4 ms·

I feel like it's a matter of time until the central banks release a coin (gold backed?) and kick Bitcoin and all other crypto's out. Keeps them in power, uses t

by adflux 6y ago

I feel like it's a matter of time until the central banks release a coin (gold backed?) and kick Bitcoin and all other crypto's out. Keeps them in power, uses the advantages of crypto.

Cthulhu_ 6y ago
Fiat currency has been gold backed for a long time, until it no longer was - why go backwards? If you want something gold-backed, just buy gold.
deleted 6y ago
[deleted]
dgellow 6y ago
Digital currencies for central banks (CBDC) do not require a blockchain to exist. They are two different things, I don't think they will compete with each others.
- mumblemumble 6y ago
  You might even argue that they require a blockchain not to exist. A coin that's designed to be centralized needs blockchain (as opposed to something simpler like a hash chain) like a fish needs a snorkel.
pb77 6y ago
I think countries are going to get their own digital currency and ban crypto. I saw some news on India that they are looking to ban all crypto and just looking to push indian digital currency. China is developing digital yuan so i am not sure what will happen to bitcoin that you own if the country deems it illegal.
gnrlst 6y ago
I disagree. While it would do a lot of damage, the advantage of a properly scalable and functioning decentralized cryptocurrency (not implying BTC is the right one) is that it cannot be controlled by any central bank, or anyone else. That is the inherent elegance of such a solution. While in the Western world there is little need for a parallel monetary system except for the black market, other countries are not as fortunate and do not trust their central banks with anything (classic example is Venezuela). You could argue Gold is still a good alternative, but owning, transferring gold is problematic unless you actually store it yourself. Any "title" to gold somewhere else can inevitably be seized by a government (or your house raided). Encryption keys are much harder to seize if taken care of properly.
- jonnycomputer 6y ago
  That is an advantage, because? Venezuela, please. Bitcoin is never going to replace the ability of a sovereign state from issuing its own obligations. And as always it is the credibility of that sovereign state that will determine the value of those obligations.
rawtxapp 6y ago
Central banks will never truly produce a blockchain based crypto, they won't be able to control it and they will also never make it gold backed, they can't control it.
- adflux 6y ago
  Blockchain =/= decentralized, read: Tether. Most popular stablecoin, yet one guy holds the power to create, alter or delete wallets/coins. Something that runs on the blockchain can be controlled by a singular entity.
mixedCase 6y ago
I know this is controversial to some, but IMO if it keeps them in power and is backed by a physical asset, it's just an overengineered database, and not a true cryptocurrency because it misses the point which is about control. And yes, I'm well aware of many such meaningless """cryptocurrencies""".

by adflux 6y ago

I feel like it's a matter of time until the central banks release a coin (gold backed?) and kick Bitcoin and all other crypto's out. Keeps them in power, uses the advantages of crypto.

Cthulhu_ 6y ago

Fiat currency has been gold backed for a long time, until it no longer was - why go backwards? If you want something gold-backed, just buy gold.

deleted 6y ago

[deleted]

dgellow 6y ago

Digital currencies for central banks (CBDC) do not require a blockchain to exist. They are two different things, I don't think they will compete with each others.

mumblemumble 6y ago
You might even argue that they require a blockchain not to exist. A coin that's designed to be centralized needs blockchain (as opposed to something simpler like a hash chain) like a fish needs a snorkel.

pb77 6y ago

I think countries are going to get their own digital currency and ban crypto. I saw some news on India that they are looking to ban all crypto and just looking to push indian digital currency. China is developing digital yuan so i am not sure what will happen to bitcoin that you own if the country deems it illegal.

gnrlst 6y ago

I disagree. While it would do a lot of damage, the advantage of a properly scalable and functioning decentralized cryptocurrency (not implying BTC is the right one) is that it cannot be controlled by any central bank, or anyone else. That is the inherent elegance of such a solution. While in the Western world there is little need for a parallel monetary system except for the black market, other countries are not as fortunate and do not trust their central banks with anything (classic example is Venezuela). You could argue Gold is still a good alternative, but owning, transferring gold is problematic unless you actually store it yourself. Any "title" to gold somewhere else can inevitably be seized by a government (or your house raided). Encryption keys are much harder to seize if taken care of properly.

jonnycomputer 6y ago
That is an advantage, because? Venezuela, please. Bitcoin is never going to replace the ability of a sovereign state from issuing its own obligations. And as always it is the credibility of that sovereign state that will determine the value of those obligations.

rawtxapp 6y ago

Central banks will never truly produce a blockchain based crypto, they won't be able to control it and they will also never make it gold backed, they can't control it.

adflux 6y ago
Blockchain =/= decentralized, read: Tether. Most popular stablecoin, yet one guy holds the power to create, alter or delete wallets/coins. Something that runs on the blockchain can be controlled by a singular entity.

mixedCase 6y ago

I know this is controversial to some, but IMO if it keeps them in power and is backed by a physical asset, it's just an overengineered database, and not a true cryptocurrency because it misses the point which is about control. And yes, I'm well aware of many such meaningless """cryptocurrencies""".