Will bitcoin compete with the USD for an increasing amount of transactions

Perhaps even oil sales between china and russia

Would bitcoin be able to do such large payments

Would the Yuan backed by gold seem more logical

Will the USD gradually be used less and less for payment in far eastern countries

I think this will happen, not sure exactly how and over a long period of time perhaps 10 yrs. Most things such as this is a process over time

If so then inflation will increase in NA as it takes more USD to by scarce goods plus the population and gov't seems to be on a spending spree

I think the USA gov't has spent 10 trillion in the past 12 months

The list of scarce materials is growing, not the least of which is chips for auto production. Used cars have increased a lot in the past few months. Just one segment of inflation as money chases scarce goods. Need I mention houses

That is a lot of pent up spending aided by gov't free money

Remains to be seen how other countries re-act to the USD value. Some countries are buying gold in lieu of USD and perhaps bitcoin. The banks will try to suppress the price of gold,[I think] on the London, England gold market and the Comex

This is all too confusing for me