Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?
If you think so or maybe someone told you, then I will have to tell you its totally wrong. There is no way Bitcoin is replacing fiat. Fiat will always remain as the main currency, and Bitcoin will also stay as powerful tech stock you can use for investments, making quick transactions, and a lot more.
Exactly, bitcoin will never be replacing fiat money. These two will run in two different streams. They may effect one another but one can never demolish other. As said bitcoins will work in investments, fast online banking etc. but it will not be overcoming fiat business that if so, surely cause many problems.