[qgin]

The guns really do back the USD.

It's true that value is set by supply and demand for both crypto and USD, but there's a key difference.

Yes, crypto and USD both have a limited supply (at any given time). But the demand for crypto can fall to zero with the only real-world change being a change in people's feelings. But USD demand is more than just feelings. There is a floor in the demand for USD because anyone who wants to live or do business in the United States are obligated by law (and ultimately, guns) to pay taxes in USD. For this reason, USD demand can't go to zero until the entire US economy collapses (and with the aforementioned guns, US economic interests will likely be protected).

Obviously that floor in demand doesn't represent 100% of the demand for USD, but it's a floor on which a lot of confidence and subsequent demand can be built.