Bitcoin is famous for its fixed MAX supply of 21 million BTC. For years no one cared, but once people started to care it was off to the races for Bitcoin.
Many people see Bitcoin as money outside the central banking system, and they see it as a viable alternative to fiat currencies. Neither fiat currencies not cryptocurrencies are backed by anything, but people have more trust in crypto than in fiat currencies.
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In a way. There are still a great many people that trust the security of some fiat currencies, especially the US dollar which is currently the most widely accepted token of exchange.
The volitivity of cryptocurrencies still make it difficult to use as a way to use in purchases with the exception of stable coins.
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Given the nature of fiat currencies, USD reigns supreme among them, even more so than GBP, EUR, and CHF. One day it's value will reach its intrinsic value (zero), but all others will fall first. USD will be Last Man Standing, so to speak.
Extreme volatility of cryptocurrencies is the major stumbling block for acceptance by the public. Then again, that's because they are being measured against fiat currencies. Without fiat currencies, 1 BTC equals 1 BTC, 1 DOGE equals 1 DOGE, and 1 HIVE equals 1 HIVE.
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IMO: Governmemt issued Fiat currency is backed by a centralized authority who has an arbitrary power to act and implement at a whim without any input from the population. And effects these changes by the threat of force.
Cryptocurrency is backed by code, encryption, a public ledger, the network effect, the free market, and people's free choice. And if your lucky and find a place like hive, it is also backed by development and use case.
That why "fiat" is part of the phrases "fiat money" and "fiat currencies": Money forced on the people by the rulers.
Just as important regarding cryptocurrency, it's backed by trust. Even with all the pump-and-dumpers out there and all the rug pulls taking place, cryptocurrency has more trust than fiat currencies.
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