The deliberate balkanization of all finance in fiat money will backfire big time. The dinosaurs are simply herding everybody in the direction of bitcoin, and there will be no turning back ;-)
Sure, bitcoin is free to transfer for now, but soon exchanges will have to start charging a fee.
Currently the "proof of work" kills two birds with one stone: it allows transfer of the currency and also mines new coins for the exchanges doing the transfer. But that only lasts until the 21 million cap is reached; after that, no mining, no free money for exchanges, but since someone still has to do the work ... it'll be for a fee.
It's also not a cap, it's a target. "Reaching" the target means either:
1) all of our speculative bitcoin money becomes worthless as miners stop mining because it ceases to be profitable, so new blocks are not produced, so transactions don't flow.
2) miners stop processing transactions below a certain size or without a certain fee included, so only poor peoples' money becomes worthless as they can't afford the fees, don't meet the size limit, etc. or
3) the algorithm works, all of the money is fungible, and fees that are a fraction of what you and I would consider money today are enough for miners to make a living, as long as they are contributing a fraction of a percent of the hashes that sustain the whole network globally.
There's nothing "Free" about the miner fees. The subsidy of block rewards are meant to compensate early adopters for their hardware and electricity costs. If miners don't horde bitcoins to themselves, they don't "need" the money to be viable, once their investment is paid off they can just as well unplug the machines and let them sit on a shelf, assuming it's not worth their time and electricity to go on mining.
Bitcoin is "free to transfer" at exchanges because exchanges collect their fees through other vectors than transfer... eg, trade fees, merchant fees, venture capitalist infusion, ... there's no free money, and if you think there is, ask anyone who's already become rich on bitcoin how many they're keeping "in case the value goes sky high" eg. so others can make money off of us all.
Currently the "proof of work" kills two birds with one stone: it allows transfer of the currency and also mines new coins for the exchanges doing the transfer. But that only lasts until the 21 million cap is reached; after that, no mining, no free money for exchanges, but since someone still has to do the work ... it'll be for a fee.