If Bitcoin was the currency of a country

[Hazink]

That would probably become the scenario then. That’s the reason maybe why until now bitcoin has not become a global currency, or a country’s currency except for El Salvador. People don’t see it as an ideal currency but more on a profitable investment. Volatility is the key, and as long as bitcoin remains volatile, people won’t stop seeing it as an asset or ideal investment.

Even in El Salvador, Bitcoin is not their official currency; they only make it a legal tender but do not abolish their local currency. Even the Central African Republic, which made Bitcoin a legal tender after El Salvador and also uses it as an alternative currency, still uses their local currency, the CFA franc, because they understand the implications of using only Bitcoin as a country currency.

[taufik123]

Even in El Salvador, Bitcoin is not their official currency; they only make it a legal tender but do not abolish their local currency. Even the Central African Republic, which made Bitcoin a legal tender after El Salvador and also uses it as an alternative currency, still uses their local currency, the CFA franc, because they understand the implications of using only Bitcoin as a country currency.

Bitcoin is just a more revolutionary payment option, so it won't eliminate traditional payments that are a country's identity.
El Salvador was the first country to start using Bitcoin as an alternative currency and El Salvador is also a country that makes a lot of profit because they consistently buy and hold Bitcoin.

If Bitcoin were to be made the main currency of a country, it would not be the desired currency because it would remove the country's identity.
Becoming a companion currency. The main currency is good enough, because Bitcoin can be implemented in a country's financial program by following the country's rules.

[SquirrelJulietGarden]

Bitcoin is just a more revolutionary payment option, so it won't eliminate traditional payments that are a country's identity.

Bitcoin was not designed with this mission and in emails with sirius, Satoshi Nakamoto said that he did not set too ambitious mission like this one for Bitcoin. The founder perhaps knew that it will put Bitcoin in danger because if governments see it as a threat against their traditional systems and fiat currencies, especially when Bitcoin was new and weak, they will eliminate it.

El Salvador was the first country to start using Bitcoin as an alternative currency and El Salvador is also a country that makes a lot of profit because they consistently buy and hold Bitcoin.

They are one of Bitcoin investors and with very high percent of Profitable days by holding Bitcoin, they have low chance of getting loss by investing in a long term.
https://www.bitcoinmagazinepro.com/charts/bitcoin-profitable-days/

[zeuner]

☞If Bitcoin was the currency of a country then what will happen?☜

Cryptocurrency is known as the fastest transaction medium for people around the world. Bitcoin is most commonly known and used token in cryptocurrency. Suppose a country began to use Bitcoin instead of their currency. Then, what will happen?

The price of Bitcoin is unstable. Its price may increase or decrease. If a country accepts Bitcoin as their currency, then there will be an economic revolution in that country.

Bitcoin will be operated without the control of the central bank or government of that country. It is capable of preventing inflation. Because it is not possible to print any additional bitcoin. For this, the people of that country can do their transaction easily, transparently & faster and will have the potential to reduce corruption rates. However, when all transactions are completely dependent on online, it will be mandatory for all of the country to gain skills in this regard. 

Finally, if Bitcoin is the currency of a country, it will start a new economic age of that country. This will improve the economy of that country and some damage. So these positive and negative aspects of that country should be noticed equally.

When a country completely sacrifices control over money supply, there might be parts of the services commonly expected from a government that would be hard to provide.

It might be interesting to investigate that effect on countries that already partially sacrifice that control.

[Faisal2202]

Finally, if Bitcoin is the currency of a country, it will start a new economic age of that country. This will improve the economy of that country and some damage. So these positive and negative aspects of that country should be noticed equally.

If BTC have fixed supply it does not mean it will prevent inflation, as it is a deflationary token, and with limited supply and more demand (not in just one country), this nature of BTC will make people hold it rather then spend it, and this is not good for the economy of the country. They won't spend it like they spend their stable currency.

Speaking of economy, imports and exports plays an important role, what if the country you are trading with does not accept BTC, what if they want some stable currency? I know most of the countries don't even trade in their local currencies but US dollar but still the question is the same.

Due to it's scalability issues and the big one is tx fee, I don't think it is anywhere near to be adopted by a country as its sole currency. Even El Salvador has not made BTC their sole currency.

