If paper currency got bootstrapping 1300 years ago, then why were American and European currencies gold backed half a century ago? Apparently the bootstrapped currency needed to be bootstraped again.
Gold is an ordinary commodity with practical uses (electronics, tooth fillings etc.) Its special qualities that make it a good currency candidate are its durability, portability, uniformity and divisibility. Gold is valuable due to its practical value, but is often exchanged due to its commodity qualities.
> an institution and its ability to maintain its value through whatever means it has available
The means a half century ago was to trade the paper for gold. Now that is implicit. The US stores tons of gold in Fort Knox and elsewhere - why? Obviously it implicitly backs the currency, even if the M1 supply is very large.