user90080: This looks like a complex thing but I am trying hard to understand it. Why would any one in the world honor a crypto currency till it is backed by a government with monetary value? How does a crypto currency get its monetary value? Who will back it?

user5273: Currencies get value from demand and supply not from governments backing them. Currencies have existed long before government's started stamping them out in their own name. The demand for a currency comes from the utility that it offers as a medium of exchange. Even pre-historic humans went out of their way to create currencies because they were useful.
Bitcoin has value because it is useful as a global, irreversible electronic medium of exchange and store of value. That is why it is in demand.

90080: <p>This looks like a complex thing but I am trying hard to understand it. Why would any one in the world honor a crypto currency till it is backed by a government with monetary value? How does a crypto currency get its monetary value? Who will back it?</p>
 5273: <p>Currencies get value from demand and supply not from governments backing them. Currencies have existed long before government's started stamping them out in their own name. The demand for a currency comes from the utility that it offers as a medium of exchange. Even pre-historic humans <a href="https://nakamotoinstitute.org/shelling-out/" rel="nofollow noreferrer">went out of their way</a> to create currencies because they were useful.</p>

<p>Bitcoin has value because it is useful as a global, irreversible electronic medium of exchange and store of value. That is why it is in demand.</p>
