It's instructive of all the commodities out there in the world, you point to the only other one of questionable value as an example, "unbacked" paper currency.

It's instructive of all the commodities out there in the world, you point to the only other one of questionable value as an example, "unbacked" paper currency. But obviously just because people use dollars (or euros) does not mean Bitcoin has any value. The answer to the question of why fiat money has lasted for 44 years is too much to go into in an HN comment. It can be answered in a questions like you did though. Why, with 10000 years of civilization, if it is possible for a state to create non-precious currency of a lasting like gold out of nothing, why if this can be done, did states only start doing it in the past 44 years? The US allowed dollar to gold conversion prior to 1971, if the dollar really is priced on its own accord, why does the US still maintain over 10,000 tons of gold in Fort Knox and other facilities? In 1971, an ounce of gold was worth $40, today it is worth about $1290. Conversely, a dollar in 1971 would be worth about seventeen cents today. Why did gold retain its value but not the dollar?