I don't agree with you here. Bitcoin is always better because there is no central authority, you alone can choose the way you want to use your money they don't get to tell you when you can withdraw or limit to withdraw/deposit, but the traditional finance system does. If you are talking about risk, there is no system that risk is not involved. Even those with fiat can still be scammed or hacked when someone gain access to their device.
There has never been a time where Bitcoin guaranteed risk free use of it. Bitcoin only serves its purpose. You can send any amount to anyone in the world without any third party being involved. No document is expected from you.
I am not saying that the fiat currency system is risk free, everything has its own potential risks.
It is true that bitcoin gives us a better solution, we have full control over our assets through bitcoin, which fiat money cannot do. But to evaluate an asset/investment...there needs to be an overall assessment of liquidity, popularity and acceptance, as well as legitimacy...it is clear that bitcoin is riskier. Many governments have legalized it but is there any guarantee that they will never reverse it in the future?
By the way, people always compare bitcoin to fiat and claim that bitcoin is the better solution. But as I see it, people only use bitcoin for speculation and when they have enough profit, they will go back to fiat and traditional assets. This makes me wonder, do people really see bitcoin as an alternative or are they just taking advantage it and will leave it once they have achieved their goals?
There are persons who still know the value of holding Bitcoin aside from making profits. My friend does buy Bitcoin from people because he uses it for his gadget business.
There are still some people using bitcoin as a currency, payment method or store of value...but how many people and what percentage?