Yeah.... It's kinda the entire problem with Bitcoin as a concept. It's the bastard child of a commodity and currency, featuring the worst aspects of both its parents.

It's a commodity with no inherent value, and a currency with no guaranteeing partner or oversight. Tbh the only real values it can express are all highly detrimental towards society at large.

Sure it sucks as a currency, but it if you're the only town doing it then it might work okay as a tourist attraction to draw in any remaining wealthy bitcoin enthusiasts.

Only for transactions on the main (L1) blockchain. Small transactions are usually done on a secondary (L2) blockchain so they're fast and cheap, and then periodically synced back to the L1 chain in one big transaction.

I dont think its that big, but bitcoin is also very slow, which wont help.