How is this different from the 52 states (plus the rest of the world) borrowing dollars from the Federal Reserve, dollars, which too get printed out of thin air?
It's same everywhere, but before 1971 fiat money were backed by gold, so they were not printed out of nothing
If you can devise a system in which paper is provably backed by gold without counterparty risk, I'll give you a bitcoin
I might have misunderstood but how is counterparty risk just a gold backed currency problem?