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If the coin is run by the central bank then they could put up >50% of the mining capacity. Then if there was a run, just ignore transactions.
by aunty_helen 9y ago
If the coin is run by the central bank then they could put up >50% of the mining capacity.
Then if there was a run, just ignore transactions.
- jdc 9y agoI only skimmed the paper, but it seems to me that the authors' concern is for runs on the smaller banks.
- thathappened 9y agoReads like the smaller banks buffer a run on the central bank and there's no buffers on digital because it's 24/7 and no centralized control.
- freejulian 9y agoWhy would anyone choose to hold a coin controlled by the central banks if it’s the system created by the central banks they’re trying to escape? The safest and most proven cryptocurrency is Bitcoin - and that’s where the flight to safety would be.
- ethbro 9y agoBecause people are interested in stability and making money, with individual weights on the two. Bitcoin has first mover advantage, but it's sorely lacking in stability. If an average person were confronted with knowledge that their bank might collapse, they're going to run to FedCoin, not fully decentralized stuff.
- freejulian 9y agoYes, to escape the mess made by the federal reserve people will run to FedCoin! Doubtful. Also, bitcoin is very stable.
- thedufer 9y agoIn two comments here you've called USD unstable and Bitcoin stable. Can you explain what stability of a currency means to you? Because it appears to be very different from how the rest of us define it.
- optimuspaul 9y agoUntil they realize they are standing on thin ice and everyone flees the bitcoin market(s). What happens then when nobody wants to buy into bitcoin?
- freejulian 9y agoThere will always be buyers. The properties of bitcoin appeal to a great many people.
- aunty_helen 9y agoIf your chequing / savings bank uses the CBDC like they do currently with CB issued fiat, you may not have a choice. If the central bank regulates that they must use it for bank to bank non-forex transfers, you may have even less of a choice. Think of the CBDC as a replacement for the current fiat transfer mechanisms and less of a bitcoin decentralisation project. On the other side, a CB backed currency does have it's advantages. Stability and security being the biggest (perceived).
- freejulian 9y agoWe don’t have a stable CB backed currency today though. The USD loses, at best, 2% of its value a year. That’s not stable.
- pjc50 9y agoBitcoin frequently changes in value by more than 2% every single day. Sometimes within the 15 minute confirmation window. Price stability has very little to do with money supply and more to do with the wider economy.
- thathappened 9y agoIsn't a run literally based on the fear the system is overextended and those last will be losers? Isn't this the whole purpose of crypto? To extend credit when earned therefore not overextended like credit systems?
- aunty_helen 9y agoYes but it could also be the threat of their money being worth less or that they won't have access to their money tomorrow.