Well, i just thought, if bitcoin become a currency of one Country, maybe it can destroy that country? Think of it, Bitcoins do not have a tax, and tax are used by the government to make that country a good one, without tax, what will be used to spend and make that country a good one?
What do you think?
I sincerely do not believe that bitcoin or any of the current crop of digital assets will ever become legal tender.
This may prove to be false but, I don't see it happening any time soon.
We have seen how gentle and gingerly the central banks conduct themselves when adjusting interest rates... when making decisions to pull certain denominations of their nations currency out of supply and so on.
It is a very delicate area, and let's all be certain - there is nothing 'delicate' about the digital asset market.
You have to understand that the majority of the population of a specific country does not hold and use their national currency because they 'choose to.'
They use their national currency because it is, usually, the only way they can pay off their bills, their debts and taxes.
So stability is 'the' most important factor in the realm of a national currency.
Because of this, it is a fragile and brittle area that must be handled with the lightest possible touch.
On the contrary, most of the participants in the digital asset world are 'voluntary' participants who accept and, more importantly, 'expect' a certain amount of risk and turbulence.
There is a higher threshold for pain, and therefore there is a higher resistance to instability.
If someone punches you in the face and you didn't see it coming, you're going down. No doubt about it.
But, if you expected to be punched in the face - you are more likely to brace yourself and establish some form of impact absorption to prevent yourself from going down.
Between November 25th 2013, and January 12th 2015 Bitcoin shed 87% of it's value.
A huge punch in the face. But, not only have we recovered - we have surged passed all previous highs.
However....
....if this had happened to the Dollar or any national currency of the same stature - mass turmoil will have erupted at a scale so epic, that our way of life as we know it will have been severely compromised in the most gruesome of ways.
Think Weimar Germany, or the hyperinflation that occurred in Russia in the early 1990's.
Today, digital assets are still in the earliest stages of formation. Digital assets are still brutish, rough and untamed - but growing and advancing at a rapid pace.
National currencies and the structures that surround them are more complex, more fine tuned and better suited to perform the role of legal tender
