The biggest hidden risk to Bitcoin is Success.

[CTO114]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

[_act_]

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Did you not noticed anything when El Salvador made bitcoin a legal tender? More than 95% of bitcoin used for remittance were converted to dollar. Also as people pay in bitcoin, most merchants were converting it to dollar immediately. You should know what people can use bitcoin to do which is holding it as a form of investment. Bitcoin can be used for P2P and other things it is created for, but it can not replace fiat.

[Mr.leeemzy]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

The risk of Bitcoin being a failure is the main risk and it is also the risk that most people are scared of because the political tolerance you are saying about will not just happened like that, there must be a warning or deadline that the government will impose if there is any action that they want to take pertaining to Bitcoin the government cannot just take action immediately so if that happens with a time frame being giving one has the opportunity to sell his or her own before it happens.

[Exitoral]

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoin can be used for P2P and other things it is created for, but it can not replace fiat.

Don't be certain it might actually replace fiat. The rate at which people are going, it might replace fiat. Let's put it like this. Let's say everyone decides to put their goods in Bitcoin because for sure, one day Bitcoin will but have too much of volatility like it is now. I think when all Bitcoin has been mined, we might experience less volatility like we do see now.

Back to what I was pointing out, the government then notices this and decided to crack down on people using Bitcoin. At the end of the day, we all know that Bitcoin can't be controlled by the government. What I do think it that the next batch of hardware wallet will be traceable. And that will pose a threat the hardware way of storing Bitcoin. Except we will have an anonymous person designing the hardware wallet without a trace and selling it such in a way it begins to look we dealing drugs or cocaine. Lol. What I am saying is that Bitcoin can and could replace fiat at the end of the day.

[_act_]

Don't be certain it might actually replace fiat. The rate at which people are going, it might replace fiat. Let's put it like this. Let's say everyone decides to put their goods in Bitcoin because for sure, one day Bitcoin will but have too much of volatility like it is now. I think when all Bitcoin has been mined, we might experience less volatility like we do see now.

Anyone that says bitcoin will replace fiat does not know what he is saying because with how government are, it is clear that bitcoin can not replace fiat. Also with the simple bitcoin legal tender in El Salvador before, it is another prove that bitcoin can not replace fiat. Another thing is that people prefer to spend fiat most, while prefer the invest in bitcoin most. These three reasons is enough to let anyone knows that bitcoin can not replace fiat. Bitcoin is an alternative not a replacement.

[Findingnemo]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

Bitcoin can't replace the banking system, let alone the number of transactions processed and other things, the important factor in an economy is debt and banks are offering them which is also the reason why the money is printed out of thing wir. With bitcoin now the individual got a choice, they don't have to hold on to their paper currency if they don't want they can just hold onto bitcoin and let the others decide for themselves.

[BIT-BENDER]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

Countries like those in the middleeast and others around the world are surviving without taxation or very minimal taxation. I think that many countries are depending solely on taxing even the poor citizens just to survive and sometimes some of this tax payers money are used to fund personal government interest and not really all about what benefits their citizens.
For me Bitcoin success could make government create other pathways to generate funds rather than enslave their citizens and have complete control on people's funds claiming it's best for them.

[Cryptomultiplier]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

Countries like those in the middleeast and others around the world are surviving without taxation or very minimal taxation. I think that many countries are depending solely on taxing even the poor citizens just to survive and sometimes some of this tax payers money are used to fund personal government interest and not really all about what benefits their citizens.
For me Bitcoin success could make government create other pathways to generate funds rather than enslave their citizens and have complete control on people's funds claiming it's best for them.

The governments that try to stop Bitcoin may end up having economic consequences on the global stage because it helps individuals store value and it can't be controlled because of its self soverignty characteristics.

Therefore, the success of Bitcoin is the adoption of Bitcoin on a grand scale which will help redefine the contrast between the state of government and the retail individual investors who has sole control over their Bitcoin asset and the government who opts for a Bitcoin reserve Bank as a reserve and promising asset with returns.

