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You would still be forced to value the crypto at at least what you spent mining the crypto just like a gold mine has some specific difficulty(proof of work) to extract gold out of the ground.
You would still be forced to value the crypto at at least what you spent mining the crypto just like a gold mine has some specific difficulty(proof of work) to extract gold out of the ground.
That's a different concept to backing though. Gold backing means that the currency can always be traded for gold, which places a lower limit on it's value (at least in terms of gold).
Most crypto has no such backing so the lower limit for it's value is zero.
That's a different concept to backing though. Gold backing means that the currency can always be traded for gold, which places a lower limit on it's value (at least in terms of gold).
Most crypto has no such backing so the lower limit for it's value is zero.
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