It appears that Bitcoin fanatics are now the old gold bugs. It all comes from a paranoid and dangerous mistrust of our democratically elected government. No system is perfect so no guarantees can be made for any "efficiency". At least with a fiat currency system backed by a sovereign government any inefficacy on the part of the currency issuing government becomes someone's asset in the private sector. I can't imagine the calamity that would result if we tried to function with the amount of dollars in the system prior to our leaving the gold standard in '34. We certainly would never have gained our status as a net importing nation, so we wouldn't have most the technology you allude to.

The government's loss is the private sector's gain and its deficit and debt are the only source of such monetary assets the private sector has that is able to retire private bank debt or be net saved. The "real" theft by the government would be a "balanced" budget that leaves no store of value for its commerce, clawing back all payments in a futile attempt at making the government's accounting like our household budgets. It's been tried and has never ended well.