Whatever argument it takes to get the government to leave crypto alone and not take it over is okay with me.
Dollars are not backed by taxes.
Their value is determined by the imagination of counterparties. If they were backed by taxes, there would be no Fed FOMC meetings to decide what interest rates — or QE — or QT — is to be done. But those meetings do happen and thus, those decisions are largely whimsical.
If they were based on “backed by taxes” there would be no decisions to be made. The decisions would be mechanical and arithmetic and automatic.
But they aren’t. They are dependent on the mood of the FOMC. Its imagination.
So the “bitcoin has no backing” argument fails. Bitcoin’s value is determined by exactly the same mechanism as the dollar’s value — the imagination of counterparties.