Bitcoin definitely has the capability to do so, but the government aren't gonna let their fiat be the 2nd option.

That's why each governments around the world are making regulation carefully to ensure that, but here's the thing, even it's like that, bitcoin will still be the most popular currency used worldwide, it's just matter of time and adoption.

Even right now adoption is increasing, more and more e-commerce accept crypto, it's inevitable.

Fiat currencies are from governments and they have no caps of total supplies as well as there is no term like fiat currency market cap.

Governments will not let it happen and people are more familiar with fiat currencies and in future there will be existences of CBDCs as well. Governments will try to force citizens using fiat currencies and CBDCs as most frequently as possible. With many barriers from governments, Bitcoin has massive challenge to beat fiat currencies and CBDCs and I believe people will never dominantly consider Bitcoin blockchain as their only or main favorite choice for transactions.

There are available comparisons like you said in the following book.
The Bullish Case for Bitcoin.

That is not dominance just because some random website calls it that. It is market cap ratio and is the ratio of the single bitcoin's market cap divided by the sum of thousands of shitcoin market capitalizations! That ratio doesn't even make sense to compute let alone be the representative of dominance!!!

You are comparing apples and oranges in both cases.
Altcoins are mostly useless playthings created to make a quick buck while bitcoin is a serious payment system created to actually some a real world problem and is actually used. So altcoins and bitcoin are not exactly in the same category.

It's the same with fiat. Fiat is a currency created in a completely centralized way and is a part and parcel of the broken global economical structure. It needs to exist as long as the system works like this without an alternative. And that alternative to economy is not bitcoin, bitcoin is just an alternative payment system for the individuals.

Bitcoin doesn't need to dominate to be a good alternative.

If anything, the less grief they would have over BTC, the faster its adoption would go.

Would you say that BTC is suited for daily usage at all? I wouldn't think so..

When you mean dominate, in what sense do you mean? Do you mean it will be more popular and more widely used than Fiat? If that is what you mean, then it will not be happening anytime soon. Fiat will always be the number one currency in different countries. There is simply no way governments of the world will elevate something else over their own. Bitcoin is not centralised and can't be controlled; most importantly, it's not a national currency, it's global.

But if you mean dominate in price, Bitcoin has been dominating every single currency for years now. If Bitcoin crashes to $100 today, it will still be more valuable than any other currency in the world. 

Bitcoin doesn't really depend on fiats. If all countries completely ban their citizens from buying bitcoin it will still continue to flourish and grow at the right pace. Bitcoin growth is mostly dependent on its good ideals and developments that benefit it. They are mostly what make it valuable and the price to increase.
In a zero fiat situation, minted bitcoins will continue to circulation within the Bitcoin economy, to pay or reward people for working, for contributing to Bitcoin or for their products. The more good works or contributions that benefit Bitcoin, even without earning bitcoins, the stronger the demand or the more valuable Bitcoin becomes, this pushes the price higher... And the fiat people also benefit from this.
But if lots of people are dumping fiats for Bitcoin, all the governments could do is to regulate things at their own end. Bitcoin is beyond their area of jurisdictions.
By the way, It would be easy to stop citizens that depend on their governments economically, financially etc, from buying Bitcoin, but difficult to stop the independent ones.

Most altcoins are worthless and I observed that people are getting to understand this fact. Even the so called $TRUMP memecoins made more people poor than rich. Bitcoin will keep dominating the crypto market because of its reputation and wide range acceptance.
 

How will you compare a currency that can be printed unlimitedly with Bitcoin? Fiat will continue to serve its purpose as a centralized medium of exchange. While Bitcoin will continue to serve as a decentralized currency for people who value privacy and freedom.

The increase in strict regulatory laws is a plot to force people to use Bitcoin through centralized channels. It a well-arranged plan to keep controlling the people.

This is true; this isn't the only reason. Like other users already mentioned, Bitcoin's initial purpose wasn't to replace fiat currencies but to coexist. I never believed that Bitcoin was able to dominate fiat currencies; Bitcoin itself has many limitations that do not enable it to do so. The transaction fees are high; if the network is congested, then there are significant increases in fees and delays, while the majority of people are unaware of what it is, and an even smaller percentage know how it works.

Even we in the forum don't use it for transactions, mostly because we consider it an asset, but also because it's inconvenient.