The cats and dogs line was a joke. In this case, I added the word literally to mean "usually when people utter this phrase they actually mean it figuratively, but I'm making such a strong statement that I'm really trying to say this time it's for real". Its extra hyperbole for comedic effect.

I take your point that a lot of pensions hold real property, but they also hold a significant amount of dollar-denominated assets. They don't have to go to zero for my raining cats and dogs point to hold, they just have to decline a significant amount.

Your second point is actually missing my point. I'm specifically referring to the transition in which anyone holding dollars will find their dollars worthless and anyone holding bitcoin will become filthy rich practically overnight. Think of it like a bank run. After the transition, business will continue as normal in the new currency.

Also, it is a good point that anyone holding debt denominated in dollars will find their debts disappear. I'm not sure this is a positive outcome.