When a bank goes bankrupt that effects equity and the owners of the banks. But the borrowers are still obligated to repay their loans. And it is those repayments what enable fiat currency holders to get resources (labour, services and products) from the borrowers. In that way, debt in which they invested by receiving fiat currencies, is paid to them.
Unsecured creditors are not the first in line to have their funds recovered when banks fail. Savers often lose out. This is why the FSCS exists. Stop pretending that it's a magical world of make believe where bank balances are somehow left intact when the company that printed them from thin air becomes insolvent.
Bitcoin is a number. It has nothing to do with anything that's going on in the banking system.
Bitcoin is a physical network, a protocol and a blockchain. It is all the better for not being part of an antiquated and corrupt banking system where private companies have a licence to print money from nothing and only hold 1% of the funds as fractional reserve.
We've built a better system which does not require placing trust in private companies who can become insolvent and wipe out any money you may have deposited. Money which, once you deposit it, no longer belongs to you in the eyes of the law. Anything you deposit becomes the property of the bank. The balance you think you hold is nothing more than an IOU.
You're again showing the ignorance of how the banks operate. All numbers are printed out of thin air. Numbers on invoices, numbers on banknotes or bank accounts, numbers in mathematical books etc. The point is what these numbers represent. In the banking system they represent the quantity of debt. Debt is a resource that is protected with the collaterals of the borrowers. The collaterals of the borrowers didn't cease to exist just because a particular bank became insolvent. Insolvency effects the equity and the owners of the banks, not the currency in general. Although a currency in general can be affected if the whole banking system is based on bad collaterals, like in corrupted third-world countries. But all that is besides the point for this discussion. Here we discuss the fraudulent investment scheme in which the numeric labels of members who joined the scheme (bitcoins) are falsely advertised as money. And where the network (Bitcoin) is falsely advertised as a payment system. Read the OP. I edited it again, just for you to make the important points more clear.