I would say that much of the reason for that is because of the perception of the currency that is widely held. It's not much good because people think it's not much good. I bought a few things online years ago with Bitcoin and it worked pretty much the way it should, but most of those places that accepted it stopped . Mostly they stopped due to the public perception.
I do wonder if it has a chance to become useful once it is old enough to not be considered interesting, and the idea of holding something while it increases in value dies.
I mean if somebody accepts precious metals, jewels etc. as payment in lieu of actual money that doesn’t mean those things suddenly become a currency.
Even if you can pay for stuff with bitcoin it’s not a currency until people actually start setting prices based on it.
> liquid enough
I’m sure I could find people who would accept Apple’s stock in lieu of actual money, that wouldn’t make it a currency
There are numerous places and times around the world that you can look at the situation that occurred and see that Bitcoin would have been a boon had it been established at that time.
Future instances will exist like that, and perhaps that's a good enough role for it to exist on it's own. It can be the candle that provides light when the power goes out.
The irony of course that it doesn't work if the power goes out, but that's another degree of infrastructure damage entirely. It might even be sufficient to ensure the power doesn't go out during some crisis.
Its relatively long average block interval (10 minutes) and strictly limited maximum block size limit the total bandwidth requirement for a full node to a few kilobits per second, and you can easily run that on a laptop that consumes a few watts, easily supplied from a relatively inconspicuous solar panel or handheld gasoline generator run at a 1% duty cycle. Blockstream supplies a satellite feed of the blockchain that requires no internet connection, just a groundstation that costs less than a laptop and uses slightly more power.
Outbound bandwidth requirements from the place where the power has gone out are many orders of magnitude smaller. A Bitcoin transaction is a few hundred bytes, so outbound bandwidth requirements for transmitting one transaction at a time are a few bits per second without adding significant delay, and because the transaction is valid indefinitely in the absence of double-spending, potentially down to a small fraction of a bit per second if further delays of hours or days can be tolerated.
Now, it's true that power needs to stay on somewhere for the miners to keep running, and the miners need to be able to transmit their mined blocks to the rest of the network fast enough to avoid many orphaned forks, which requires bursts of somewhat higher bandwidth. But keeping the power on somewhere is much more likely than keeping it on everywhere.
I don't understand LN2 well enough to do this kind of analysis on it, but I'd expect it to be less tolerant of such extreme infrastructure degradation.
USD and/or EUR depending on the continent would have been used instead in such countries which have failing monetary systems.
Problem is that governments in those countries (like Argentina) often impose capital controls making it hard to acquire foreign currency. Bitcoin is almost always only a solution to that specific problem (i.e. government restrictions not currency instability).
Calling it a currency is a huge stretch. It’s an extremely successful token/“asset” but it’s about as much as a currency as gold is these days if not less (based on what most people use it for).