Bitcoin can't become a unit-of-account for the reasons I just stated
I don't agree with your reasoning here.
By any measure, de-centralised currencies are a step away from "government control". Yes, government can issue a "cryptocurrency" but they can't control it other than by "hoping" then people will use theirs instead of another crypto.
Lets say they "declared" it legal tender and allowed people to pay their taxes in "govoCoin". So what ? It's not a substitute for true control such as the central banks now have over fiat.
My gosh you missed the main point. The masses like fiat! They don't require that the digital currency of the world needs to not be a fiat.
And you did not address the point that the masses don't like the properties of Bitcoin:
- Mixes traceable illegal activity with their funds
- No protection against theft
- No refundable protection
- No consumer protection
- Very volatile price
- Must convert to and from fiat which is a hassle
- Very slow transactions, and confusing
- No government guaranteed deposit insurance
- Can't obtain a loan or credit card in bitcoins
- There is no cash version to use offline.
Fiat doesn't have those weaknesses. Fiat has other weaknesses which we are concerned about, but the masses don't care about those weaknesses that bother us. Later the masses will fall into the abyss, then some of them will learn to appreciate our ideals but most of them won't learn.