Most cryptocurrencies, including Bitcoin, are not backed by gold, cash or a government. Their price comes from what buyers and sellers agree to pay, which depends on supply and demand, scarcity (Bitcoin’s supply is capped at 21 million coins), how useful the network is and how much people trust it. See the Bitcoin price and payment options.
What crypto does have is a blockchain: a shared record kept by thousands of computers, which makes transactions hard to fake or reverse. That security is part of why people value it, but it does not guarantee a price.
Stablecoins are the exception. Coins such as USDT and USDC aim to stay worth one US dollar, and their issuers say each coin is backed by reserves such as cash and short-term government bonds.
Because most crypto has no backing, prices can move sharply in both directions.
