I think you are misinterpreting the placement of trust when you're positioning your responses. You're saying that there are advantages to a monetary system that relies on "objective" third parties to adjudicate disputes, combat fraud, and stifle illicit/illegal activity. You're not wrong that these are useful utilities. It's why I don't believe Bitcoin will ever replace them. It will certainly coexist though.
The trust Bitcoin removes is the central banking component. We rely on governments who have shown wanton disregard for the value of their respective dollars by printing limitless supplies and dancing with the risk of hyperinflation. When we save money in a given currency, it's because we trust that currency as a store of value or we park it in a vehicle that returns value or at least staves off depreciation of value (savings accounts, bonds, stocks etc.) Bitcoin allows you to park your savings in a space that does not require you to trust any particular government's monetary policy. Maybe you're entirely comfortable with the USD or the Euro but there are folks in less stable countries with which Bitcoin is a godsend.
What do you do if you're a billionaire in China and you said something bold online about an atrocity your government has just committed? You hear that you're about to be disappeared so you wish to defect to another country. How do you move your wealth? Can you move it via the existing banking digital network? No because the banking system is controlled by the government and that type of activity is red flagged and stopped. Can you move it all in cash or gold? Perhaps, but it's a huge undertaking logistically and very obviously shows your intentions.
Bitcoin allows you to relocate the entirety of your wealth anywhere in the globe with literally just your brain power. You can memorize your seed and leave to where ever you want. That is insanely powerful freedom which is the result of removing the "trusted" third party through decentralization.
The trust Bitcoin removes is the central banking component. We rely on governments who have shown wanton disregard for the value of their respective dollars by printing limitless supplies and dancing with the risk of hyperinflation. When we save money in a given currency, it's because we trust that currency as a store of value or we park it in a vehicle that returns value or at least staves off depreciation of value (savings accounts, bonds, stocks etc.) Bitcoin allows you to park your savings in a space that does not require you to trust any particular government's monetary policy. Maybe you're entirely comfortable with the USD or the Euro but there are folks in less stable countries with which Bitcoin is a godsend.
What do you do if you're a billionaire in China and you said something bold online about an atrocity your government has just committed? You hear that you're about to be disappeared so you wish to defect to another country. How do you move your wealth? Can you move it via the existing banking digital network? No because the banking system is controlled by the government and that type of activity is red flagged and stopped. Can you move it all in cash or gold? Perhaps, but it's a huge undertaking logistically and very obviously shows your intentions.
Bitcoin allows you to relocate the entirety of your wealth anywhere in the globe with literally just your brain power. You can memorize your seed and leave to where ever you want. That is insanely powerful freedom which is the result of removing the "trusted" third party through decentralization.