US is a strong country with a strong economy, I guess almost all country accepts dollar and I can say it's dominant. Though in this world, fiat inflate it's value but not so fast with dollars. People has the choice whether to invest their money in bitcoin as we believe it will be big in the future but not to the point that it's going to replace it.
Exactly. It will be extremely difficult for BTC to replace fiat currencies like the USD, but at least it makes it an alternative way to transact with other people in a freely and decentralized way. Maybe sometime in the future, we will get to see a new version of USD backed by the government, but this time using block chain technology which would make transactions near instant and at the same time secure.
Since it is possible to trace transactions much easier with block chain technology, than cash itself, then I think that this will be the path that the government will go towards the future. It this happens, then there would be practically no privacy at all since the government would be watching every single transaction you make, at any given point in time. Just sharing my thoughts.
The government hardly has any problem tracing your fiat transactions today. Banks won't open an account for you if you don't provide the complete details of your identity. So why should they stick to the blockchain technology and lay themselves out to trace all these innumerable transactions if they can obtain all info they need through banks?
If cash should get removed eventually, it will be digital fiat that is going to replace it