So I have been wondering what if a Government somewhere in the world wants to legalize bitcoin or any other crypto for that matter. How would it work.
First of all the government will be trying to legalize a means of exchange that it neither controls the demand, supply and creation. It can't even be used as a means of effecting economic change like other currencies can be used by controlling money supply and interest rates.
And if we are equating bitcoin to the possession of assets like gold or diamond. They cant even control bitcoin mining, like they issue licenses to mine gold or diamond
So is bitcoin being a legal tender even possible and how would it work.
It's important that you are clear of the differences between being legal and being legal tender. Bitcoin is legal in the majority of countries but it is legal tender in none. Bitcoin to my mind will never become a legal tender due to its nature, you hinted at some of the issues such as that the money supply cannot be controlled and used to influence the economic outlook.