Competition between local currencies Vs crypto currencies are in peak now. Crypto currencies have occupied currency market causing local currencies enforce (banks) banning of crypto currencies. We can see number of investors have turned towards to bitcoin and other crypto currencies with large scale. Will there be a chance / time bitcoin and other crypto currencies rule over currency market and local currencies get disappear slowly in a decade or two?
When we say competition, it does not necessarily means that one will make the other disappear or actually fail. They may weakens the other but not completely occupy it entirely. Bitcoin and traditional money could actually co exist with each other while complimenting each potentiality. Total eradication of a certain system happens by decades of transition. History witness all kinds of successful changes and breakthrough, so, only time can tell the future of transactions.
I agree with everything you said. But actually, I am not sure about the local currency that is being talked about here. If it is the national currency of each countries, well I don't think cryptocurrrencies will ever be able to to make national currencies disappear.
At the end of the day, cryptocurrencies are highly used in investment and not as medium of exchange.