Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
Bitcoin was created to be an alternative to fiat this is because people will always use the latter. If Bitcoin gains acceptance by the government and the transaction fees still remain low, more people might choose to use it more than fiat. So, it will be common to assume that traditional banks might face a reduction in transactions if using Bitcoin is faster and cheaper. We are already experiencing strict regulatory laws in many countries. The government will keep making laws that will increase KYC, thereby increasing centralization.
But is the idea of bitcoin becoming a currency a reality when we only see it as an investment and not too many people consider it an alternative to fiat?
Do you think the government will agree and legalize it as an alternative currency while they cannot control it? Besides, how long do we have to wait for a real solution to make bitcoin's transaction fees cheaper and transaction speeds faster?
All of your “what if” ideas are highly unlikely and even impossible. We should look at reality and not talk about “what if” scenarios.
You are not far from the truth mate, it is clear that the idea of mass adoption of Bitcoin as a currency is not visible. Many people are comfortable with it as an investment. It is also obvious that the only reason institutional investors buy Bitcoin is not to use it as a currency but to make a profit. However all hope is not lost, most Bitcoiners still believe that there will be a time when Bitcoin will be used as a currency. Maybe the price might become less volatile in the future, making it popular as a means of payment. We also hope that transaction fees will be reduced and people will devise alternative means of using Bitcoin as a currency. The government will keep making laws to control the Bitcoin industry, however, some nations might not be as strict as others. There will always be Bitcoin-friendly nations where regulations will not be too strict. The dream of freely using Bitcoin as a decentralised currency globally might seem impossible, but it is still achievable.