The value of fiat is it's fungibility. You can get it anywhere and spend it anywhere. A little inflation is also good for the economy. Deflation and and an asset backed currency would only slow the economy down as of right now, and that means less production and less people with less stuff (inculding people who'd starve to death because of it). Contemporary economic wisdom says you hold onto some fiat for emergencies and safe savings, then put additional value elsewhere (land, stocks, bonds, crypto, metals, and a wide variety of other asset options).

Could it all come crashing down? Maybe. Will we see a temporary crash? Most likely. But has the modern economic principles made us all better off? Yes. But the idea of completely writing off fiat just seems like an absurd pipe dream. Maybe this is an unpopular opinion here, but it's my opinion that as long as the game lasts and people are better off for it no point in writing it off.

And if fiat does truly collapse, so does modern society. Crypto people and the gold bugs don't get rich, everybody loses and we're all stuck with whatever we invested into weapons. I really, really, really hope that don't happen in my lifetime or my kids lifetime if I ever have any.