Today we saw bitcoin hit an all time high of $23k while its traditional counterparts are suffering a decline in value. Historically, when someone desires financial stability, they naturally go for safe investment is, such as gold, stocks, real estate. But with the outbreak of the corona virus pandemic we have experienced a shift in global economy, countries are facing inflation. As a result many individuals are beginning to see Bitcoin as a safer investment than its counterparts. Countries are slowly adopting crypto as a means of payment. Will bitcoin eventually dominate the world economy and replace traditional currencies?
While bitcoin might dominate the world's economy, it cannot replace traditional currencies. Not now, not even 20 years to this time.
You should know that before bitcoin can completely eradicate fiat or traditional currency, it has to be used by every individual in the world. There are limitations to a development such as that.
First of all, bitcoin gives the power over money back to the masses and out of the control on banks and even the government. You should know that the government won't just give in easily to bitcoin. At worst, they'll tag it illegal and at best, they'll create a government-backed cryptocurrency so that they still have control.
Secondly, bitcoin is a digital currency and as such cannot be used in areas where there is no access to education, electricity and the internet. You should know that areas like this still exist especially in developing countries in Africa.