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?
The only reason bitcoin was able to get to the level it is now is because it has no interference from any
organization or central bank. I think the reason why most countries have useless currencies(sorry to say) is because of the rules put in by the central banks.
Bitcoin is not a regular currency because it is limited in supply, the government does not want to have this kind of system in place as for sure there will be a problem of shortage, when there is a shortage they can easily print money while it's not possible in bitcoin as it is design to have a fixed supply.
Bitcoin is not just a currency because of it's limited supply, it is also an investment so it could be an asset or currency depending on how you define it.