The possibility is remote in my opinion.
Bitcoin's extremely limited supply leads to hoarding. https://en.wikipedia.org/wiki/Gresham's_law
If it succeeds in terms of mass adoption and institutional adoption, there will be very strong demand for BTC for long term wealth storage, but it will be too expensive to use as an everyday means of exchange or high volume settlement mechanism. I don't see it becoming a dominant reserve currency for those reasons.
I don't mean to say nobody will be transacting using BTC or Layer 2 protocols. I just think it's unrealistic to think BTC will ever have monetary velocity anywhere near the USD.
Bitcoin's extremely limited supply leads to hoarding. https://en.wikipedia.org/wiki/Gresham's_law
If it succeeds in terms of mass adoption and institutional adoption, there will be very strong demand for BTC for long term wealth storage, but it will be too expensive to use as an everyday means of exchange or high volume settlement mechanism. I don't see it becoming a dominant reserve currency for those reasons.
I don't mean to say nobody will be transacting using BTC or Layer 2 protocols. I just think it's unrealistic to think BTC will ever have monetary velocity anywhere near the USD.
I agree! Supposed we think of an imaginary future where in Bitcoin's price reached $1 million each, I wouldn't think anyone in their right mind would buy a 200 sats cup of coffee = $ 2 using BTC assuming its transaction fee is almost $ 2 or more than the price of goods it was used to buy. Imho.