[Antidote47k]

My opinion is that it is likely to coexist side by side, I’ve watched how things have taken place over the years and I’ve become less convinced that government and bitcoin are on a collision course where one has to eliminate the other.
One thing that shouldn’t be overlooked is that institutions adapt much better than people expect, years back many were under the believe that government is going to simply ban bitcoin but instead we now see a mix of regulations, taxations, ETFs and others.
The system didn’t reject bitcoin it has find ways to absorb and participate in it which was not without obstacles if we are being realistic.
My guess is that the endgame looks less like a revolution and more like an uneasy coexistence. Bitcoin keeps growing, governments keep adapting, and both end up influencing each other far more than either side originally expected.

[Dr.Bitcoin_Strange]

Normally, investments comes with risk but when the asset you invested on becomes successful as you expect, you also become successful, Bitcoin has been in existence for more than a decade and as we can see, there's still a very high chance that Bitcoin has more highs to go, we definitely will get to $1m per Bitcoin some day and those who would be holding their coins till then will be millionaires, the risk is just that during bear market, price could drop below the price you bought it, while in a bull season, the price also increase, so the end game of investing in Bitcoin is profitability.

[Hamza2424]

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

Bitcoin is already successful enough, and they knew that before giving it the green light in their countries by testing it first in El Salvador. They gave it the green light because they know they can't stop people from using it, so they decided to adopt it and create rules that would force everyone to follow them. If someone breaks those rules, they will become an example for others not to disobey again.

So creating rules and adopting it to gain more control was their main agenda, just like they did back in 1913 when private clearing houses, Wall Street figures like J.P. Morgan, and thousands of independent local banks were controlling the flow of money. The government hated that, so the state partnered with the biggest Wall Street bankers to draft the Federal Reserve Act.

Basically, they are doing the same thing now, and those who can compare it with history could understand it better.

[boyptc]

A lot of persons tend to think that Bitcoin's risk is failure.

It applies to all investments and assets.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

It goes from there when inflation keeps on rising and these political turmoil leads it to that.

People will look for a hedge against inflation and there's no doubt that the best in that point is Bitcoin.

No politician will be able to stop it and those who don't like to get involved with the wealth that they have will hide through it.

[davis196]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

Debt-driven economies are already weakening without the help of Bitcoin. The "Inflation tax" would always be effective. I don't see any difficulties for the governments and central banks in controlling the capital flows. Most crypto exchanges and trading platforms require KYC. Isn't that a form of control?
How do you measure the success of Bitcoin? When would Bitcoin become truly "globally dominant"? When the market cap hits 10 trillion USD? What if this never happens? Will you consider Bitcoin to be a failure, if the market cap stays below 2 trillion USD? I think that Bitcoin is successful the way it is and we should NOT expect a mass global BTC adoption. Your local grocery shop won't be accepting BTC payments anytime soon.

[Aanuoluwatofunmi]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

There is nothing on this planet earth that does not contain risk in doing it, all we just need to avoid bitcoin rate is to know about it and be well informed on the necessary protocols and guides about the network, this goes a long way because bitcoin is all about privacy and the security measures taken in other to avoid losing our assets to scammers, one for us to enjoy every other opportunity that may comes with bitcoin adoption, we have to learn and identify the area of our specialization in its and this will make us to be profitable at the end for considering bitcoin investment.

[Somegory]

Bitcoin can replace Fiat if government seize to exists, now tell me how countries will survive without the government? The inflation that we are talking about is only affecting us the people, not those who can decide to turn the printer on.

Bitcoin is best use as a store of value than payment solutions, most merchants and online stores that accept Bitcoin as payment are immediately going to covert the accepted Bitcoin back to Fiat.

It's just an option, it doesn't need to replace anything, cross border payment for example is the only reason why I spend bitcoin for items, because it's easier to buy items from another country into mine without using master card, if this is no more I won't spend bitcoin anymore.

[TheUltraElite]

Fiat economy is not going to get replaced so easily. Fiat is ingrained into our systems and hence what can happen is hybrid economy with crypto being one means to pay and fiat being another. People will have the freedom to choose between paying with fiat or crypto.

Traditional banking system that include lending as a major part of the bank's earning is tough to be implemented on crypto, till then the lending and credit card systems will work on fiat economy only.

Maybe one day proper bank based lending through crypto will be actualized and then it will be interesting to see what banks to do still remain relevant.

[aoluain]

Don't be certain it might actually replace fiat. The rate at which people are going, it might replace fiat. Let's put it like this. Let's say everyone decides to put their goods in Bitcoin because for sure, one day Bitcoin will but have too much of volatility like it is now. I think when all Bitcoin has been mined, we might experience less volatility like we do see now.

