One of the main reasons why methanol was used as a race fuel was flammability and the fact that it could be effectively extinguished with water since it is hygroscopic. The flammability was a big issue due to gasoline series like F1 and sports cars fires and garage fires in the era of the change and looking for a perceived "safer" alternative.
I don't like the stuff but it has its place, I just don't think it belongs in road fuels.
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