I keep seeing the fallacy that all currency value is based on future expectations.
Here's a thought experiment... in the US, work full time while getting paid in Bitcoin. Make all transactions in Bitcoin. At the end of the year you'll need to file a tax return. Your final options are:
1. Buy some USD to pay your taxes.
2. Go to jail.
Demand for fiat currencies is ultimately underpinned by them being the only instrument accepted for payment of taxes.
Here's a thought experiment... in the US, work full time while getting paid in Bitcoin. Make all transactions in Bitcoin. At the end of the year you'll need to file a tax return. Your final options are: 1. Buy some USD to pay your taxes. 2. Go to jail.
Demand for fiat currencies is ultimately underpinned by them being the only instrument accepted for payment of taxes.