Even if the USD vanished completely and Bitcoin took over, there is basically no reason to believe that the US military would go away or that the US would stop interfering in foreign markets. And banking regulation/enforcement would just switch to targeting exchanges/platforms, blocking specific coins, and move on.
Independent of the whole cryptocurrency thing, there are good reasons to want better payment methods that give people more freedom/privacy, but "this will dismantle the military-industrial complex" isn't really one of them. Last I checked, there's nothing in the Bitcoin protocol that says it can't be used for bribes, oil, or guns.
It's just a wild fantasy. Imagine going back to the Cold War and thinking that if the USD wasn't around that the US and the Soviet Union would have stopped building nukes.