The are incompatible because the only logical trade is to sell fiat and hold Bitcoin.

They can and will coexist but only until enough people figure that out.

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Right. Currently they are coexisting and the window of time in which that can happen is temporary in my view.

Agreed all fiat currencies collapse sooner or later. However, people and governments will likely always try to play some form of fiat games to attempt to get something for nothing.

The difference is that now with the option to hold #Bitcoin it becomes much more difficult to continue the fiat scharade.