An increase in the Bitcoin price would not make people stop using Fiat. For that to happen, people would need to find a more efficient way to micropayments, and maybe a large number of people would stop using fiat currency. But at the moment, the Bitcoin network is not ready for micropayments, and nothing guarantees that this will happen when Bitcoin reaches $ 10,000. Either way, this works, and will probably continue to work as a very efficient way to store value.