Why can't they coexist indefinitely? I think its either they coexist indefinitely, which I believe they will. Or freedom and bitcoin get crushed (also very likely). Or by a mircale or set of miracles freedom wins (very unlikely as we dont deserve or believe in it and It).

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Indefinitely is a (very very) long time, and fiat is structurally unstable. The debt / money supply must expand in order to service existing debt. This means that top-down apparatuses of control must strengthen to keep as many of 8B people locked in the system as possible. Meanwhile bitcoin is the permissionless exit door that is growing more and more truthful, hopeful, and abundant as time goes on. Yes, on-ramps will be controlled, information will be manipulated, etc. , but the cost of doing so universally is prohibitively high. Especially as more and more people like you and me allocate their time and energy to the emergent system of abundance.