This is something I see flung around a lot, even by prominent bitcoiners.
For it to be backed by something that means there is some specific commodity or asset underwriting its value. And, theoretically, you can exchange the currency to this underlying asset.
Can you convert Bitcoin into energy? No. Can you convert Bitcoin into code? No. Can you covert your Bitcoin into proof of work? No. There is nothing "underneath" Bitcoin that you can exchange it for.
Bitcoin is not backed by anything, and that is completely fine, it doesn't need to be. "Backing" is a way to provide IOUs and debt currencies with a certain level of safety and security, to the people who hold them. Bitcoin is not an IOU, it is a bearer asset. If you have a Bitcoin or an ounce of gold, you holding it is not a liability to anyone else. You are not relying on anyone else. It doesn't need to be backed in the first place.
When people ask "what is Bitcoin backed by?" you don't need to be defensive and drum up some nonsense thing like energy or proof of work.
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