> The US dollar is backed by the sovereignty of the US government
This is completely meaningless. You're just repeating something you heard. Anyone with a coherent understanding of the USD's value proposition would not describe it this way.
> their willingness to accept the US dollar in payment of all tax obligations
This is a real, but small, factor in the value of the USD.
> would plunge the country into a period similar to the middle ages in Europe where coin scarcity crippled productivity
This isn't an issue with Bitcoin. There's no "coin scarcity" due to its high divisibility and near-ideal fungibility.
This is completely meaningless. You're just repeating something you heard. Anyone with a coherent understanding of the USD's value proposition would not describe it this way.
> their willingness to accept the US dollar in payment of all tax obligations
This is a real, but small, factor in the value of the USD.
> would plunge the country into a period similar to the middle ages in Europe where coin scarcity crippled productivity
This isn't an issue with Bitcoin. There's no "coin scarcity" due to its high divisibility and near-ideal fungibility.