I suggest that you read "A Free Nation Deep in Debt: The Financial Roots of Democracy". You don't understand how this stuff works, particularly the relevance of "fiat" currency versus an asset-based currency.

You also forgot to address the key issue with Bitcoin -- the scam aspect of it. The first half dozen people who started mucking around with Bitcoin control millions of bitcoin.

Why is it bad for the Fed to give California "free money", but OK for some Japanese programmer to give himself and his friends "free money"?