[appleflaxen]

you are exactly right, but all the same criticisms apply to fiat.

the difference between fiat and bitcoin is that bitcoin cannot be arbitrarily manipulated by the state.

there is a fairly large, latent inflationary pressure on the dollar in the form of the national debt that has no credible prospect of reversing. the dollar has been a historical safe haven, but there is a reason that china is trying madly to diversify its foreign currency reserves.

[vkou]

The difference between fiat and bitcoin is that neither the IRS, nor my landlord, want to be paid in bitcoin.

There is a large, guaranteed demand for fiat, in the form of taxes. Everyone you transact with, at the end of the year, pays taxes.

There is no large demand for bitcoin as a currency. There is demand for bitcoin as a store of value. It's economy is largely speculative.