That's why a cryptocurrency can't be backed by gold and be decentralized. But there should be something that can backup a cryptocurrency and still allow it to be decentralized. That's really the best type of situation because then the cryptocurrency has an objective value which is whatever the value of the underlying asset is. With bitcoin since it is backup by nothing, then it has no objective value. So nothing is really stopping it from going to zero except peoples faith and trust in it.

Now alternatively, consider oil. Oil has uses. it makes gasoline which runs cars. It has an objective value and people are willing to pay for it. If they lost faith in gasoline due to high prices then they can buy an electric car but that doesn't meant that gas price goes to 0. Likewise, a cryptocurrency that was backup by a decentralized asset should be able to maintain its value no matter what people thought about it whether it was too high price or not. Whether they used an alternative or not.

Except that bitcoin requires computers and the internet. Fiat and gold don't depend on any of that. And until people can buy everything they buy with fiat using bitcoin then "I don't think so".


You seem to agree with fiat being not backed up by anything. not sure why. you do realize that when fiat is backed up by nothing they can just print it at will, further devaluing it and thus your paycheck. everything you buy will cost more. because prices will go higher to compensate for the reduction in purchasing power of the dollar. your paycheck though won't get bigger to the same degree. so you might need to gamble some of your money in the crypto markets maybe buy some bitcoin and hope it goes "up".