[wizeman]

> Uh, plenty of currencies not tied to governments have collapsed.

Widely used currencies? Which ones?

> And the military is part of keeping the country going and enforcing the currency as legal tender.

No, actually it isn't. The courts and law enforcement are. And legal tender doesn't mean that a citizen or company has to accept the currency (unless it's for a payment of a debt, and even then there are several restrictions).

Which is why even if we're both in the US, I could sell you something for bitcoins (or EUR or whatever) and neither the military, nor the courts nor law enforcement would do anything to enforce that I sell you things for the USD instead.

So saying that a currency is "backed by the military" means nothing.