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.

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.

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.