Does bitcoin fail if it's never utilized as a global peer to peer electronic cash system? What if 99% of the coins are held by large institutions, thus requiring trusted third parties to exchange the coins with each other.

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I use it as a p2p electronic cash system and so do many others. Bitcoin has already succeeded. If 99% are locked we can transact with what's left and they will be epic sats

Agreed ahaha zapping around 21 trillion sats would be enjoyable