Sorry, I think my previous reply was unclear. I'm 100% on board that in scenario one the debased currency would be replaced by bitcoin.
But in regards to scenario two, I'm not so sure what that would look like. I suppose it would depend on how far the fiscal responsibility went. If it included the whole shebang: no more seizures, no more censoring, no more inflation, etc, then I could imagine bitcoin not playing such an important role, and, in turn, losing its value.
However, I could also imagine a scenario where trust in central authorities is irreversibly broken, regardless of course correction, and people keep on stacking anyway (I'd likely fall in this camp).
