I have some fundamental issues and questions with Bitcoin

My common senses are tingling. There’s some things that just don’t quite make sense to me. Maybe some can help me out?

1. Fiat currency is defined by having value because a government says it does but is not backed by any physical commodity. Bitcoin is not controlled by government, but what exactly is its physical backing? It seems like it’s only backing is in fiat currency, i.e. one bitcoin is worth x amount of dollars.

2. Bitcoin is seen as a safeguard against a failing US dollar, but if the US dollar starts to become worthless, do you really think people will continue to accept digital currency? I’m not sure people realize how monumentally bad things will be if you people can’t even afford bread with their dollars. Again, the only reason bitcoin has any value right now is because it is tied to fiat currency. If we ever get to the point where the dollar becomes worthless, it means we have some serious problems that digital currency isn’t going to fix. In times of great hardship, the only things that really hold their value are physical goods like food, water, supplies etc. and precious metals.

3. Currently, while people cling to the idea that bitcoin will keep us alive in a tanked economy, most people right now are only invested in order to make as much dollars as possible. People are buying low and selling high every day in order to make money off of other people who weren’t as smart with their plays. Others are holding long term, planning to sell once bitcoin hits a certain price. Any money that is made from bitcoin is made because someone else lost that money. It seems like a zero sum game where people are trying to outsmart and take money from each other. I don’t see where any real value is being produced, and I have to imagine that if the economy crashes, people will be selling off their bitcoin in order to pay for things they need.

4. People say it will replace the dollar one day. If everyone used bitcoin instead of dollars, how would our government get tax money in order to fund things that we need? Isn’t the whole point of bitcoin not to be controlled by the government?

To be clear, I think bitcoin is very useful, and I think as long as the world keeps turning, it will be a useful way to pay people anywhere across the world. I just don’t see logically how some of claims people make can really hold up.

I also fully accept that I may be completely wrong and I may have no idea what I’m talking about. I’m willing to be convinced and I am not dead set on these opinions. These are just some things that I and many others are thinking about and having issues with. If you can convince me that bitcoin will save my retirement and provide wealth for my kids, I’m all ears.