The major governments of the world have for some time been laying the groundwork for their own national cryptocurrencies. Does that matter? Yes, it matters a lot. Bitcoin will be a direct competitor.
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How likely do YOU think this scenario is? Although you might say this is only speculation, IT IS A FACT that these countries are working on cryptocurrencies of their own.
Not even remotely likely. It's like saying the US government will ban Fedex and UPS because they are direct competitors to the Postal Service.
Also, Bitcoin is not a direct competitor to nations upgrading their legacy digital money systems to cryptocurrency (CBDC). It is inevitable that nations start issuing their fiat currencies as cryptocurrencies because it is a superior technology. This inevitability was brought about by the invention of Bitcoin. But Bitcoin is very different than CBDC's. In fact CBDC's aren't anything different than the fiat that is already used, it's just a tech upgrade. Why would nations suddenly ban bitcoin just because they gave their own monetary systems a tech upgrade?
So, no, it doesn't matter at all that nations will eventually all upgrade their digital money systems to use cryptocurrency tech. It's not changing anything about fiat itself. Nothing in the bitcoin to fiat relation changes simply because nations upgrade their monetary tech. This does nothing to make it more likely nor less likely that nations will ban bitcoin. It is a non-factor. And Bitcoin is not going away, that much has been obvious for a few years now, so the answer is no, bitcoin is not going away.