The same thing that every other currency in existence is backed by. The belief by people in a society that someone will give you something you need/want in exchange for it.
That same thing also applies to gold and silver. Absent the belief by society that it's worth something, it's nothing more than a shiny rock. Gold's value doesn't come from it's industrial applications.
What's it backed by again? I forget...
The same thing that every other currency in existence is backed by. The belief by people in a society that someone will give you something you need/want in exchange for it.
That same thing also applies to gold and silver. Absent the belief by society that it's worth something, it's nothing more than a shiny rock. Gold's value doesn't come from it's industrial applications.
PM has intrinsic value...as well as industrial value. Something all digital currency lacks.
But you are correct...the only thing that gives it value is beLIEf that it has value.
Unless it is a DePin currency, then it has actual utility.