These problems don't seem to bother the vast majority of people. There are a few use cases where they can make a genuine difference, but they're swamped by the number of people using it to circumvent a valid and (reasonably) ethical law.

As for violence, that's literally one definition of government: a monopoly on the legitimate use of force. It's not just currency that derives its value from that. It includes your own physical safety and all of the coordination that allows a densely-packed society to function.

If you wish to reconsider that, you'll have to go further back than trivia like currency. You'll have to reinvent everything about the social contract that makes government work. Otherwise you're just layering a band-aid on top of a much more significant basis of your daily life.

It's not a competitor because it can't scale at all and is a gigantic space heater too (which would be a point of discussion if the advertised functionality worked at least). So the guys governing bittoken network invented a lightning system. Which at close inspection is a highly centralised system, separate from the original bittoken network, and working exactly as current banks. People deposit btc in it, then bank (node) issues you some derivative IOUs which which you trade with others, then transactions are settled between banks (nodes) only.

Basically tokenbros are reinventing banks, only with zero oversight and governed from offshores. Amazing alternative I must say. /s