Re: History is on Bitcoins side
". . . it was the backing of the Federal Government that stabilized the currency and made it 'safe'."
Of course, as you imply, "safety" is a sardonic measure here. Very much so, indeed ....
"The most interventionary of the Civil War actions was in the vital field of money and banking. The approach toward hard money and free banking that had been achieved during the 1840s and 1850s was swept away by two pernicious inflationist measures of the wartime Republican administration. One was fiat money greenbacks, which depreciated by half by the middle of the Civil War, and were finally replaced by the gold standard after urgent pressure by hard-money Democrats, but not until 1879, some 14 full years after the end of the war. A second, and more lasting, intervention was the National Banking Acts of 1863, 1864, and 1865, which destroyed the issue of bank notes by state-chartered (or “state”) banks by a prohibitory tax, and then monopolized the issue of bank notes in the hands of a few large, federally chartered “national banks,” mainly centered on Wall Street. In a typical cartelization, national banks were compelled by law to accept each other’s notes and demand deposits at par, negating the process by which the free market had previously been discounting the notes and deposits of shaky and inflationary banks. In this way, the Wall Street–federal government establishment was able to control the banking system, and inflate the supply of notes and deposits in a coordinated manner."
And this just went into the overdrive of destruction once the gold standard was kicked to the kerb.
Seriously, the above book is worth reading as antidote to the caricature of history served up cold in schoolrooms as well as "mainstream" journals of "left" and "right". You will start to just laugh in the face of people holding views that look like they were made in bad Hollywood movies.