What are fiat currencies backed by?

In contrast to commodity-based money like gold coins or paper bills redeemable for precious metals, fiat money is backed entirely by the full faith and trust in the government that issued it . One reason this has merit is because governments demand that you pay taxes in the fiat money it issues.

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What makes Bitcoin tangible?

Why is there a tangible value behind cryptocurrency? – Quora. The majority of cryptocurrecy is mined. The tangible part is how much electricity is needed to mine one coin of a given coin . For example at this stage to mine one bitcoin today is close to 5000 dollars in electricity, maybe a bit more.

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