How does Bitcoin have value?

I was talking with a friend and he made the claim that Bitcoin has no value like fiat currencies because it isn’t backed by gold or oil. I know the hash rate backs the Bitcoin network but can it really have intrinsic value if the electricity used to secure the network is dependent on electricity generated by fossil fuels? I guess if all the electricity was generated from renewables that would be different. Your thoughts are appreciated.

Edit: thank you for all the input!