[GeorgeJohn]

Actually bitcoin was not been designed to be a currency of a particular country but a global currency, so what happened is that a particular country cannot make bitcoin as a particular currency to I believe that what you said is just assumption because bitcoin cannot become a particular country currency if they have not legalize a Bitcoin, some countries may legalize Bitcoin as a legal tender in their country so if they do that that means bitcoin has become a legal tender and then directly they are currency partially but that will not make them not to have their own traditional currency which has been in existence before Bitcoin so there is no way a country can you use a Bitcoin as their permanent currency

[The Cryptovator]

I feel Bitcoin won't be only a currency for a country. Because governments don't want to lose the control from their native currency. Bitcoin is uncomfortable; cryptocurrency means no one would have control over that. On the other hand, transaction fees are another prevention. We know a large number of the population don't know about Bitcoin and how it does work. Those who are illiterate can't handle Bitcoin anyway. So we must have physical notes for our daily life. Which isn't possible; we can't imagine what will happen if Bitcoin becomes a currency for a country.

[red4slash]

Cryptocurrency is known as the fastest transaction medium for people around the world. Bitcoin is most commonly known and used token in cryptocurrency. Suppose a country began to use Bitcoin instead of their currency. Then, what will happen?

I think forever something like this will never happen because for now even though bitcoin is one of the best things created because it can indeed be a good investment asset or as an alternative payment in some places or in some recognized countries but ultimately the purpose of bitcoin is not to replace fiat as a means of payment.

Forever bitcoin will be an alternative not as a core payment because in the end fiat will still be in full control in this case when talking about means of payment so there will be no way bitcoin can fully replace fiat because that is not the purpose of bitcoin itself.

I am personally still quite comfortable with what is the function of bitcoin now does not need to be a substitute for fiat because things like this are risky but it is enough to be an alternative for payment if it is still possible even though for me personally I still like to make this an investment asset.

[Renampun]

...
Bitcoin will be operated without the control of the central bank or government of that country. It is capable of preventing inflation. Because it is not possible to print any additional bitcoin. For this, the people of that country can do their transaction easily, transparently & faster and will have the potential to reduce corruption rates. However, when all transactions are completely dependent on online, it will be mandatory for all of the country to gain skills in this regard. 

Finally, if Bitcoin is the currency of a country, it will start a new economic age of that country. This will improve the economy of that country and some damage. So these positive and negative aspects of that country should be noticed equally.

This is the reason why bitcoin is considered the money of the future, because you can use bitcoin as an investment asset or as a currency, El Salvador has already made bitcoin an alternative currency in their country, but because the value of bitcoin is fluctuating, even the smallest unit of bitcoin (satoshi) has experienced drastic increases and decreases in value. It's not that I'm skeptical of bitcoin, but it takes a lot of consideration for a country to make bitcoin their alternative currency, it's not as easy as turning the palm of your hand because usually a country's currency must have a stable value.

[Redley555]

If bitcoin was the currency of a country is will likely lead to unstableness in the economy, it will be hard for government to control it since it is quiet circulated

And we need to consider the taxation involvement too by the government

[Marvell1]

If bitcoin was the currency of a country is will likely lead to unstableness in the economy, it will be hard for government to control it since it is quiet circulated

Not only is it unstable, if BTC is the sole currency of a country, it will cause that country's economy to collapse faster. Because the government cannot control the people, there will be a risk of money laundering, fraud, tax evasion...while banks will lose control of currency and cannot regulate to balance the economy...That country's economy would collapse in the blink of an eye.

But if it is adopted as an alternative currency like what El Salvador is doing, it would help ease the burden on the national monetary system. But with price volatility and additional transaction fees, this also makes people hesitant to use it for everyday payment purposes.


Overall, using bitcoin as a national currency has more disadvantages than advantages for the economy, IMO.

[Mahiyammahi]

I feel Bitcoin won't be only a currency for a country. Because governments don't want to lose the control from their native currency. Bitcoin is uncomfortable; cryptocurrency means no one would have control over that. On the other hand, transaction fees are another prevention. We know a large number of the population don't know about Bitcoin and how it does work. Those who are illiterate can't handle Bitcoin anyway. So we must have physical notes for our daily life. Which isn't possible; we can't imagine what will happen if Bitcoin becomes a currency for a country.

