If you hold fiat currency, that is, numbers it is the banking system, it is that system that ows you, not a particular bank. So if a particular failed bank sell their assets (loans included) to a different bank, it is that bank that will force the borrowers to repay their loans. And in order for the borrowers to be able to reply their loans they are forced to provide labour, services and products to the number holders. In that way, the debt, that the system owes to those holders (because they invested in debt whose quantity is represented with numbers) is paid.
Horseshit. Complete and utter horseshit. If you can't understand fiat well enough to understand why agencies like the FSCS exist, or why millionaires put their money in property/art/etc, then you clearly aren't in a position to argue any further on this point. You are too ignorant and misinformed to present any credible arguments against Bitcoin.
There's nothing to understand. Fiat currencies are numbers that are used to represent quantity of debt. End of story. In the OP I mentioned this as a way to demonstrate the difference between numbers that represent a resource and numbers that represent nothing but are just units of a number created in Nakamoto's imagination. I could have as well used numbers in brokerage accounts that represent quantity of shares in companies. Or numbers on invoices that represent the quantity of products or services. Some government agencies have nothing to do with that. This is just your to shift the discussion away from the point that clearly shows why Nakamoto's invention is a fraudulent investment scheme.