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Bitcoin came close to  $9,000 today, and it is good for the crypto-world. I would like to talk about the age-old argument that non-crypto people will often throw out there is: "What is it backed by?"   I would love to hear your comments below! In the mean time let's look at the facts behind bitcoin!

1. No single entity or government controls bitcoin.

2. Bitcoin market cap is about roughly 80 billion.

3.  65 percent of bitcoin will never be used or circulated.

4. It is backed by radical transparency.

If you snatch away what drives the extrinsic value and its restricted amount what value remains? Does the asset have intrinsic value? I would love to come to the idea of radical transparency. I learned that from a wonderful video online. The fact that people can be transparent in a radical way with their transactions. So, why does the F.B.I. own 1.5 million of the bitcoin? I think they have to have their hand in the cookie jar for understanding sake, or perhaps control. All bitcoin transactions are transparent. Then why do people say that Bitcoin has no paper trail and cannot be traced? Is this the ignorance out there?

I would probably say there is a lot of fear that some transactions can not be traced. What is your opinion of that? Other people namely Warren Buffet says it is "F.O.M.O." That means the fear of missing out. This is creating the frenzy of new people coming on board and trying to understand blockchain technology. 

We all know gold would retain its value, usage, and resistance to destruction over the centuries and it makes it valuable by the many ways we can manufacture things and even its usage inside of smartphones. One has to wonder what value Bitcoin holds for us?

The United State's dollar is only backed by the federal government and what people can buy with it. That is a fact. You could consider the dollar a "claim check."

Some people will say Bitcoin’s only value is to be a "tool of utility." 
Bitcoin’s usage as a store of value is dependent on its how it is exchanged. I would like to say that most of us "trust its worth and process."

Does it hold political value? The value of defying the government system that is currently in place? It seems to lend itself toward libertarian views. Where gold is concerned it holds scarcity and more steel is created per hour than gold mined throughout all of history. Around 162,000 tons of gold are mined by humans and some gold that is 1000 years old is still in circulation today.  I can see the value in gold and bitcoin.

Gold has that intrinsic value just look at smartphones and you can find $1.50 of gold is in every smart phone, and the recycling of these smart phones create a "closed loop supply chain" for the re-incarnation of new smartphones. There are people on youtube melting down old phones for gold extraction.  Across the ocean from me, in a ultra-luxury hotel in Abu Dhabi they have a vending machine that is covered in 24-carat gold. Like gold bitcoin can also be mined, and is there scarcity? Well as more Bitcoins are mined by hardcore computing systems the harder it becomes to mine thus the scarcity is created. 

<b>My personal prediction:</b>
Bitcoin's late January fall was on its way and it is rising again this March. Why is Bitcoin important? Because as 
I feel Bitcoin sets the tone all others form of currencies to follow. This has happened and I feel the government has their foot on Bitcoin's neck, and they won't fully let go. I feel the government will squash bitcoin by the end of the year with harsh sanctions. I feel some cryptos will survive and others will not. I feel it will rally in April and parts of May then in June and July it will tank harsh. I had my own ideas about this, and that is all I am going to say about that. 

I would love to hear what you have to say!  I think many people have the idea that  bitcoin is more of an investment asset rather than a true currency.

What is bitcoin backed by? Isn't bitcoin a fiat currency? Comment below and keep it professional. I don't write on bitcoin often, and I did work in the gold industry for quite sometime. Enjoy! Upvote and Re-steem!