State currency 1:1 backed by bitcoin

[NotFuzzyWarm]

It won't happen because in the past fiat was backed by gold, but they abandon it due to volatility, Bitcoin volatility is even bigger than gold.

I believe the way the gold standard restricted their capabilities to issue currency was a larger concern than gold's volatility, but the result is the same, given that Bitcoin is not only more volatile than gold but also even rarer.

Exactly! Until the US went off the Gold standard the amount of fiat they could print was largely limited by how much gold to back it up was held. Going off the Gold Standard allows the US and other countries to print pretty much as much as they want to and 'let the global market' decide on the actual value of the fiat they print.

As for using BTC as a reserve - terrible idea. It just moves the 'Actual Value' another ephemeral 'standard' instead of an actual substance that has real-world usage and value.

[tottong]

It is possible for a government to "clog" the bitcoin network for months with frivolous transactions with high fees because they're able to print infinite money? the price of bitcoin could theoretically be 2 million/coin at that point and no one would be able to move any funds.

And this is impossible because every government has a policy on the issue of printing money and this idea is considered wild because if they could do it, it would have been a long time ago.
Countries need to consider fiat currencies and they cannot take policies that can make fiat currencies more chaotic.
When talking about theory this is possible but the implementation will make it difficult for them to get it.
For the issue of the price of bitcoin reaching 2 million, this will happen even if the government does nothing in the process because I believe this can be achieved.

[davis196]

State currency 1:1 backed by bitcoin can be used for global adoption.

What state currency are you talking about? The US dollar cannot be backed by BTC, because there's not enough BTC. Do you suggest that all national currencies should be backed by BTC? I can't see this happening in the near future. Backing a fiat currency with a deflationary asset simply won't work in the long term. Sooner or later, such financial system would collapse, because the reserves won't be sufficient to cover the increasing fiat money supply.
The idea that global BTC adoption decreases the price volatility of Bitcoin hasn't been proven. Bitcoin is still as volatile as it used to be years ago. The price volatility of Bitcoin will never decrease.

[fillippone]

Fiat currency - even its modern form as Central Bank Digital Currency - and bitcoin will coexist, I have no doubt about that. Even CBDCs will need quite long time to completely replace fiat currencies in all nations and all people. I can not imagine when in the world, there is no existence of fiat currency and only CBDCs exist and circulate in societies.

The future when Bitcoin replaces fiat currencies or CBDCs entirely won't happen even honestly I am a Bitcoin enthusiast and strongly believe in its bullish future.

In the end, only a form of money will prevail.
And I thing hard money backed by Bitcoin is the ultimate solution.
No one will accept fiat money, when there is a sound alternative around.

1 BTC is 1 BTC forever but it is volatile in price, not ony in purchasing power.

We are so early: the adoption is still quite limited. Volatility is the opposite side of the yield in staying long bitcoin.

[Synchronice]

It is possible for a government to "clog" the bitcoin network for months with frivolous transactions with high fees because they're able to print infinite money? the price of bitcoin could theoretically be 2 million/coin at that point and no one would be able to move any funds.

Yes, it's possible for the government to clog the Bitcoin network for months if they spam the network with multiple transactions and pay high fees for each transaction.

State currency 1:1 backed by bitcoin can be used for global adoption. It's not good solution since it's government money but it is far better than the current one. Running like banks but backed with bitcoin. Saifedean Ammous is a capitalist for example and he wrote great books on Bitcoin and fiat as well as economics. Bitcoin maxis i feel don't want to  kill all of the evil like when Saul did not kill the amelikite king. Reality is in this current time and for foreseeable future if you store a meaningful amount of wealth in bitcoin it’s better off with multiple custodians that self custody. Its ok for bitcoin to be in the niche of store of value (which seems to be what people expect from it and what its good at right now) and then gradually as adoption increases, and volatility decreases, it will be easier for it to take on more and more medium of exchange roles. i can see it happening. Bitcoin should be seen as a bedrock from which we can build on more stably. The beauty of living in the west or any high credit nation is that the economy itself is pretty safe long term and if it does fail you have much more to worry about than bitcoin. And for that reason the argument bitcoin is the only worthy investment is wrong.

What's the point of a state currency backed 1:1 by Bitcoin? Let it just be Bitcoin only. If we want Bitcoin's global adoption, we should improve it as a payment method to make it cheap, fast and easy to use. At the moment, it's only cheap when you have a few UTXOs and fees are low per sat/vByte.
Generally, if we want a better economy, we should forget Bitcoin and any similar solution. We should prioritize work, put much effort into the development of science, engineering, chemistry and so on, and put less effort into Hollywood and brainwashing, print less money out of thin air and then the world will live in a better harmony.

[peter0425]

State currency 1:1 backed by bitcoin can be used for global adoption.

What state currency are you talking about? The US dollar cannot be backed by BTC, because there's not enough BTC. Do you suggest that all national currencies should be backed by BTC? I can't see this happening in the near future. Backing a fiat currency with a deflationary asset simply won't work in the long term. Sooner or later, such financial system would collapse, because the reserves won't be sufficient to cover the increasing fiat money supply.

We should just let go of the idea of bitcoin somehow replacing fiat. We know that it is not possible mainly because of bitcoin's limited supply. At best, bitcoin will be considered an alternative currency and will be adapted all over the world soon enough. No need to aim for bitcoin to replace fiat.

The idea that global BTC adoption decreases the price volatility of Bitcoin hasn't been proven. Bitcoin is still as volatile as it used to be years ago. The price volatility of Bitcoin will never decrease.

Some may disagree. Bitcoin is being held by a lot of people now and even if it declines, they will keep holding this is what differentiates bitcoin of today from before. Soon maybe it will be a bit more stable as well

[Smartprofit]

I do not rule out that over time Bitcoin will receive the status of a reserve currency and an integral part of the gold and foreign exchange reserves of central banks of all countries.

Also, it is necessary to take into account the fact that Bitcoin is a decentralized protocol for transferring value in virtual space. That is, on its basis, it is theoretically possible to create other digital assets, as is the case in networks such as Ethereum and Solana. And these digital assets can be, in particular, fiat money.

So far, this is a very distant prospect, however, if the idea of ​​​​CBDC and stablecoins fails, then this idea can be implemented in practice.

As for high commissions in the network, such a problem may indeed arise in the future (although now the commissions are small). In my opinion, if the commission is so large that it is impossible to make a single transaction, then Bitcoin developers will come to the rescue and make appropriate changes to the code.