How will be the world with payment medium as only bitcoin ?

[d5000]

The change will clearly impact the use of banks, which will begin to be abandoned by society, and people will favor Bitcoin due to its ease of use.

While I think banks will be affected, I don't think they will be "abandoned".

Banks' core business is not to provide accounts for people. There basically are two functions: to provide loans (mostly to businesses but also to retailers) and to guide people's investments, for example offering investment funds, but also more complex derivatives. The Bitcoin software can't provide this. Not even Ethereum, all concepts based on really decentralized "loans" have failed -- DeFi doesn't count because you always have to provide crypto collateral, so most loan use cases can't be covered by DeFi.

Banks would simply adopt Bitcoin. They can either manage Bitcoin loans itself, or pegged coins (which would be closer to the current banking model) they can create out of thin air, to create cheaper credit. They can also create stablecoins for the transition period. Such as Societé Generale has done in France recently. And Tether is more close each year to the business model of a bank, having invested even in Argentine milk companies .

Anyway I think the importance of banks will decline, perhaps by half or so.

[SeriouslyGiveaway]

While I think banks will be affected, I don't think they will be "abandoned".

Banks' core business is not to provide accounts for people.

Banks would simply adopt Bitcoin.

Anyway I think the importance of banks will decline, perhaps by half or so.

Banks certainly won't abandon and they will actually adapt to any changes in their nations, the world and the financial system. Like JP Morgan Chase bank actually adapted to provide many products to their bank users in the era of blockchain, Bitcoin and alternate cryptocurrencies.

Even in 2023, JP Morgan Chase already adapted to this trend, and since Bitcoin Spot ETF approvals in January 2024 in the USA, and massive participation of Wall Street companies since 2024, not only this bank but other banks already adapted well.

Crypto adoption by institutions at page 45.
https://s3.amazonaws.com/static.bitwiseinvestments.com/Research/Bitwise-Crypto-Market-Review-Q4-2023.pdf

[Dreadboost]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

Many will find it difficult to cope with the new system if the traditional system ceases to exist and Bitcoin takes over as a payment medium, which will create concern among older ones who will not be able to use it. Old people need a seamless and easy-to-use method of payment they are bound to make mistakes and be scammed. Certainly, Bitcoin is somewhat complex for elderly people. It has been proven. If the payment system moves to Bitcoin only, it will be in 100 years, not in the next few decades.

[CryptoYar]

[...]

Although approval of Spot ETFs in 2024 was big boost but I think transformation is in how banks are thinking about Settlement Finality. Their adoption of blockchain for their ledger and remittances, is akin to replacing their aging systems with same technology that was intended to replace them.

I think we should not be fooled by this institutional buy in as full hearted conversion to decentralised principles. This is because banks are responding to huge fee opportunities in BTC ecosystem and custody. Risk here is that as Wall St. proportion of total supply increases, we could also end up with more "paper Bitcoin" or derivatives that would dilute value of the underlying coins. Institutional adoption means greater liquidity and legitimacy, but community also needs to be aware of importance of remembering mantra of Not your keys, not your coins for retail users.

[Luzin]

I did not expect this far before there was an improvement in network congestion. I don't like it because the fees will become more expensive and transactions will be slow. I even still feel quite comfortable with this condition. I imagine how chaotic it would be if Bitcoin became a currency with a very slow network. This condition will only ruin transactions and worsen trust in Bitcoin. Indeed, this is beyond Satoshi's dream, but the Bitcoin network will not be able to serve global transactions simultaneously. Just remember when the BTC network is used to carry the ORDI token, the network is slow and transaction fees are expensive. I also agree that friends from other countries with poor human resources may find it difficult to adopt this. In addition, it requires a considerable amount of money for the necessary facilities. IMO

[bitLeap]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

I imagined it by considering various things and what happens is that the world financial system is not controlled. At first glance it sounds good because there is only 1 means of payment but with the limited supply of bitcoin people tend to choose to hold rather than spend, right? and that makes the economic turnover slow down.
If you imagine a supply of 21 million (including lost recovery seeds, dead or unrecoverable owners) and the world's human population continues to grow depending on the amount in circulation, what will happen?
Bitcoin was born from history when the financial system was in chaos, now that conditions occur in the era of bitcoin being the only payment, it is not impossible that there will be new, more flexible instruments as a form of resistance.

[nullama]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

It's hard to know for sure, but the governments won't have any way to change the interest rates. And that's powerful.

Most countries now assume that they can control they fiat, and that's a massive thing. Many countries didn't want to join the Euro for example, so that they can continue controlling their own fiat, like the British Pound, Swedish Krona, etc.

[KiaKia]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

It's will be a payment option, Bitcoin is not going to take over anything like fiat, it will only be available for people who feel like using Bitcoin to make payment.

There will also be some people who won't want to use their Bitcoin to make payment, because they believe that it's a waste to do such thing, bitcoin is a store of value to many people than a means off making payment.

The choice won't be the same but Fiat currency and bitcoin will coexist with eachother, available for people who prefer them both, one doesn't have to get cancelled for the other.

