I don't think you understood the questions.

"Proof of work" answers none of them.

New cryptocurrencies appear all the time. This dillutes the cryptocurrency space. There's only so much capital to invest in any of them.

And the dollar has value, because they're backed up by a government. Not because the bills themselves have an intrinsic value.

> New cryptocurrencies appear all the time. This dillutes the cryptocurrency space. There's only so much capital to invest in any of them.

And that's exactly why a lot of these new cryptocurrencies are worthless. The space is saturated and a lot of these new coins don't offer anything new. People don't agree on its value. I mentioned this.

> And the dollar has value, because they're backed up by a government. Not because the bills themselves have an intrinsic value.

Well crypto is backed by a huge network of miners, hence I mentioned proof of work.

Yes, USD is the only accepted way of paying taxes in the USA. If you wanna live and consume in the USA, you need to pay tax. If you need to pay tax you need dollars. This is generally how a country ensures demand for their currency.

That's not intrinsic value