Nothing is certain in the more distant future, but in the near future, it is unlikely to happen anytime soon. In the past few days, the bank's bankruptcy has also caused people to worry, panic, and lose confidence in the bank, but I see that people's reaction to the monetary system has not been too extreme. But if the government does not improve the banking system and there are more serious consequences, the ability of people to switch to other assets is also very likely.

There is a funny twist to what you just described though. If the price of Bitcoin goes through the roof the incentive to develop layer two technologies would also increase a lot. Now I doubt that that would happen in the first place because some of the people putting money into Bitcoin would not do it because they expect payments to become any easier for them because of that. Most of them would use it as a store of value and not unnecessarily increase the number of transactions, but just store it and keep it.

Now if some do it in hopes of being able to transact faster and cheaper, you are of course right in that that is not going to happen. But that's easy to learn actually if they do some research in advance. The block time alone doesn't allow for fast transactions as of yet. They would probably go with another crypto for that matter, at least with a little portion of what they want to put it into crypto.

Yes, interesting to discuss. Bitcoin king of all coins/tokens operates outside of the traditional financial system and is not subject to the same rules and controls as traditional currencies.

What the impact would be If the majority of the population suddenly sold all of their fiat currency and put it into cryptocurrencies like Bitcoin it would likely have a significant impact on the traditional financial system, where the demand for traditional currencies would decrease, which could lead to a decrease in their value.

Vice versa, a sudden influx of demand for cryptocurrencies can cause their value to increase rapidly, which can create a bubble that can explode at any moment.

In my opinion, that traditional financial systems could potentially see an impact in terms of their revenue stream. Banks, for example, derive most of their revenue from fees and interest charged on loans and other financial products. Well, If people switch to cryptocurrencies, it could lead to a decrease in demand for traditional financial products, which could impact the income streams of banks and other financial institutions.

While a sudden switch to a cryptocurrency like Bitcoin can have a significant impact on the traditional financial system, it is important to note that such a shift is unlikely to happen overnight. It is likely that cryptocurrency adoption and acceptance will continue to grow gradually over time, rather than all at once.

We all know that in some countries like Sweden many stores use cashless policy. They accept bank cards only. In some countries like Russia you can't sell anything if your cash register is not connected to Taxation Service via Internet (there are some exceptions, but in general it is so). So we are already on the doorstep of a world where lack of Internet makes everything stop. Maybe it is a very risky strategy, but it is implementing right now. So maybe there will be problems with accepting bitcoin in some spots at the moment, but with further development these problems can be solved.

You are looking at the current situation and expect it will last forever, but if we look at the situation with bank cards they conquered countries like Sweden just for several decades. Maybe your country is not ready to change all payments to bitcoin (and it is not necessary, I just talk about its possibility) at the moment, but it will develop and will be ready in probably a several decades. Why not? Technologies become cheaper and even not top countries can get their part of pie.

I'm not against cash, cash is much better than digital forms of fiat. But technologies are developing and not everything is based just on what we like or not. Bitcoin is a good alternative to digital fiat money.

Well, let me just say that like what these other people have pointed out, such a world wouldn't exist because in every corner of this planet there will always be some stubborn yosemite sam that's not gonna adopt bitcoin. But for the sake of discussion let's think about your proposition and suppose that every single person on the planet bought bitcoins with all their money, belongings, assets, and whatnots. First and foremost, the dollar's value will collapse because just like the episode from Rick and Morty where Rick fucked with the Galactic Fed's economy, you literally just zeroed the value of the currency in one go. Furthermore, bitcoin will become so scarce that its value will shoot upwards, but it wouldn't matter because there's no dollar to relate its value to anyway, coz it's already dead. What's going to happen is that with 8 billion people all using the same congested network that couldn't even handle the transaction weight of a couple hundred million/to a billion, the bitcoin network will collapse.

Basically by funneling all your dollars to a deflationary asset like bitcoin, you're going to fuck the two currencies up.

Fiat currency is the entire operation of money and some individuals are not educated on what crypto is all about, some traders tends to make it a little bit complex because they're always on the wrong side of the market. The majority would messed up the entire system, because the existence of dump projects will improved highly in numbers and it will gives way to steadily rapid liquidation of accounts and scams will enchance actively in the space. Cryptocurrency is not something we should put all our hopes in because it's risky and capable of draining our trading accounts if we don't fully understand how the crypto market operates.

First for you question, I believe that there will always be some form of inflation in the economy.

But, I do agree that the degree of inflation depends on a variety of factors such as market demand, supply, and other economic indicators.

For second part of you question, if a majority of the population were to suddenly sell all their fiat and invest it into cryptocurrency.

I do believe that there could be an impact on the traditional finance system. This could be a result of increased volatility in the market, as well as a shift in the balance of power from traditional banking systems to decentralized digital currencies.

Remember that, it's worth noting that the impact may not be entirely negative, as cryptocurrency has the potential to provide greater financial access and inclusion to a wider range of people.

Bitcoin is volatile at the moment but it will become more stable in the future. Future hasn't come yet, but old fiat system hasn't crashed yet as well. So it is not the thing we can expect right now so we are trying to predict if it is possible basing on trends we can see now. And I'd say that in the future I can see from now fiat system will stay for long, but decentralized currency alternative will slowly change a finance world and there will be a totally different financial system in the future. But I'm not sure how will it look like as I expect that many of nowadays tools will be gone and some new will be invented.