Bitcoin is designed for global use, not just for one country. Some countries, like El Salvador, have recognized it as a legal tender, they didn't stop using their traditional currencies they’ve just added Bitcoin as an additional one to use. If a country were to use Bitcoin exclusively, they would lose control over inflation, interest rates, and the money supply. Additionally, Bitcoin is still slow for transaction (about 7 transactions per second) and volatile. Many places still don’t have reliable internet connections. It will be disadvantage for trade with bitcoin. So untill govt create the right infrastructure and laws, Bitcoin will remain an asset or a substitute, not a fully-fledged currency. I think It hasn’t reached that point yet.

[leonair]

It will be chaotic especially on businesses since its value keeps changing. Businesses need to adjust price regularly including with goods and other services.

Bitcoin is good for investment purposes not as currency that use for regular transactions due to its price volatility.

Every country stores its reserves in a stable currency, which is the dollar, and in addition to it, a strong physical asset, gold. These always maintain the balance of a country's economy. But Bitcoin is a very volatile currency, so keeping it as a country's reserve is very risky. Because no one can control the price of Bitcoin properly and since it is completely decentralized, no one can control it in any way. So if Bitcoin is stored as a country's reserve, the balance of the country's economy will not be right. However, major transactions can certainly be handled through Bitcoin. El Salvador has started using Bitcoin as their local currency. Now, due to the increase in the price of Bitcoin, their economy may have improved a lot, but due to the sudden fall in the price of Bitcoin, they may face a lot.

[Z_MBFM]

It will be chaotic especially on businesses since its value keeps changing. Businesses need to adjust price regularly including with goods and other services.

Bitcoin is good for investment purposes not as currency that use for regular transactions due to its price volatility.

Every country stores its reserves in a stable currency, which is the dollar, and in addition to it, a strong physical asset, gold. These always maintain the balance of a country's economy. But Bitcoin is a very volatile currency, so keeping it as a country's reserve is very risky. Because no one can control the price of Bitcoin properly and since it is completely decentralized, no one can control it in any way. So if Bitcoin is stored as a country's reserve, the balance of the country's economy will not be right. However, major transactions can certainly be handled through Bitcoin. El Salvador has started using Bitcoin as their local currency. Now, due to the increase in the price of Bitcoin, their economy may have improved a lot, but due to the sudden fall in the price of Bitcoin, they may face a lot.

El Salvador is using Bitcoin very deeply and because of this they are not facing any problems so far because the price of Bitcoin is constantly increasing. The government of El Salvador has decided after considering all aspects that they will use Bitcoin in this way. And they are very serious about the future of Bitcoin. They have certainly observed and researched in depth how much the price of Bitcoin can increase in the future and how much its demand can increase in the market. And if they can deal with the current problems, then in the future El Salvador will be the most economically powerful country. Because the Bitcoin of the future will be very expensive, it may be several million dollars.

[Samlucky O]

There are many reasons why Bitcoin can not be used as a currency, and below are the reason

1. Bitcoin is decentralized which means it's transaction is not controlled by anyone including government. So using Bitcoin as a currency will result to financial problem expecialy when transaction is don wrongly and lost forever, such mistake can not be reversed or no body to contact for your misfortune. Even the government and bank can not help such person.

2. Bitcoin can not be used as a currency because the transaction fee is high which means a transaction of $1 dollar may not work except you want to pay higher fee for smaller amount. And Even as that 1 dollar is below the minimum withdrawal limit.

3. Bitcoin can not be used as currency because it is not like fiat that has physical cash. That means every transaction must be on the Blockchain and no physical cash payment. If Bitcoin is used as fiat it must need to be printed as paper money because not everyone is educated enough to run transaction on Bitcoin.

[Asiska02]

☞If Bitcoin was the currency of a country then what will happen?☜

Cryptocurrency is known as the fastest transaction medium for people around the world. Bitcoin is most commonly known and used token in cryptocurrency. Suppose a country began to use Bitcoin instead of their currency. Then, what will happen?

