/biz/ - Business & Finance

>>49387635
There is a difference if you turn on an electric stove in a house in winter or let it heat the air outside in summer.
The necessity to use energy to do something does not result in value by default.
The hot air produced only has value if there is an actual usage case for it.

When it comes to fiat currency we run into a somewhat different scenario of being backed by "energy"(oil) or supported by force. e.g. having to pay taxes in Euro or be jailed or getting bombed the shit out if not using dollar to pay for oil.

Backed by something in the realm of currency usually refers to the guarantee of being able to convert it into something, this is the case with the dollar and oil, as long as the petrodollar works. The traditional backing by gold is no longer used, and attempt to restart the practice (by ghaddifi, gold dinar) were met with military response.

Bitcoin is neither supported by guns or backed by energy, it simply needs energy to be created.