"I expect both markets to co-exist."
Well you are thinking rationally. But you are not thinking like say criminal mind. Say I'm superpowerful mafia and I can get it ALL why I would share anything with you?
Why was gold attacked and removed from financial system? (as currency backing) because it was threat to central bankers. Central bankers want in debt countries that they owe to central banks. Politicians like no limit spending, so they are on the same side. Gold backed currency was obstacle. As is now bitcoin.
There's a workaround that. Gold as money through Goldmoney. :)