Replying to Avatar a source familiar with the matter

That's not what backing is

Backing a currency means you can take that currency to the issuer and get something of real value for it

The monetary value of a currency = face value × expected redemption

So USD and JPY trade at steep discounts and EUR and BTC trade at steep premiums
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freeborn | ἐλεύθερος | 8r0gwg 2y ago

Let's use the coat check desk as an analogy. There are coats, and there are claim checks for those coats.

Fractional reserve banking issues more claim checks than are "backed" by coats. We all know that's a problem.

I think you're saying, when dealing with Bitcoin, "there are no coats " -- but because the supply of claim checks is mathematically fixed, it still works as money?

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a source familiar with the matter 2y ago

Yes exactly - there are no coats, and so long as nobody in the world has any coats this system is better than other systems with claim check inflation.

But what if somebody opens a seemingly-trustworthy coat room with actual coats?

Obviously we know about this whole missing coats problem so you wouldn't want to leave your coat in there indefinitely