Again, with gold being valuable and dollars having the benefit of legal tender, why would you consider crypto with such backing to be inferior to crypto without it?
See you just showed it isn’t intrinsically valuable. Jewelry and ornaments aren’t where valuable things land. Valuable things help you have tools, food, and shelter. Even the Greeks got this, the whole point of the fable of Midas is that his love of gold caused him to lose the things that are actually valuable. Put yourself in any Robinson Crusoe/ post apocalypse/ there isn’t enough stuff to trade or society to trade with situation. You encounter piles of tools, food, building supplies and gold but you don’t have the ability to grab them all, which pile is the least important? The gold pile. Gold is useless until you can have trade. Thus gold has no innate value. It’s just that we spent so long liking how shiny it is, and have used it in trade for so long, that most people have bought the lie. They don’t even question it. But they should. Because gold only has the value we give it, nothing innate about it.
Because gold isn’t valuable. Legal tender is completely a made up concept. And cryptos primary fans want their money to have as little to do with the government as possible. From a pure marketing perspective government backed crypto has all the problems that’s why they’re trying to get AWAY from dollars. The whole backed crypto concept is basically saying “oh you want to get away from government backed government tracked money? How about if we call it something else?” Outside of that crowd it will be fine, just another crypto. But that crowd are the movers and shakers of crypto, they’re the early adopters, they’re the ones pushing which of the hundreds of cryptos out there matter. And they’re not gonna touch government crypto with their worst enemy’s cellphone.