In reply to Chris Farlee.

"What about rewards, dispute, and fraud protection?"

These are not free anywhere.

May I ask if you spend your digital, centralized fiat carelessly, knowing the possibility of a chargeback?

I do not think so. It's a hassle to initiate a chargeback process (EU banks even charge money for it), and if you do it frequently then it gets suspicious and you can easily find yourself kicked out of that bank.

Also, on the other side, merchants need to build charge back fraud into their pricing, so it has many trade offs

Reputation is key, both in fiat and bitcoin world. Furthermore, bitcoin offers multisig (p2sh) which can be used to create a bitcoin equivalent of a "bank account", which only allows spending when n of m holders of the "account" authorize the payment. This way escrow-ed deals can be easily done, protecting all parties.

As for insurance, some companies already offer insured bitcoin balances (Circle for example), but they have control over your keys and they are basically acting as a bank.

Mind, that bitcoin is still in the early stages and constantly being developed.

The most important thing is the possibility to exit the fiat system with the arrival of bitcoin.

Personally, I prefer it, despite its infancy, involved risks and growing pains.