Almost all the downsides you listed apply to cash as well which is why people don&#x27;t keep cash under their mattress anymore and don&#x27;t do large cash transactions.<p>Bitcoin should be seen as a currency first and a payment system second. Nothing should prevent the current banking system from adopting it as a currency while keeping all their existing checks in place. Credit cards could support BTC denominated payments and still have all of their chargeback policies in place.<p>In that world, doing a large Bitcoin transaction would be the analogous of moving trucks of cash around and keeping a large amount of Bitcoin would be like hiding tons of cash in under your mattress (reserved for experts). The majority of payments would be &quot;off chain&quot; while still allowing for people to opt out.<p>You might ask what&#x27;s the point of Bitcoin then? Well, I think it would still have a couple of benefits over traditional currencies like USD:<p>- Supply of currency not controlled by any government or entity<p>- Easier to &quot;opt out&quot; from system than with physical cash<p>- Transparency (institutions that wish to do so could use the blockchain to be transparent about their finance)<p>- Efficiency (though there&#x27;s been a lot of criticism about the energy consumption of Bitcoin mining, think of all the human capital, real estate and transportation cost that goes into physically moving and securing cash)