>Despite the narrative, Bitcoin isn’t really competing with traditional banking at all. It's additive. It has become another asset for banks to sell to people, collecting relatively high exchange fees in both directions on the trade.
This is certainly the current narrative, and I think that you do a very good job at illustrating what CB's role plays in all this. However, most people that made money in crypto are leaving their assets in crypto, they are not giving it to banks or exchanges for custody. Even if they want to hold dollars, they do so in DAI or USDC (indirect bank deposit ATM). So while this is still a very small threat to the banking industry at the moment, the seed has been planted, we are still very very early. The current banking industry has almost 200 years in the making, it won't be undone in 5.
This is certainly the current narrative, and I think that you do a very good job at illustrating what CB's role plays in all this. However, most people that made money in crypto are leaving their assets in crypto, they are not giving it to banks or exchanges for custody. Even if they want to hold dollars, they do so in DAI or USDC (indirect bank deposit ATM). So while this is still a very small threat to the banking industry at the moment, the seed has been planted, we are still very very early. The current banking industry has almost 200 years in the making, it won't be undone in 5.