It won't happen because in the past fiat was backed by gold, but they abandon it due to volatility, Bitcoin volatility is even bigger than gold.

If the US use Bitcoin to back their fiat, people will know how trash is Dollar, Bitcoin will rise like a rocket while 1 USD is still worth 1 USD. This would kill their own currency because people no longer want to hold their money in banks.

I use US as the example because they're the biggest spender.

I believe the way the gold standard restricted their capabilities to issue currency was a larger concern than gold's volatility, but the result is the same, given that Bitcoin is not only more volatile than gold but also even rarer.



How would a government's infinite money printing capability enable them to clog the Bitcoin network? Fiat currencies don't pay for transaction fees, bitcoins do and it's not like the government can print Bitcoin.

That's an idea in your head, and it's not going to happen; it's entirely impossible. Bitcoin is an asset with a limited supply, not like the fiat that can be printed and increased over time.

Using something as volatile as Bitcoin to back up a shitcoin like fiat is something that the government won't even try to give a second thought The farthest they can go with Bitcoin is to invest in it and not to use it to destroy the remaining value that their local currency has.


In terms of investment, everyone has their own opinion of what to consider to be the best investment based on their own definition, but when it comes to an economy collapsing, even Bitcoin won't be save that moment, everything that has to do with finances will be affected.

Better to leave BTC as BTC and not to use it to back any other currency.

It was intended to be an alternative, not a hand-to-hand coin to accompany fiat itself or any other currency.

Only if the miners in question were inclined by the gov.. Which is not true, at least not to a degree to cause trouble, as far as I know

It is theoretically possible but in practice it will face many problems. You are talking about an attack that will cost money. It requires the government to dedicate part of its budget to performing this attack!
There will be a backlash from the people of that country who will see their money wasted on an attack while a lot of problems in that country exist (eg. health care).
There will also be a global backlash when bitcoiners see a rogue government is carrying out an attack on the money they use!

That's not to mention the fiat being printed causes inflation in that country... which would bring more backlash...

That makes no sense! Why would bitcoin price go up if a government is attacking it making it too expensive to use? If anything price could drop.

I don't understand how your two opening lines led to this, you forgot to create that link.

In any case, if it is a dedicated currency created to only be 1:1 backed by bitcoin while the government keeps its fiat and continues printing it, that currency is going to be considered an utterly useless shitcoin because bitcoin already exists and just because someone prints something new and says it is backed by bitcoin it doesn't give it any kind of value or utility.

If you are talking about government giving up unlimited supply fiat and come up with a new currency completely backed by bitcoin, then that is impossible. They will not do it. The economy is not designed that way either, unfortunately...

I think 2008 catastrophe already taught us that not only it is not safe but it is extremely fragile and can easily and catastrophically collapse in a blinking of an eye.

Except for a government that doesn't know their primary obligations to the citizens of their country that will choose to waste such funds. Just to proof what? It is this idea of infinite printing of the fiat that has  continuously caused it devaluation as it lacks rarity.

Is this supposed to put fear in the mind of those investors that are aggressively accumulating bitcoin, that they are going to pay much high fees with the government backing the fiat with bitcoin? I think we all know those that determines bitcoin transaction fees and certainly can't be the government.

Fiat currency - even its modern form as Central Bank Digital Currency - and bitcoin will coexist, I have no doubt about that. Even CBDCs will need quite long time to completely replace fiat currencies in all nations and all people. I can not imagine when in the world, there is no existence of fiat currency and only CBDCs exist and circulate in societies.

The future when Bitcoin replaces fiat currencies or CBDCs entirely won't happen even honestly I am a Bitcoin enthusiast and strongly believe in its bullish future.

They don't want to back their fiat currencies or CBDCs by bitcoins as it is like their official recognition of Bitcoin strength while their currencies are weaker. It won't happen for fiat currency backed by bitcoin at 1:1 because we see that Bitcoin price is volatile while fiat currency is itself. $1 is $1 forever, even its purchasing power drops with time.

1 BTC is 1 BTC forever but it is volatile in price, not ony in purchasing power.

Governments could try spamming Bitcoin with high-fee transactions but it wouldn’t persist long. The network would adapt, State backed Bitcoin currencies aren’t ideal but better than fiat. Bitcoin functions effectively as a store of value for now and can evolve into more roles
Still it’s smart to diversify and not rely on Bitcoin alone.