I've been following cryptocurrencies, BTC being obviously the OG and the big one, and I still have some questions that bug my mind. I absolutely believe in decentralization and limiting governmental control over personal transactions, but I have trouble understanding the entire concept of it.
I am not an economist, and I do not study finance. However, it seems to make sense that currencies have value because of the country backing it and the production from that country.
My understanding is that currency is like a stock: when forex traders buy a certain currency, they expect that country to do well and thus produce more value than other countries, and its currencies will be worth more.
But BTC and cryptocurrencies have NO VALUE BACKING THEM. If a country were to collapse, it has people, it has land, it has factories, it has production. But if BTC were to collapse, there would be no effect on the world.
What's the argument against this?