https://www.cultofmoney.com/is-crypto-backed-by-anything/
it is very important to understand that currencies, is not money.
the last paragraph, says it all.
what backs and underwrites paper, is money.
consider the following > based on the 120 odd year trajectory of the mining schedule of bitcoin, followed by the transaction fee driven revenue support model thereafter, what is the possibility of using a basket of stuff to place a floor value to bitcoin?
1.S.1 - it is important that we note prior to the extremely stupid move of 1971 to delink the reference peg of gold to that of the USD, where thereafter you can see the issuance of the USD based on the full confidence of the Federal government of the United States to conduct prudent monetary policy.
1.S.2 - the impending "liberation day" launch of tariff-driven deal making can be only described at best, as one of the most speculatively risky moves made of the US since 1971, because the short-term effect is essentially inflationary. T-bills and US notes will see recalibration in the coming months and years ahead.
1.S.3 - family offices, institutional funds are quietly rethinking one of the most important long term strategic implication; namely, beyond the current adminstration, based on the possibility of risk, it is now possible that either side (Democrat, Republican), may display sudden and sharp change in macro-economic policy, either within a single or 2 elected terms. thus, purely from a perspective of risk diversification, investment portfolios will need substantial currency-denominated recalibration, in addition to the usual themes of sector/industry, sovereign risk*, etc.
* sovereign risk (credit standing) will now have to be separate and distinct from immediate or near term currency trade-weighted valuation cycles.
I think it is notable to observe that since 2006, 2008, (various cycle-driven economic crisis) drove the adoption of digital currencies such as bitcoin from a largely "retail" demographic base, the impending shift of how institutionals view their risk profile, is playing out as events unfold at a pace which I had not anticipated prior.