[Rabata]

Bitcoin will be used as a payment medium, but it will not be used as the only payment medium. Just as the use of conventional fiat currency decreases, it will not disappear, just as the use of Bitcoin will increase, but it will not be used completely as a single currency. Of course, the currency of that country will also be used with Bitcoin. It is certain that the use of Bitcoin will increase manifold. Bitcoin will be used for large transactions. Moreover, governments will not be interested in using Bitcoin directly.

Currently, third world governments, are under the pressure of excessive debt, they get the opportunity to repay that debt by printing money through central banks, but when Bitcoin becomes the only means of transaction, they will be deprived of that opportunity. Therefore, there is no opportunity to think about Bitcoin in the long term. Bitcoin will be widely accepted as a store of value. It will greatly interest investors in protecting assets from inflation. When people see the long-term returns of Bitcoin, they will be more interested in holding it in addition to transect.

[sfjordhalvson]

Bitcoin will be used as a payment medium, but it will not be used as the only payment medium. Just as the use of conventional fiat currency decreases, it will not disappear, just as the use of Bitcoin will increase, but it will not be used completely as a single currency. Of course, the currency of that country will also be used with Bitcoin. It is certain that the use of Bitcoin will increase manifold. Bitcoin will be used for large transactions. Moreover, governments will not be interested in using Bitcoin directly.

Currently, third world governments, are under the pressure of excessive debt, they get the opportunity to repay that debt by printing money through central banks, but when Bitcoin becomes the only means of transaction, they will be deprived of that opportunity. Therefore, there is no opportunity to think about Bitcoin in the long term. Bitcoin will be widely accepted as a store of value. It will greatly interest investors in protecting assets from inflation. When people see the long-term returns of Bitcoin, they will be more interested in holding it in addition to transect.

Bitcoin can grow as payment, but it won't be the only one, fiat will still exist because governments need control over their economy. BTC is more likely used for big transactions or as store value, not everyday payments for everything and yeah, many people will hold it more for long term and protection against inflation, not just spend it.

[barbara44]

"How will be the world with payment medium as only bitcoin  ?" - unbalanced (as if that were the case now ), since the majority of ишecщшты is already distributed among a not very large circle of people.

Some things in this world will always be unbalanced, and wealth is one of those things. Wealth will never be evenly distributed, and there will always be different classes with different net worth based on what they do and how much they make. So it's true that Bitcoin is not going to change any of these things that already exist in society, because even when Bitcoin is being used a medium of payment, people will still make the same amount of money that they work for; a labourer will make the same amount just in Bitcoin but it will still have the same purchasing power, unless the price of Bitcoin goes up and then he has more value for it, but that's not what we are discussing here, right?

I also wonder why OP thinks that the US will be the first one to enforce the use of Bitcoin as a medium of payment, because I don't see any reason for them to reject their own currency and start using Bitcoin when they clearly understand that they won't have any power by using Bitcoin since they won't be able to control the money or the people using the money. With fiat currencies, they are capable to do anything they want, but with Bitcoin, they won't even be able to stop a transaction.

[Faisal2202]

Can you explain about why tourism will increase in such countries ?

You can understand it better after knowing how it changes the economy of El Salvador, because tourists there have received many privileges when using BTC. Only two countries have BTC as legal tender, according to Oshosondy, and that's why people from other countries love to visit them. I have mostly heard about El Salvador, so let's talk about it.

Tourists will be given a BTC passport, which they can use to claim some discounts. There are zero taxes on holding BTC, so zero tax gains. You can get the citizenship of El Salvador for around $1 million in BTC.

In short, BTC-friendly countries attract a group of travelers, it is like this country has some of the best places for tourists to visit, and travelers are already visiting there but with BTC they get more privileges, they prefer spending in BTC directly because they want to avoid currency exchange, reduce fees, and want to use BTC in real-life situations without any fear.

[YOSHIE]

Suppose there is a situation where the whole world starts using bitcoin as payment medium.

Do you want the role of the Central Bank to be eliminated, if that happens the role of the central bank to print money will disappear, that is not a solution accepted by all countries, if Bitcoin is made as you say, of course conventional banks will close all over the world, they will no longer be able todominant deposit of funds, that is also not a solution and a good idea, if that happens the Bank will be eliminated, that is definitely not possible, for now Bitcoin is still dependent on the Bank, I mean Bitcoin is measured by fiat currency.

Not to mention that the Bitcoin supply is limited to only 21 million, what about interest rates, credit, loans as well as traditional market mechanisms, not to mention internet access problems, I have experienced the internet going down for a few days, people are confused, not everyone in this world can operate a smartphone, for example grandmothers whose eyes are nearsighted, children in elementary school, I think what you say will not happen even in the long term.

[bangjoe]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

It is very possible that in the future the things you mentioned will happen, but there needs to be infrastructure and also qualified human resources first, I am very confident that transactions in the digital world and even in the real world will use the blockchain network, whether it uses stablecoin, bitcoin or others, but at this time it still cannot be said to be safe because of the quantum threat in front of the eyes, many are still hesitant if it is implemented because of that threat, if we already get protection against many attacks that are now feared, implementing a mechanism is very possible because it has better effectiveness and efficiency.

