You can hold your bitcoin wallet on a piece of paper.
You can exchange that piece of paper with someone willing to travel the 50 miles where there’s electricity to cash in the bitcoin.
It’s no different than gold or silver. Anyone in that area will only accept it if they are willing to transport it to wherever they need to go to exchange it into fiat or whatever else they want.
There is physical bitcoin… coins.
You can hold your bitcoin wallet on a piece of paper.
You can exchange that piece of paper with someone willing to travel the 50 miles where there’s electricity to cash in the bitcoin.
It’s no different than gold or silver. Anyone in that area will only accept it if they are willing to transport it to wherever they need to go to exchange it into fiat or whatever else they want.