Quote from: 00ph8al on March 07, 2014, 03:31:40 PM

Quote from: knightcoin on March 06, 2014, 06:20:31 AM

economists estimate that only 8 percent of the world's currency exists as physical cash. The rest exists only on a computer hard drive, in electronic bank accounts around the world.

http://www.howstuffworks.com/currency6.htm

I'm work in a small business and about 90% of sales goes through PDA machines ... myself.....well I dont have more than 10 quids in my pocket for ages ... every time I lost my debit/credit card .. I rush to the bank agency because I simple don't have enought banknotes with me...

Good point. If fiat exists to such a percentage in digital format, why doesn't traditional banking suffer from these security issues at the same level?

Because it is heavily regulated. More security is bought with (limiting oneself) freedom. Also traditional banking suffers from some other security issues (government ~~robbery~~ taxation, violation of privacy, forced bail-ins, monetary reforms, state collapses...) which Bitcoins offer protection against.
It is up to everyone to choose. Both systems should coexist and display its advantages and disadvantages. It is easy to say that something is "better" or "necessary" if you have no comparison.