In the early years, many hyped up people in the public used "deflation" as a form of argument.
Actually the utility of bitcoin or any other cryptos doesn't actually create a deflation, it follows inflation and "correct" it with new variables in the equations so the economy remain simple but more tech-influenced.
It is also a way to earn extras into a user's pocket as well. It has the ability to create a new economy by itself if adoption increast to about 10% world population. That is what banks and central banks are afraid of.
I agree. currently the data on bitcoin users is only about 1% of the world population. we can imagine if it increases by 10x, of course this should be anticipated by the government so that it does not cause turmoil
Meanwhile, governments are frantically coming up with regulations so that they will not to be "circumvented" and still have taxes to levy on. They should be seeing crypto as a great disruption to their reserves... since most of the reserves don't really have real money ever since the paper currencies are no longer backed by gold. 😅