With Bitcoin, we're talking about a concentration of wealth (on early miners and "hodlers") orders of magnitude worse than with fiat. It benefits mostly a tiny fraction of the human race.

Yes but it’s controlled by like 3 people. They can revert the chain and have done so in the past.

How is that better?

Mining is more decentralized now than it was when Chinese pools had 60% of the hashrate.

We're also rolling the Stratum v2 protocol, which will considerably improve the decentralization.

https://braiins.com/blog/stratum-v2-bitcoin-decentralization

Let's not forget that the entire point of "proof of work" is to waste electricity and waste electronics in persuit of making pointless calculations until one is randomly correct. What a great system!!

The point of PoW is to make money hard to create, unlike state money (fiat).

You could say gold, silver or basically any store of value use PoW too: they require a considerable amount of time and energy to obtain. If you could just use dirt as money, it would be worthless as anyone could produce some effortlessly. It's the basis of sound money.

Bitcoin currently uses about 85TW/year of energy for its mining. Estimations for the traditional finance system seem to be around 2000TW/year. Factoring the amount of transactions, Bitcoin is about 50 more efficient per transaction (accounting transportation, paper and coin production, datacenters, energy used by banks). Its energy usage is also independent of the amount of transactions, so it becomes more efficient as the number of transactions grow.

There's no separation of money and state - unless the state allows it.

Doesn't seem to go so well, does it?

Relative to what?

Bitcoin actively took a decision to not be a currency but to be a "store of value".

It cannot function as a currency because it's too slow (you can't wait for ~10 minutes to see if your transaction for included in the block in order to pay for a coffee).

In order to separate State from Money, we need a currency. Until I can buy a coffee with my hypothetical FreeCoin, I need to rely on fiat currency supplied by someone both I and the barista trust (like a government).

This isn't huge, it's shit

The Bitcoin blockchain is a layer 1, it acts as a settlement layer, or put simply, a notarization layer, or a store of value layer. It's not intended to be used as a full scale transaction layer as it couldn't scale and would bloat the blockchain.

Large amounts of transactions should be made off-chain through payment channels, with only the final balance between the parties written to the blockchain. This what layers 2, sitting above the blockchain, are about.

Common layers 2 are Lightning and Liquid, the former being the most widely used.

https://www.bitcoin.com/get-started/what-is-lightning-networ...

https://www.investopedia.com/terms/l/lightning-network.asp

It might interest you to note than clightning is written by Rusty Russel, mostly know for its work with the Linux kernel, and also author of iptables.

We're also seing some layer 3 like RGB for smart contracts, but I digress. Suffice to say, Bitcoin is more than its layer 1 and store of value.