You cannot imagine? That is already what is happening on our daily transactions using fiat and to some instances, including ceyptocurrencies especially if you are withdrawing some of your funds or profit. We have to accept it; linkage of governments to any transaction which are being done on a daily basis. From buying market goods, paying service and more; there is a usage of 'third party' and that is already the government. One main reason why we won't be able to get rid of it is simply because of the 'system' existing inside and outside this industry.
When it comes on making use of decentralization of this industry for a long run, I think there will always be people to prefer fiat because of consistency with the price. Fiat transactions indeed has higher fees but for sure it is more convenient to the majority.
Not really, when you live in hyperinflation you quickly realize how useless fiat is. You pay in currency x but they want equivalent of currency y, so it doesn't matter if you pay with currency z they just want the equivalent of currency y.
Until currency y too crashes in a spiral of hyperinflation, then something else is used. Anything like cans of tuna, cigarettes or whatever. Those who talk about "convenience" of fiat have only lived with the "strong ones" forgetting that those too, can fall since they have the same flaws, as seen with the pandemic they all printed even more than usual just because they can, and only now some people are noticing.
The State issued fiat currency. Who issued bitcoins? The people independently who participated in the mining at some point. For the first time in history we have a real global currency, and no State issued it which is brilliant, we sidestepped the system. State or Bank can adopt it if they want, it doesn't matter to us. Sure its more "convenient", but not necessary, it will work with or without them, which is why it has so much value.
