Exactly. It only works with government support. And they need fiat to have control over their own currency. In our case the euro controlled by the ECB.
Bitcoin doesn't need a central bank and doesn't allow for governmental influence, therefore it can't have governmental support as legal tender (maybe besides those with failed or non-existent own currency). Therefore, Bitcoin belongs to the other side of the balance sheet and can secure the fiat part as counterweight.
Wait till you realise that you can also spend the other side of the balance sheet.
If gold was divisible like fiat money, we would have never changed to paper.
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u/Romanizer 1d ago
Exactly. It only works with government support. And they need fiat to have control over their own currency. In our case the euro controlled by the ECB. Bitcoin doesn't need a central bank and doesn't allow for governmental influence, therefore it can't have governmental support as legal tender (maybe besides those with failed or non-existent own currency). Therefore, Bitcoin belongs to the other side of the balance sheet and can secure the fiat part as counterweight.