Updated: Oct 16, 2020
Bitcoin is far better suited to back a fiat currency than Gold, and a transition back to the Gold Standard would be a half-feasible solution to the current economic system. An ideal system would be for large central banks to hold bitcoin in impenetrable vaults to maintain a base-value. Also, a security council akin to the UN would be used to regulate worldwide monetary policy, and this will prevent massive currency devaluations that would otherwise cause problems.
Gold is good, but bitcoin is better. In fact, Bitcoin essentially solves all of the problems that riddle gold that prevent it from being largely accepted worldwide as a standard. For instance, there is an unknown amount of Gold on planet Earth. There is no known quantity for supply, thus an unexpected Gold rush would plummet the value of all gold on the market today. And if currencies were tied to the value of Gold (i.e. The Gold Standard), then all currencies would be devalued as well and prices of assets would soar, everything from groceries to houses would become more expensive and would not be met with an increase in household income.
Bitcoin has a precise count of all bitcoin in circulation. Two bitcoin are released yearly, and at the end of its production, there will be 21 million bitcoin in circulation. This eliminates concerns about an unwarranted supply being released into the market, whereas this concern still looms with Gold.
Not to mention, Gold hasn't been used in transactions in over a century. If you'd like to grab a coffee from Starbucks, but you don't have enough cash or your debit card isn't working, you can't just drop Gold bars onto the counter and walk away with the coffee. You can't buy cars, houses, stock, bonds, or virtually anything with a piece of Gold. However, Bitcoin has been used to make transactions since it was created.
Originally, the largest movers of Bitcoin were people are the Dark Web purchasing illicit goods such as guns, drugs, stolen credit card info, etc. And while it was only accepted on the online black market at first, now multiple businesses accept payment in Bitcoin, including Starbucks, Microsoft, Overstock, Express VPN, etc. The list is short, yet continuously growing. Whereas Gold is mainly used in backroom deals between two individuals, and not a community such as Bitcoin's acceptance within the virtual black market.
In a perfect system, our governments would take it upon themselves to develop a cryptocurrency that fit the world's needs. Bitcoin's inventory of 21 million coins will most likely not be large enough to back value to a world with a GDP of nearly $100 trillion USD. Bitcoin may not be perfect, but it's better than Gold, which itself is better than nothing.