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One thing that makes the dollar more "real" is that you are required to pay taxes in it. This creates an automatic demand for dollars. Even if you make your money in bitcoin in US, you need some dollars to pay your taxes or risk being thrown in jail. There is no such "intrinsic" value for bitcoin.

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There is utility in Bitcoins ability to transfer value worldwide, without middlemen, only requiring a cheap smartphone.

Strictly speaking nothing has "intrinsic" value, but Bitcoin can be valued because it has many qualities of "good" money like being transportable and durable, doing some of them theorically better than current monies.

That's not a definition for real. Requiring to pay taxes by US dollar makes it more in demand. So it creates some demand for the dollar. It is the same way by which bitcoin or any other asset gain value.

That's why I put it in quotes. However, calling it "some demand" severly understates the significance of this fact. It's not just some demand, it means it's absolutely vital for vast majority of people and businesses in US. Which won't be the case for bc unless it becomes legal tender

So? Does that mean investors should unload their Apple stock because iphones are not vital?

Except the demand for one is created by gun point

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