Doesn’t it though? Not saying cocaine would be a viable/scalable currency, but it’s nonetheless a store of value. Like trading bread before coins existed.
A functioning Currency is quite different to an asset that can be exchanged for good; come and bitcoin have no inherent value, only a value based on timing and luck. Can I pay my taxes with cocaine? Unlikely! Would (Too risky) accept BTC if I sold my car? No way! (Too volatile)
If the state releases a currency, of course you could pay taxes with it - but that’s not the point. With decentralization of currency, there is bound to be resistance from the old guard.
There is, literally, nothing to fear from bitcoin: it will never, ever reach the point of a functioning currency...as a paid up member of the Old Guard, I can assure you I rest easy!
No really a matter of 'winning'. I foresee a split in society: the elite will be using crypto, the lower classes will be forced to use fiat through government welfare and subsidising.