Have your ever imagined a world where Bitcoin is the predominant currency for mainstream payments? A world where Fiat no longer exists as people rely on Bitcoin as a global unit of account. That means, people will no longer value things based on Fiat, but rather Bitcoin itself. You would pay for things directly on Bitcoin (for instance 0.000025 BTC for a cup of coffee) without the need to worry about its current exchange rate (or price) relative to Fiat. If that happens, then Bitcoin will "stabilize" effectively proving its use as digital cash. With a country like El Salvador adopting Bitcoin as legal tender, we may be one step closer to "hyperbitcoinization".
Do you think it's possible Bitcoin will become a "global unit of account" in the future? If not, why? What would a world without Fiat really look like? Your input will be greatly appreciated. Thank you.
I think it's possible only with second-layer solutions. The blockchain cannot handle the amount of transactions that would occur. Also, given the volatility of Bitcoin, I think it would still be useful to set prices in something different (at least, for internal pricing purposes), and then update the actual price in BTC in real time (or every few hours). Using Bitcoin as money won't automatically make the coin more stable. Volatility might just be seen differently. Say, one day you spend 0,0001 BTC on a cup of coffee, and in a few days you can afford to buy three cups for 0,0002. That's how you'd know that the value has changed, and what USD currently does is simply gives a useful reference point, but it doesn't even have to be in fiat.Do you think it's possible Bitcoin will become a "global unit of account" in the future? If not, why? What would a world without Fiat really look like? Your input will be greatly appreciated. Thank you.