Should ₿itcoin Be Backed By Something? 🤔

In this video, the problems with crypto/coins/tokens that are backed by something else like Gold, Silver or US dollars is discussed in detail.

Something-backed tokens must rely on a trusted third party to store and custody the underlying asset, as well as facilitate redemptions (i.e. conversions of the token into the underlying asset). This itself is a huge attack vector: if you want to attack the token, you need only attack the custodian or other centralized third party.

The failure of the gold standard and Nixon suspending the USD's convertibility into gold is a perfect example of failure mode.

If you own a something-backed token, you need to trust the issuer to keep its promises (unlike the US did to France)-- and you also need to trust that the issuer itself will not be pressured by a stronger outside party to do the same thing.

Trust, trust, trust. Why in the world would we ever want to reinvent this kind of system that has failed again and again?

When you hold your own ₿itcoin private keys, your ₿itcoin is a bearer asset that cannot be turned off, frozen, or deactivated by anyone. Once you hand them over, to an Exchange for instance, anything goes and you are no longer in control of your ₿itcoin.

You also need a native bearer asset like BTC to pay the ₿itcoin miners. If they were being paid in USD or physical gold, that would be another attack vector.

At the end of the video, I discuss how ₿itcoin has no competitors as a digital bearer asset. Ethereum's premine, its move to proof of stake, and its repeated hard forks makes it unsuitable.

Original Video by Trader University: https://www.youtube.com/watch?v=E6pGmGESjHw

🦁 www.MAGAlionHAT.com 🦁
-------------------------------------------------------------------------------------------------------
Enjoy the content I provide? Please help support this renegade channel with PayPal! 💰
PayPal: [email protected]

Or, if you like you can Buy Me A Coffee: https://www.buymeacoffee.com/MAGAlionHAT

Crypto wallet addresses below. If you have a type of Crypto you wish to donate that I don't have a wallet for, email me and I will create one! 🤑

It keeps me afloat while I'm working to produce informative and entertaining videos while finding and providing gems from other creators for you to enjoy! 🤗
Any donation would be GREATLY appreciated! Thank you and God Bless! 🙏

Bitcoin (BTC):
bc1q63xshh2c2u4tvc6jksl5crlhtp554qu0l4nn8j

Bitcoin Cash (BCH):
qqms8t79e6rk5z5djad360d38y9kkqnh7yfpxkkuy5

Bitcoin SV (BSV):
1F6oH8qkMjswViJSwq965gRivE3DqKuJKC

Litecoin (LTC):
LgxrUdjUxnmFGLtsAbh76C3aAm3dXAGDFV

Dogecoin (DOGE):
DGn5bkC9WM1E2oM79HWiYoVxE3rHuEGkoS

Ethereum Classic (ETC):
0xC03AEe5333D50a20810e1A7585D9BB3f77E0B773

Ethereum (ETH):
0x27d5493Ac22D56B68cF36F5f77594BDC8e6FAc5E

Shiba Inu (SHIB):
0x27d5493Ac22D56B68cF36F5f77594BDC8e6FAc5E

Chainlink (LINK):
0x27d5493Ac22D56B68cF36F5f77594BDC8e6FAc5E

Polygon (MATIC):
0x27d5493Ac22D56B68cF36F5f77594BDC8e6FAc5E

Ripple (XRP):
rwvGofsMZQMyqro9YPe7swpo6C6Kagpg2e

VeChain (VET):
0x6410f2e05fEF8169bd1A6935884B9D4D56D9017b