The key thing missing from the fiat section is that the main way that governments give a currency value is by demanding that taxes are paid in it.

I don't believe that any government of a significantly sized economy will ever accept taxes in bitcoin.

I wrote about why here http://www.reddit.com/r/Bitcoin/comments/195k4o/the_case_for....

The short version is that the mining aspect of bitcoin is just too big of liability for reasonable people to accept due to the energy requirements.

I'm bearish on bitcoin and bullish on crypto currencies, if a low energy crypto currency comes along, possibly based on proof of stake rather than proof of work, then it will be unstoppable.