Of course there are no promises behind fiat money, promises are worthless. Behind fiat there are contracts, collaterals and legal enforceability. That's why I know that the borrowers will always be forced to trade me the things that I can live off of for my fiat. They will always need fiat for their loan repayments. Fiat=loans(debt).
In bitcoin, you don't even have promises. All you have is faith that some anonymous people will trade things that you can live off of for your bitcoin. When people are driven by greed, because the prices go up, this faith based deal looks great. But at some point greed will turn into fear, and then you will learn the hard way what it means to base your business on faith. And none of the poems about bitcoin, blockchain, revolution and freedom will save you. No one can live off of database entries.
nope. fiat contracts are not about the debt. no one owes you anything. you holding a bank note is not some security to some laon somewhere that someone owes you.
take a bank note to a bank. they wont give you bread loaf value for the bank note. all they do is give you a crisp new copy of the same note., to replace the crumpled, dirty copy.
if you hand in a bank note as a desposit. your bank note then forms a contract where the bank can use your collateral to fractional reserve future debt where the bank profits on the returns. and if your lucky you might get 0.01% for letting them use your bank note you no longer hold(while its in their custody).
check out the zimbabwe dollar. no one had security, the government were not liable to honour value.
the only thing that makes fiat useful (where by it has no benefits) is because of tax/minimum wage laws that force it into utility.
if people had the choice they would not want to use fiat because the moment they receive it, they have lost value.
either via tax or inflation.
people would prefer to use something deflationary, where just holding it independently increases the value.
if it was not for tax/min wage laws, no one would use fiat (its why zimbabwe dollar is now dead, its why people dont use euro's in america)
american dollar is only viable in america because of tax/min wage laws forcing utility. it has nothing to do with any dreamed up liable value or security promise. because there is no liability/security promise.
if something happened to the dollar. what do you think you would get.. dont say promises security liability. actually explain what you would get in return.
the only answers would be:
a crisp new bank note swap for crumpled note. meaning no difference.
a bag of heavy copper coins that might (scrap rate) get you more value, but no one likes to handle them so the effort outweight the value
a bank note is not worth the value its printed on.
yet bitcoin has an underlying value of ~$35k(eastern europe/west asia) $85k(expensive countries)
the price is currently near good value.
yes when bitcoin was ~$70k it was 2-3x value and seen as a premium. but its much better than the dollars 2-26x devalue