turvarya,
You do realize that decentralization and the European social model (tax and redistribute) are incongruent?
A decentralized currency(!) and the European social model are not incongruent?
There are not just this two extrems: Either everything is decentralized or everything is centralized.
There is also not just that outcome, that Bitcoin succeed and every fiat disappears or Bitcoin disappears.
If your imagination is just limited to think of 2 possibilities, than I finally understand, what your big problem is.