[organsnyder]

> With bitcoin there is no possibility of default, and very high resistance to financial censorship.

I'll concede your second point (due to the decentralization of Bitcoin), but I'm having a hard time accepting "no possibility of default".

What does "default" mean, when applied to a currency? In the 2008 crisis, it was institutions that were in default (or in danger of defaulting); the currency itself was just fine. Over-leveraging could be done with any commodity—it's not limited to traditional fiat currencies.

Your argument seems to hinge on an assumption that centralized banking is mainly made up of bad actors, while decentralized banking is made up of virtuous ones. I don't see why this would be the case. I prefer to assume that everyone is a bad actor (must be my Calvinist upbringing), so we should design systems with this in mind. Government-sanctioned currencies give us the ability—in theory—to have accountability through the political process; certainly, it's not perfect (see USA, 2018), but at least there is the potential to incorporate checks and balances.