One reason I see is because bitcoin is already being used by people as a means to get more of their local issued currency by means of speculation and trading. If we kept the idea of 1 BTC = 1 BTC and people haven't discovered its speculative properties, we may have flourished as a strict P2P currency system without government intervention, however since people are using bitcoin to get fiat and vice-versa, that's when governments feel the need to step in. With this, regulations are somewhat painful compromise we as a community have agreed to ever since people exchanged bitcoins to fiat, and that is back in 2010.
In my opinion, BTC will never replace FIAT in that way. I dont think that was the point either. The point is to coexist and be an alternative I guess (?). So no compromise really made, right?
I agree completely. Replacing FIAT is out of the question in my opinion. Bitcoin was designed to serve as an alternate payment solution to FIAT, gold etc by providing users complete anonymity while conducting their financial transactions.
Regulation to an extent can help Bitcoin which is why I am not completely against it.
Dont know why people do forces out that thing about Bitcoin replacing Fiat yet this thing wont really happen even on our dreams.Traditional market would retain and as long there are
governments who do hold up, they wont really let those things to happen thats why dont really expect that this scenario would be plausible.Sad to say but in further for bitcoin to be recognized, regulation
is one of the ways.