[notocactus]

Do you want the role of the Central Bank to be eliminated, if that happens the role of the central bank to print money will disappear, that is not a solution accepted by all countries, if Bitcoin is made as you say, of course conventional banks will close all over the world, they will no longer be able todominant deposit of funds, that is also not a solution and a good idea, if that happens the Bank will be eliminated, that is definitely not possible, for now Bitcoin is still dependent on the Bank, I mean Bitcoin is measured by fiat currency.

Governments don't want it so they won't allow it and central banks have to do what governments want.

In some emails from Satoshi Nakamoto to Sirius - an ex-admin of this forum - there are several discussions about bank system and Bitcoin.
https://mmalmi.github.io/satoshi/

I quote this one part but there are more discussion about bank system and Bitcoin there.

The root problem with conventional currency is all the trust that's required to make it work.  The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.  Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.  We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.

[ZAINmalik75]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

Did you literally say, first, it will be enforced in the USA? Your name is really cool, according to your date of registration, I just noticed. Anyway, why do you think they will be the first to enforce this? Do you forget they want their dollar to be accepted and used worldwide in all kinds of transactions, and they will never enforce this in the USA. Maybe in some BTC-friendly states, they would enforce this but just to pretend they care, so the rest of the world starts doing it too, because most of the other countries follow whatever the US is doing or their policymakers are asking them to do.

Now coming back to your main question, the world would be the same as it is now except for a few things. More people would be joining this industry, owning more BTC so they could use them for buying and selling. This will increase the demand, and we might see the price of BTC hitting $1 million easily if this happens. But there comes the network congestion issue too, because it is not possible for the BTC blockchain to manage all the transactions because it failed to manage the weight of BRC tokens, which was way too lower than the US dollar's usage, so thinking that it could replace the world currency and will be used as a payment method in every single country is a waste of time and energy.

[Z-tight]

I did not expect this far before there was an improvement in network congestion. I don't like it because the fees will become more expensive and transactions will be slow. I even still feel quite comfortable with this condition. I imagine how chaotic it would be if Bitcoin became a currency with a very slow network.

BTC blocks are mined 10 minutes on average, that doesn't change, the networks difficulty adjustment ensures that rule stays the same. So even when there is congestion in the network, tx's do not get any slower, instead fees rise as a result of competition for block space. In such situations, in order to get your tx in a block, you'd have to pay a high fee. If you use a low fee, others paying higher than you get priority and so you may have to wait for long time, doesn't mean the network got any slower.

[OcTradism]

BTC blocks are mined 10 minutes on average, that doesn't change, the networks difficulty adjustment ensures that rule stays the same. So even when there is congestion in the network, tx's do not get any slower, instead fees rise as a result of competition for block space. In such situations, in order to get your tx in a block, you'd have to pay a high fee. If you use a low fee, others paying higher than you get priority and so you may have to wait for long time, doesn't mean the network got any slower.

You are right about Bitcoin block time in average as 10 minute, network difficulty retarget and fee competition for getting a transaction on tip of mempool for confirmation or quick confirmation but you are wrong about tx's do not get any slower.

There are new Bitcoin blocks found with time, and with each block there will be transactions confirmed with each block but people as Bitcoin users sometimes can afford high fee rate and fee to get quick confirmation. However, sometimes the mempools are too congested and fee rates on tip of mempools are simply too high so that transaction fee becomes too expensive and people have to give up, just wait a long time for confirmation.

[snowpega]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

No doubt the chances are very low to happen this in the near future, but surely we are talking about conditions like this, and what will happen if such adoption of bitcoin started around different edges of the globe. And if this happens, this will be a very positive change in the bitcoin market and become the reason for bitcoin to get more wider recognition around different edges of the globe. And this will also become another reason for a heavy market capitalization to rush into the bitcoin market, and this will surely appreciate in price to another level of height.

Its adoption, although has already begun with a good number, and more is needed in my point of view. As the world is changing and evolving very fast so there are very heigher chances that the new generation will turn towards the digital usage assets more rather than relay on old money system and banking systems. Well, this is my perosnal point of view. I woul love to know you point of view on this, so what do you think about it?

[Powerjumboo]

Suppose there is a situation where the whole world starts using bitcoin as payment medium. I know it will not happen anytime soon may be first enforced in  USA. What is the probability of this and what changes it will make in the society ?

Do you think the United States will consider Bitcoin as the primary means of payment instead of their dollar? I think the United States will not allow anything to go up in place of their dollar as long as it exists. But if Bitcoin is considered the primary means of payment around the world, then Bitcoin's position will be so beautiful.

But we will have to face more problems, like we will have to use Bitcoin to buy small things, which will be quite a hassle. But when we use our local currency, we don't have to worry about paying small amounts. So what is being imagined will never be possible, because Bitcoin will not be accepted as a major means of payment.