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The problem with money issued by any government is that its only value is what those in charge decree.
The government, in my judgment, cannot create money; the government can give its note, like an individual, and the prospect of its being paid determines its value.
The value of money comes from the private sector in the form of price for product, services rendered, what people are willing to pay for something they want or need. That's where value happens. Government has nothing to do with that.
I do not understand where the backing of Bitcoin is coming from. There is no fundamental issue of capabilities of repaying it in anything which is universally acceptable, which is either intrinsic value of the currency or the credit or trust of the individual who is issuing the money, whether it's a government or an individual.