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What is Bitcoin BACKED by? - Backstage w/Michael Saylor - Bitcoin Candidate Winning in ArgentinaLike the U.S. dollar and most other fiat currencies, Bitcoin isn't backed by physical assets in a vault, but instead by its value as a mode. Bitcoin is backed by a combination of complex mathematics and cryptography techniques that allow the protocol to operate. More specifically, Bitcoin uses a. Government backing can improve faith in the value of a currency among consumers, and it provides a big spender and collector of the currency. (Try paying your.