Given the unstable nature of cryptocurrencies, and the untraceable nature, would you suggest it wise for countries to adopt Bitcoin as a legal tender?
Accepting Bitcoin as a legal tender in a country is one, relying on it as your main currency to function your economy is something completely different. At the moment Bitcoin is not ready to function as the world reserve currency where everybody could trade with each other without many limitations. On paper it would be a big step forward to make international money transfers more efficient, but the Bitcoin price is too volatile at the moment. I can also understand why governments are so reluctant to adopt Bitcoins as their new legal tender. Having Bitcoin as the new currency in a country means to give up a lot of freedom for it's financial and monetary policies. Politicians all live in the moment and only worry about the next election. For them it is important to have full control over the money supply. Whenever politicians need money they can print more of it and increase the debt of the country. With bitcoins this is not going to be as easy, politicians will have to be more responsible with their budget and can't spend as much as they like. It doesn't seem realistic that politicians would vote to change the system in such a way.