The Federal Reserve has been a fair steward of the dollar, with only a 96% devaluation since 1913. The curious can check the official numbers here:
It is backed by the obligation to pay your taxes in that currency. I.e. every citizen with tax obligation (i.e. basically everybody) needs to collect Dollars to pay his tax bill. So everybody is willing to accept payments in that currency or in a currency which can be reasonably easy converted to Dollars.
As a topper sales tax creates a tax obligation on virtually all transactions within the society, so the need to own Dollars is directly bound to economic activity.
If it's a reserve currency, as the U.S. is, it is also backed by the demand of other states to hold U.S. dollars to stabilize their non-reserve currency.
Indeed, some argue that a reserve currency is not subject to ordinary balance of payments criteria. This is sometimes called exorbitant privilege.[1]
All to say, the U.S. currency is not just backed by assets of the nation, but by demand that other states have for local-currency stability.
Somewhat aside, some argue that this creates a perverted incentive to destabilize the world because unstable states and regions have a higher demand for a reserve currency.
For a reference point, gold is another sovereign asset and it has held up pretty well over the years.
https://echobtg.com/fiat-currency-graveyard-a-history-of-mon...
https://steemit.com/money/@fluffy/fiat-currency-a-history-of...
...As written by two Blockchain sites. Ya got me.
> Most people don’t study history (or don’t learn its lessons) and as the saying goes, are doomed to repeat it.
Have a nice day.
Do you accept the Nano cryptocurrency?
Welcome to the new world, were fiat will be an old dinosaur living in a digital world (and yes, I said world, not nation)
Comparing a nation's fiat to bitcoin is hilarious.
Here's what the USD is backed by. The nation's assets. And more importantly the nation's power to enforce their will upon you legally (via courts, police, military, etc.).