Anyone that says bitcoin will replace fiat does not know what he is saying because with how government are, it is clear that bitcoin can not replace fiat. Also with the simple bitcoin legal tender in El Salvador before, it is another prove that bitcoin can not replace fiat. Another thing is that people prefer to spend fiat most, while prefer the invest in bitcoin most. These three reasons is enough to let anyone knows that bitcoin can not replace fiat. Bitcoin is an alternative not a replacement.

And not only do people prefer to spend FIAT, it is the most convenient, everyone can go anywhere,
anytime and spend FIAT to buy anything they can. Why: because the financial system is centered
around FIAT.

Everyone gets paid in FIAT, taxes are in FIAT, goods are priced in FIAT, if you sell something privately
you want FIAT because thats what buyers have to spend.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility

... and lose control over the financial system. Governments wont be able to control Bitcoin, wont be
able to impliment Quantitative Easing and simply print more. They are not going to let that happen.

Imagine governments relinquishing the FIAT system to be replaced or dominated by Bitcoin and a group
of global developers and node runners? not going to happen.

As it stands ATM everyone can avail of Bitcoin now and the FIAT system can do its thing.

[Agbe]

If the person is investing for a long term then he shall not be afraid because definitely he will not lost his investment. And as we have discussed years back. Big is not here to reduce inflation though that is how I look at because once bitcoin becomes the international currency and every country starts to use it, the business people will adapt to it and increase their products according to bitcoin. And for bitcoin to becomes a global currency will not be easy because the governments are using the printing and destroying of money to enrich themselves and steal funds.

[hd49728]

Fiat economy is not going to get replaced so easily. Fiat is ingrained into our systems and hence what can happen is hybrid economy with crypto being one means to pay and fiat being another. People will have the freedom to choose between paying with fiat or crypto.

Traditional banking system that include lending as a major part of the bank's earning is tough to be implemented on crypto, till then the lending and credit card systems will work on fiat economy only.

Maybe one day proper bank based lending through crypto will be actualized and then it will be interesting to see what banks to do still remain relevant.

Traditional banking system years ago disliked Bitcoin and they either considered Bitcoin as threat against their system or were fearful about legality of Bitcoin and possible adverse effects on their banks if they accept Bitcoin.

Recent years, even before Bitcoin Spot ETF approvals in January 2024 in the USA, the bank system became more friendly with Bitcoin and they had products for their bank users to use banks for things related to Bitcoin. The Bitcoin Spot ETF approvals in bulk in the USA two and a half of years ago only helped this Bitcoin adoption in bank system changed more rapidly.

They likely still don't like Bitcoin but they see there is no choice rather than provide products for their bank users as inside the bank system, banks compete with each other and when one bank accepts Bitcoin, has products for Bitcoin users, the other banks will have to join this trend after a snowball already kicked off.

[Zigabel]

A lot of persons tend to think that Bitcoin's risk is failure.

The deeper risk could actually be success.

If Bitcoin becomes globally dominant; governments stand to lose monetary flexibility, debt-driven economies begin to weaken, inflation taxation becomes less effective and controlling capital becomes harder.

States may tolerate Bitcoin while it is supposedly still growing in different regions. But widespread adopt could fundamentally challenge how modern governments finance themselves.

Bitcoins ultimate stress test may not be technology. It may be political tolerance!

You have made a very good strong point which is very valid as political concerns has influenced Bitcoin in a way but you also need to understand that Bitcoin isn't here to replace Fiat, it is not here to take over the position of how the modern government does their finance but to be a tool for investment, a modern finance intermediary for cross border payments and also as a currency where it gets the chance to, there are also other functionalities that Bitcoin can always serve in, mostly for utility and so the battle here is and was never to replace Fiat and so there will be no need for any of such fears to be nursed, it is mostly for the individual ownership when it matters, that's why it is decentralized.

There are alternative global payment gateways and instruments that has been generally accepted and till date, they are yet to replace fiat or obstruct the global monitory and financing styles, they only serve as better alternatives where fiat could possibly have limitations and that is similar thing you will most likely get with Bitcoin, one of such alternatives is GOLD and other precious metals.