With that scenario Bitcoin has lost everything. Congratz to everyone who celebrates the merge between govs and Bitcoin and banks and Bitcoin.

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I mean, okay. Even if the main way people use Bitcoin is through a bank, it's auditable, immutable, scarce, and has to be used within the consensus rules. The Bank's incentives align to be honest actors because they take transaction fees by running the routing nodes. Charging too much, you switch to a cheaper bank. The point is that Bitcoin doesn't solve the problem of people, it just makes them play more fairly.