1. I can agree with point 1 in the sense that the market is not an accurate reflection of value.
2. This does nothing to affect the value of bitcoin. BTC is just as prone to corruption, theft, and lying as any other investment tool.
3. The term fractional has absolutely nothing to do with what you're talking about. The dollar is fractional to cover the sheer cost of what it is asked to do. It was made into a fractional reserve currency because it could not expand the money supply in a way that was sufficient to expand the economy. It was finite and so only so much of it could be used.
4. Bitcoin isn't used to trade for anything so your statement is pointless. Please show me where you can buy something for bitcoin.
5. The exchange servers will always be necessary because no one will ever accept bitcoin.
How will all this infrastructure be maintained? How will people be paid for the services they provide to maintain this infrastructure? Some enterprising individual might come up with some great answers but I have yet to see those answers get pushed forward. I have some answers but I'm banking on fiat not collapsing for a simple reason. All the guns say it won't. There are more guns then you could possibly imagine and if the guns say don't accept bitcoin everyone will fall into line. This is the world we live in, it's much more horrible and disingenuous then 1984. Hence why I make my "psychological" reference. All money is simply a psychological tool.
- The value of Bitcoin today is not the same as the value of Bitcoin post-collapse. The trust issue isn't big - yet. Comparing Bitcoin in a world where *reliable* money is all tangible; Bitcoin has a distinct advantage because a burglar can't just walk away with it while you're away. It's WAY easier to break into somebodies house and rob the cash under the mattress than to brute force an encryption key.
- In a non-fractional banking system there will be no such thing as an online purchase. If you can't be there in person to tender the payment then you are operating in a fractional system. I'm referring to the movement of money and the availability at any given point. Money in transit isn't money in hand.
- Bitcoin is used to trade every day; I don't know where you get that idea... People get paid in Bitcoin for goods and services every day; not all of them are converted to fiat.
- The exchange servers won't always be necessary. I could send a Bitcoin payment right now and it will never pass through an exchange server. Plenty of people accept Bitcoin already. I disagree when you say, "no one will ever accept bitcoin."
The answers you haven't seen get pushed forward haven't needed to be pushed forward yet. The maintenance is a job, the customers pay in some medium for the service, the company uses part of the proceeds from providing the service to pay for the maintenance. The dollar isn't important here, it's only a vessel for converting labor into food (or whatever else). Bitcoin is a more efficient vessel than the dollar.
All the guns in the world can't stop fiat from collapsing. Actually I think they are pushing
for a collapse in hopes that the masses will accept the "necessity" of a power shift into an outright Authoritarian "World Government".