I don't see the fiat currency facing out at least not now and not in the near future. The massive adoption of the bitcoin and crypto technology won't stop people from using the fiat because they both have their own benefits and limitations.
People mightn't accept Bitcoin instantly because they're used to using fiats all their lifes but as the adoption goes on, people will used Bitcoin. Bitcoin can't shrink the economy but it'll improve it. Everybody owning Bitcoin will make them to have a different thinking about money and will become more functional to the society, be financially informed and not just a liability. Having Bitcoin makes you an investors and that's how people will begin to reason and it affects other things in life. I don't see anyhow having the thinking of an investor is going to shrink the economy. I'll improve it as people begin to invest in businesses and start up theirs making more job available for people to work, add value to the economy and everybody is happy. With more job creation, the economy will be the one benefiting the most of ias money keeps circulating in and out.
Bitcoin will neither shrink the economy nor improve the world economy. As far as I know, global GDP is over 100 trillion while bitcoin capitalization is only 1 trillion, how could it significantly impact the economy?
Bitcoin is not the only investment or the only inflation hedge in the world. If people still don't have a basic understanding of finance, of how the world economy works...then even if bitcoin is adopted and becomes more popular, it can't change that.
To improve a country's economy, we need to create more jobs and help people earn high incomes. I want to ask, how can you use bitcoin to create more jobs when it is just a currency or an asset?