>>13820059 Can someone explain Bitcoin? (notable in pb)
Fiat is worthless but it's used around the world, yet you condemn supposed valuelessness in blockchain currencies?
Have you read the whitepaper? Have you read the Cypherpunk Manifesto?
It isn't backed by physical currencies, but the charge is that previous stores of value like PMs don't have the ability to scale the global commerce network in a viable way. A solution to this fault was proposed: a cryptographic algorithm that rewards miners (someone who's machine performs mathematical computations) a portion of the valued asset for performing work, hence Proof of Work.
Alas, Proof of Work has its faults and the very solution is making its way on to the stage as we speak.
You aren't wrong that it has no physical backing, just like you've been told is an issue with Federal Reserve Notes. The caveat here is that FRNs proposed a solution to the coming digital age, where a return to a gold standard would inevitably see fault. To be specific, one should understand that Au nor even Ag can scale to the transaction speed or cost of transacting that the modern digital infrastructure demands. Therefore, a big gap has been left in the endeavor to fix the modern economic system:
What happens when we "fix the economy" with Precious Metals but attempt to scale it to meet the global demand of nearly instant transactions and staggering transactions per second?
You can correct commerce and fiat with Gold all you want, Silver, Palladium or Platinum even, but you will only make more obstacles if this correction forsakes the demands of modern intercontinental digital commerce infrastructure.
You will not send a bar of Au over an ocean to transact with your business partner in Sweden. You will not send a handful of Ag coins across the state to pay for your Wisconsin cheese.
Instead, you will use a digital system like we have currently, where you don't have this primitive, archaic wait and fee to do such a transaction. This time, however, the aim is to decentralize the ledger and to introduce immutable and trustless components that free us from this bullshit where we don't have custody of our funds so banks can pretend they're useful, where we don't have to deal with assholes selling or mining our data and where we don't have to ask anyone permission or pay exuberant fees for escrow services.
Blockchain has ALREADY revolutionized the world. (You) just haven't figured it out yet.