. Bitcoin and fiat currencies are not backed by any other asset. Currencies without backing can still maintain or increase in value.
What is the US dollar backed by?
Today, like the currency of most nations, the dollar is fiat money, unbacked by any physical asset. A holder of a federal reserve note has no right to demand an asset such as gold or silver from the government in exchange for a note.
Which blockchain platform does Bitcoin use?
Every Bitcoin transaction happens in the Bitcoin blockchain network, which is the digital space where Bitcoin mining and hash power generation occur.