My point is that taxes are a key factor in creating demand for dollars. > the government would still need to exchange those bitcoins for dollars in order to pa

My point is that taxes are a key factor in creating demand for dollars. > the government would still need to exchange those bitcoins for dollars in order to pay its debts That is not true. The government does not collect taxes to pay its debt, as it can simply spend its own currency which it creates. Taxes are relevant to spending in that it keeps dollars valuable.