The narrative that Bitcoin will replace fiat currency truly misunderstands how disruptive technology reshapes markets. The correct analogy is not destruction, but consolidation. Look no further than the retail giant Walmart and how they embraced the internet.
Walmart adapted, integrating e-commerce to become a dominant omnichannel player.
The real victims were local, family owned "mom and pop" stores, whose ability to compete on price, selection, and logistics was crushed by the new, hyper-efficient digital landscape.
In the end, the new financial system will likely be hybrid: a digital system run by the world's largest financial entities and governments, layered on top of or inspired by decentralized technologies. Products like Bitcoin will supercharge these incumbents, not replace them. It offers the tools for a cheaper, faster global financial system, one that the most powerful actors are best positioned to leverage, further cementing their dominance over smaller, regional competitors.