Hello crypto bros!
Personally, I think that bitcoin won't become a new world currency like USD or EURO, but I think it would be widely accepted and used. But looking at some projects like El Salvador I just keep wondering, are there gonna be countries that will try making bitcoin their official currency and make all transactions using it?
Do you think there gonna be any consequences for that?
Why I think it's highly unlikely:
I think one of the problems is that it will be more expensive for people to use bitcoin than fiat. We can also say that it will create a huge load on the bitcoin network to make all these transactions so it will probably be even more expensive and slower because of that. Also worth mentioning that bitcoin is still pretty volatile and I don't see it becoming more stable in the future. And the whole system will depend on the miners and if there gonna be any problem with them, then the system will suffer. And another thing is that when people will see how volatile bitcoin is, they will try to exchange it to more stable asset that will dump the price of BTC as well.
So as a result, I think that bitcoin will probably stay as an asset and anonymous money. And it's not a bad thing, we need this kind of technology to exist.
Won't deny anything you are saying here. People that say bitcoin will replace fiat currencies very soon, are actually being delusional. And most of them say it because they are holding crypto currencies and they want the price to go up as soon as possible. Its those same people they will eventually end up selling their coins and enjoy their profit in fiat currency. it's hard to imagine any crypto currency replacing fiat currencies within few years. The volatility and other flaws/limitation make it a tough to replace fait currency and traditional banking system. As for El Salvador's experiment in making bitcoin legal tender, it's too early to tell how things are going to be in the long run.