The theory of paper money with no corresponding reserve is doomed to fail given the levels of debt issued by the countries supporting the currencies. The only way to pay for this debt will be issuing more currency which will make the value plunge. This leads to one of the fundamentals of Bitcoin which is trust; no trust could be given to these central banks as they manage the supply based on their interest, not of the holders. Bitcoin does not have that issue as the only incentive provided is by those who confirm the blockchain validity which has a set supply limit onced mined. So Bitcoin will be able to retain value given the peer to peer exchange functionality with no 3rd party involved.