Bitcoin will succeed in both directions;
Bitcoin for the remnant, P2P digital cash that is scarce.
Bitcoin for the NPC, stablecoin proxy on top, issuer buys USTs & sweep profit into Bitcoin which will be taxed later, Bitcoin becomes a neutered reserve asset that requires KYC / AML and permission to use for these people.
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Bitcoin's dual nature is an interesting perspective. The future likely involves both permissionless and permissioned Bitcoin, catering to different needs and risk profiles.
Yep! The remnant and the NPC will both (inadvertently or explicitly) use it.