bitcoin has many advantages
fiat has many advantages
That's why I don't see any reason to make comparisons.
for example:
fiat is recognized by governments which allows it to be used in countries, everything you buy uses fiat, people receive a salary using fiat, but there are maximum values for walking on the street with fiat, something that does not happen with bitcoin where the person can be their own bank
Many seemed to compare these two since both can be associated and used as payment for services. There is this comparison which is also similar to gold, where people would debate on which is better. The difference is, BTC is relatively easier to earn compared to owning gold.
Personally, fiat will always be the better option compared to BTC. Like what you have mentioned, the recognition and utilization of BTC is yet to be globally accepted, given that most countries still prohibit the transaction of such due to the risks involved on their part (e.g. anonymity on transactions, etc.).
Since fiat can easily be regulated and controlled by the government institutions, BTC on the other hand, cannot be regulated without losing its function and essence.