The future of Bitcoin in the field of finance seems promising, as even huge financial monsters like BlackRock have already introduced Bitcoin ETFs, which allow traditional investors to reach the crypto market with much more ease. This movement here suggests that Bitcoin may eventually be able to coexist with traditional assets by adding new options for financial portfolios without directly removing the banks. This would mean that in such a direction, the potential of blockchain technology to support even faster and more inclusive financial products could also allow Bitcoin to allow greater access to finance than traditional banking has yet achieved.

Yet, the most significant challenge is no doubt regulatory. Some jurisdictions, like the EU and Singapore, make concrete crypto regulations with the hope of driving innovation. Other jurisdictions, like the US, view the sector as a "Wild West" and most likely will be resistant to quicker mainstream Bitcoin adoption. Whether Bitcoin will go completely into the center of finance depends on how regulatory frameworks adapt to the unique needs of Bitcoin, and how much mainstream acceptance will be there from traditional financial institutions.

Becoming an alternative and widely used payment method is a challenge, let alone becoming the main means of payment or currency. Because when it comes to payment methods, what most of us care about is transaction fees and transaction speed, not privacy. Meanwhile, it is clear that Bitcoin cannot meet those requirements because it has unstable transaction fees and quite slow speed. I also never thought that bitcoin could be legalized and used as a payment method in the future, nor did I ever support that idea because it is unrealistic to become a reality.

The scarce and decentralized nature of bitcoin makes it more suitable as an asset, store of value or safe haven than as a currency.

Banks can become completely affected this much only when Bitcoin completely becomes a legal tender without an option of fiat in any of the countries where it gains adoption. Provided fiat remains a core legal tender the effect of adopting Bitcoin will not lead to bankruptcy of physical Banks and this is because at some point you will need fiat to spend after your crypto assets has been converted to fiat and that's where the banking comes in. Except acceptance of crypto becomes general then fiat may not be needed as you can make payments with crypto exclusively, such scenarios will hardly even come so I don't see this happening any soon rather I see a possible synergy of they can work independently without the banks insisting on crypto not been decentralized.

Currently, Bitcoin has a limit on the number of daily transactions. If I am not mistaken, the number of daily transactions cannot exceed 400,000. This does not allow 8 billion inhabitants of planet Earth to constantly use Bitcoin to buy goods (works, services). And this is a technical limitation.

In addition, the Bitcoin network has periods of high fees. With such high fees, sending small amounts of money becomes a very unprofitable business. Of course, there is Lightning, but this system is also very imperfect.

Currently, there are serious discussions about creating Bitcoin reserves in the US government financial system. This, in my opinion, shows the vector of further development of Bitcoin.

I think it's really just getting started with the way bitcoin is being adopted and accepted by big firms. It will just be a matter of time before other countries will start opening doors for it because they will not want to be left behind.
 
Such moves will definitely contribute to price increases, but governments of different countries will end up holding large amounts in the bitcoin reserve, which will have both a negative and positive impact. The negative one is price manipulation up to some certain level.

Using bitcoin as an everyday means of payment is expensive, not just because of the high transaction fees, but because of the tax implications for bitcoin transactions in some countries. Some countries see bitcoin as an asset and not as a currency. For this reason, anytime people buy stuffs with bitcoins, it is assumed that they are selling their assets (bitcoin), so they charge tax for that sale. People can actually carryout daily transactions with bitcoin, but according to you, it is unprofitable for both businesses and private individuals. That is why many just prefer to use it as a store of value rather than as a currency.

Anyway, everyone is at liberty to use bitcoin the way they derive maximise benefit from it, and I won't fault anyone for using bitcoin the way they feel is best for them.

I think that as time goes on - more and more people and higher/bigger entities will see the potential in BTC.
It's inevitable and it will be a race of sorts what country or a group would be able to utilize BTC to the best extent - and help the community at the same time to bring awareness for what BTC stands for and why.

I guess the finance institutions or businesses can adopt the use of Bitcoin of course with their mode of payment. Still, they need to consider if their country has now accepted the use of crypto. Then they are one of the large-scale countries or lets say the third world country because once they adopt this too and other countries will follow of course no one wants to be left behind with the trend and they will grab the opportunity to do the same thing. Again the market of crypto is volatile and they need to consider too having an exchange rates.

It is indeed difficult to see the future of Bitcoin, even until now Bitcoin has not been able to become a legal tender worldwide, but only a few countries do that and the rest of the people use Bitcoin as their asset for the future, because the reality is like that it cannot be denied that the development of Bitcoin in the digital world is only anonymous, whatever the role of Bitcoin in the future I support what the community does to Bitcoin as long as it is on a positive path.