[jollybean]

This is not about incentives to spend or invest - it's about having a functioning basic unit of economic measure that is 1) stable 2) has integrity and 3) hopefully under the control over the government.

BTC isn't good for any of that.

USD is good for 1 and 2.

The gov. can move to re-establish it's currency and have 3 as well.

[beckingz]

Looks like USD may be losing qualities 1 or 2 depending on how you define stability or integrity.

[jollybean]

Just the opposite, during difficult times people rush to USD which bolsters 1 and 2.

That it's used widely and fungible is what gives it value.

If your own currency is destroyed, you use the one that has the most integrity that's relative to your country. For most nations the default would be USD. For Vietnam probably RMB. For Belarus either Euro or Rouble.

Then you develop integrity in governance and switch to a national currency.

A nations currency is actually a vert good measure of the competence and integrity of the leadership class.