Yes, if Bitcoin's TPS never increases, then it will never attain the "alternative option" Nash is describing.
So, either Bitcoin becomes the "alternative options", which leads to the "international gold" that pegs the
"international currency", or Bitcoin fails because it is being held back in order to facilitate the role of
"international gold" prior to the time in which it will occur.
So I disagree with you because Bitcoin is too radical for the international body to accept as their own.
When the people in this new world are subjugated and "kicked off" their system, they have Bitcoin so
that they may survive (the "alternative option").
This is your Satoshi complex. I didn't learn about bitcoin from Satoshi, I learned about it from Nash. He speaks about the macro economics implications and your perspective doesn't, and so your conclusion is not actually founded in science and accepted theory (hint: szabo's is!).
When the tps doesn't increase bitcoin transactions get costly. This pushes the everyday person's coffee purchases off the network, but only because a higher value player is finding utility in the transactions. This doesn't at all mean that average joe cannot use bitcoin as an alternative savings, it means they cannot make a lot of transactions. They can definitely hodl like we have traditionally used gold for.
If we mess with the tps, I argue, this phenomenon wont take place.
And the banks cannot ignore it, because if bitcoin is going up in value over time, then the banks that hold it will win and those that don't will lose, same with nations, thats why bitcoin isn't very illegal, its not economically feasible to not have it.
It's a reverse bretton woods. No meta players wants this scenario to unfold but simultaneously no player wants to miss the bus.
And then as bitcoin becomes relevant as a major settlement system it will affect the quality of our money in the way, for example, smith describes here:
The whole paper money of every kind which can easily circulate in any country, never can exceed the value of the gold and silver, of which it supplies the place, or which (the commerce being supposed the same) would circulate there, if there was no paper money. If twenty shilling notes, for example, are the lowest paper money current in Scotland, the whole of that currency which can easily circulate there, cannot exceed the sum of gold and silver which would be necessary for transacting the annual exchanges of twenty shillings value and upwards usually transacted within that country. Should the circulating paper at any time exceed that sum, as the excess could neither be sent abroad nor be employed in the circulation of the country, it must immediately return upon the banks, to be exchanged for gold and silver. Many people would immediately perceive that they had more of this paper than was necessary for transacting their business at home; and as they could not send it abroad, they would immediately demand payment for it from the banks. When this superfluous paper was converted into gold and silver, they could easily find a use for it, by sending it abroad; but they could find none while it remained in the shape of paper. There would immediately, therefore, be a run upon the banks to the whole extent of this superfluous paper, and if they showed any difficulty or backwardness in payment, to a much greater extent; the alarm which this would occasion necessarily increasing the run
