But what about fiat? It's just a piece of paper that is printed by government and with no backing at all
well, for example, the fiat dollar the USA uses is backed by mucho superduper gigahugely amounts of military power.
This is very much true whether we deny it or accept it.
From my childhood I have heard zillions of time that US economy is on the decline and US dollar will collapse very soon. While in reality, US is still the super power with USD ruling the world.