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Erik Orrje addressed criticism #2378.
#2378·Benjamin Davies revised 6 days ago“Bitcoin is not backed by anything” can also be stated as “Bitcoin is not redeemable in anything”.
“POW” or “computational work” or “encryption” are not things you can redeem if you own bitcoin.
This is in contrast to gold-backed currencies, for example, which are currencies which can be redeemed in gold. The United States Federal Reserve Note only became fiat when it was no longer redeemable in gold.
In a gold standard society, gold doesn't need to be backed by anything. The same would be true for Bitcoin and Zcash.