Hello crypto bros!
Personally, I think that bitcoin won't become a new world currency like USD or EURO, 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?
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. 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 to 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.
1. Don't call us crypto bros, that's a negative term used towards people who shill shitcoins at people. It's an insult.
2. Most countries will not make Bitcoin their official currency. No one should ever expect that.
3. Bitcoin volatility will of course continue going down over time. It will never be stable because it trades in an open market (but national currencies aren't stable either). A lot of the stability of national currencies is that they are the unit of account so they are the base unit. Anyway Bitcoin volatility will go down a huge amount over time but it will always be more volatile than national currencies because it is not manipulated by politicans/bankers to be fairly stable and also it is unlikely to ever be the unit of account by itself so it will always be viewed as being worth x amount of fiat. That's fine.
4. Bitcoin depending on miners is not a problem. They are competing for economic incentives in a brilliantly designed system. There is no problem there.
5. Bitcoin and fiat will coexist. National currencies will continue to be national currencies. Bitcoin will grow into the world's currency - the alternative to national currencies but for the entire world. Bitcoin started as a speculative asset, it is now starting to move into a long term store of value / savings currency, it will eventually be able to be a shorter term savings currency as well as a spendable currency. This is the natural transition of good money that grows organically. This is Bitcoin's path. It'll take decades, but it'll get there. It is on its way to becoming the world currency, but that doesn't mean national manipulated "stable" fiat currencies won't continue to exist. Bitcoin will just be the alternative world currency to them.