El Salvador has accepted bitcoin for quite some time now to be used as a legal tender. Checking from there, which economy revolution can you corn out from that country, that is how far you can say bitcoin can help in the economy of a country, then compare it with if bigger countries adopts it and takes on the same part with them, it’ll be more openly explanatory to what the outcome of it will be to them and to their economy most importantly. Bitcoin has lots of advantages but when compared to its disadvantages when it is used as currency, you’ll see that it’s not something feasible.

Bitcoin will be operated without the control of the central bank or government of that country. It is capable of preventing inflation. Because it is not possible to print any additional bitcoin. For this, the people of that country can do their transaction easily, transparently & faster and will have the potential to reduce corruption rates. However, when all transactions are completely dependent on online, it will be mandatory for all of the country to gain skills in this regard. 

You’ve just mentioned one of the disadvantages of using bitcoin as a currency in the country. Many people will not be able to use it because of their lack of knowledge in bitcoin or no literacy generally of the internet. You may have mentioned other good points that makes it a suitable option for use but when it can’t take everyone along, it becomes complex and not everyone will buy the idea to use it as they use the fiat. Remember that this currency was never invented to replace the fiat currency but only to serve as an alternative to it.

[dumbymamby]

That is what the government don't want to do. They are not ready with the fluctuation of Bitcoin price. They can not control Bitcoin.  I don't know for sure what they will do but they will not approve that. Bitcoin will not be used to replace fiat but work together with fiat will be good. So that is what Bitcoin will do in the future when Bitcoin grow bigger. But if my government use Bitcoin as currency, I will still use Bitcoin as the investment because I don't want to spend my Bitcoin to pay the transaction. I prefer to use fiat for the transaction payment and Bitcoin for the investment. Maybe that will what the government will choose so they can still control their country using fiat.

[CageMabok]

If bitcoin was the currency of a country is will likely lead to unstableness in the economy, it will be hard for government to control it since it is quiet circulated

That is the uniqueness of Bitcoin because it cannot be controlled by any government in the world so it is very different from paper money or fiat which can be printed at will by the government when it wants to complete something quite sacred. I do not understand your way of thinking about Bitcoin which you say is calm in its circulation, because at this time Bitcoin has become a fairly powerful solution in fighting inflation and can also be relied on as an investment asset that is quite useful for everyone's future.

And we need to consider the taxation involvement too by the government

Why consider the involvement of taxes on everything in this world because if all sectors have to deal with the tax authorities, then ordinary people will also have difficulty fulfilling this because excessive tax costs can also be blackmail against the people. So think more logically so that you do not equate Bitcoin with fiat money that can still run in a corrupt system, while Bitcoin is very transparent in terms of its own transactions.

[Stablexcoin]

That is what the government don't want to do. They are not ready with the fluctuation of Bitcoin price. They can not control Bitcoin.  I don't know for sure what they will do but they will not approve that. Bitcoin will not be used to replace fiat but work together with fiat will be good. So that is what Bitcoin will do in the future when Bitcoin grow bigger. But if my government use Bitcoin as currency, I will still use Bitcoin as the investment because I don't want to spend my Bitcoin to pay the transaction. I prefer to use fiat for the transaction payment and Bitcoin for the investment. Maybe that will what the government will choose so they can still control their country using fiat.

Any plans to take Bitcoin as a main currency should understand that volatility is a risk factor to keep in mind, no country will try taking Bitcoin as its main currency, for some reasons government has no control over Bitcoin, how do they regulate its value to meet the economy. Fiat has good importance, can't be against Fiat because it plays a crucial role in a country, making everyday transactions simpler. I agree with you when you say, Bitcoin should go in as an investment, not an actual currency (can serve alternatively), and adding to its value can be used for some large payments.

[Ojima-ojo]

Let me refer you to go and read about El Salvador bitcoin adoption and progress since the start of around 2021 this point mark a significant shift in the bitcoin/El Salvador digital development and the adoption opens up ways to develop the country digital economy.


So if you want to see the effects of bitcoin adoption on a Nation, El Salvador should be at the center of such discussion and if you make research you will fine alot of reasons and advantages, and disadvantages of bitcoin as a national currency.