Quote:
Originally Posted by AdultPornMasta
I replied with a question:
"What backs the US dollar?"
That threw the questioner for a loop I'll tell you. He almost but not quite got it.
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Your "friend" is a dolt.
1) The USD used to be backed by both gold and silver. At one time it WAS backed by something tangible. Unlike bitcoin which has never been backed by anything and was in fact created by a hacker.
2) The USD is the petrol dollar, which alone makes it worth something until oil is bought and sold via another currency. When governments can buy and sell oil in bitcoin, then it can be a contender.
3) The USD is currently backed by the promise of the Federal Reserve, which is arguably the most powerful group of individuals on planet earth.
4) The USD is backed by the confidence of every human, business, local bank, central bank, and government in the entire world.
There is an enormous difference between the fiat USD and a fiat cyber currency.