I’ve heard mixed thoughts on if each country eventually created their own cryptocurrency, would Bitcoin still be number 1 or would it fizzle out. Some say it would legitimize Bitcoin even more, others say it would make Bitcoin obsolete.
What are your thoughts?
The good thing about Bitcoin is that it is global. Therefore, it is not in any way controlled by any government and central bank. And its use is perfect for cross-border transactions. Any cryptocurrency or digital currency designed by governments and central banks are basically domestic. They adhere to domestic laws and they are not global in a sense that they are not completely different from fiat. Countries all over the world have their different versions suitable to their economy and circumstances.
And, of course, a cryptocurrency made by a government is hardly decentralized, if at all. The basic features between Bitcoin and a central bank-created crypto is definitely different. This is enough reason why Bitcoin will never become obsolete in the face of national cryptocurrencies of different countries.
It somehow legitimizes Bitcoin because it indirectly approves of it; these are all Bitcoin-inspired so to speak, imitations of Bitcoin, albeit poor.