I am, admittedly, new to Bitcoin but this question never leaves me. If bitcoin is not a bubble, if bitcoin somehow makes itself the international standard currency, what happens to the people who never bought bitcoin? Will they be provided a timeframe in which they will have to exchange their money from traditional currency to the cryptocurrency before traditional currency is phased out and deemed worthless or will there be another method of transition?
Firstly I don't think bitcoin will ever replace fiat but if it were to then yes some scenario like yours would occur, this is always the case when a new currency is phased in, there is a transitional period put in place. You can look at the many examples of this across europe in the 2000s with currencies transitioning to the euro.