SECURED. Not backed. The backing of crypto is whatever someone is willing to trade you to get it.
Security is the algorithm that solves the Byzantine General's problem. That is what uses energy. It says nothing about the value of the underlying transaction, other than you can trust it. You can trust cash in hand too.
SECURED. Not backed. The backing of crypto is whatever someone is willing to trade you to get it.
Security is the algorithm that solves the Byzantine General's problem. That is what uses energy. It says nothing about the value of the underlying transaction, other than you can trust it. You can trust cash in hand too.
We are likely mincing words and splitting hairs, I still think you're wrong.
It's "secured" by the distributed ledger, and "backed" by the carbon used to mine it.
You can't trust cash in hand, as the money supply can change in an instant as it's creation is centralised by a private entity