Hello crypto bros!
Personally, I think that bitcoin won't become a new world currency like USD or EURO,
especially knowing very well that most countries are bordered around democracy, honestly it's really difficult to make such decisions because politics is at the center of the action.. though making it legal tender is very much possible but many countries fear that it could negatively affect the performance of their local currency and most central banks won't endorse it.
but I think it would be widely accepted and used. But looking at some projects like El Salvador I just keep wondering, are there gonna be countries that will try making bitcoin their official currency and make all transactions using it?
Do you think there gonna be any consequences for that?
Of course other countries will jump on the bitcoin buss as some economies are failing and will be out looking for a solution.
Consequences: looking back at the history of countries that have adopted bitcoin, most of their local currencies went under the bus and the only way to revive money spending was to use foreign currencies like the US dollar and bitcoin which was seen in Zimbabwe and Venezuela, but adopting a new currency means trashing/displacing your own currency for another but I don't it makes it any easy to bring back a new one after you try the like of bitcoin.
Why I think it's highly unlikely:
I think one of the problems is that it will be more expensive for people to use bitcoin than fiat. We can also say that it will create a huge load on the bitcoin network to make all these transactions so it will probably be even more expensive and slower because of that.
Devs have brought is the lightning network but honestly its not practical and the fact that "ordinary" transactions arent confirmed in real time this makes it difficult to adopt btc entirely though better alternative for these dying currencies.
Also worth mentioning that bitcoin is still pretty volatile and I don't see it becoming more stable in the future. And the whole system will depend on the miners and if there gonna be any problem with them, then the system will suffer. And another thing is that when people will see how volatile bitcoin is, they will try to exchange it for a more stable asset that will dump the price of BTC as well.
So as a result, I think that bitcoin will probably stay as an asset and anonymous money. And it's not a bad thing, we need this kind of technology to exist.
Agreed, volatility makes it difficult to make bitcoin an everyday currency but a user can lock in its value by exchanging it for a stablecoin to counter this, btw volatility works in two ways your portfolio could go positive or minus when markets are volatile so it is really not a bad thing tbh