Great answer! What kind of system could we create for a smooth transition were everything would be valued by something other then fiat which would not be affected by inflation?
You are again forgetting the difference between value and price. Things are not valued in fiat, they are priced in fiat. Value of all currencies (dollar, euro, yuan, bitcoin, yen, ...) is in their purchasing power.
Lets say bitcoin price is $28000 and you want to buy an iPhone that is $800 so you pay 0.02854
BTC. If dollar tanks and loses half of its value today, you can still buy the same iPhone with 0.02854
BTC tomorrow even though at that time bitcoin should technically be worth $56,000.
This is the difference between value and price in simple terms. Bitcoin value and the iPhone value remained the same so you paid the same amount of bitcoin for its purchase despite the price of both bitcoin and iPhone going up against dollar.
To answer your question, we don't need any system for transition. Bitcoin is a stand alone currency that does not rely on fiat currency of one country. The market may be affected because it is still a small market and market participants are known for their emotional reactions but that's about it.
I have been carefully following up with the explanation of both value and price rate and I think it's quite clear now with this your further explanation, so let me get this straight, bitcoin value remains the same with other fiat interms if purchasing power but it can change in price against the dollar since its still for now the world currency but the value and price could still be the same with euros and pounds but the only difference is that this three currencies mentioned who only gain in prices against the US dollars. It's seem clear enough but if am still not getting it please clear me further on this.