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Topic: Betting on bitcoin against Central Bank Digital Currencies - page 2. (Read 678 times)

legendary
Activity: 3010
Merit: 3724
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People can not avoid to use fiat in their lives. Paper fiat or coming CBDC, we can not avoid to use them but I agree with you that in any nations, choose the most trusted banks to use and at least chose 2 banks (a basic of decentralization, even when use banks try to diversify to at least 2 banks). Big and trusted bank can be compromised and destroyed inside that we don't know till the day it announces a bankcruptcy.

I don't go all in on Bitcoin, same as you. Because as said, I need some amount of fiat to use, and to manage risk. Investment in bitcoin should be made with free money that we don't have plans to use in near future. Beyond bitcoin, another fund in fiat for emergencies.

Yeah, that's how I'm spreading my risk. 2 banks in my home country, and one in my resident country, across 3 currencies (my home, euro and dollars). I could still be f*cked but I'm more confident of a free bank insurance scheme than anything else right now. And then of course I have my Bitcoin, which I have the least confidence in (during my lifetime).

As I said, it'd be very different if I were alone in this life but well, we have to live in reality, and we can't gamble with the lives of others...
legendary
Activity: 2282
Merit: 1023
I find it very interesting  as we have been taking about how banks will struggle due to continues printing of money especially to bail out the pandemic.
What changes it will achieve when a central bank currency goes digital, nothing happen if the country is still printing out money in any form, i am not going to compare between the central banks and the cryptocurrency space as both has different applications and i started using a decentralized currency for my freedom and privacy which i will never get in a centralized currency and both has its advantages and disadvantages.
sr. member
Activity: 987
Merit: 289
Blue0x.com
     Well, if you really think about it, bitcoin is the winner here if we talk about the long run. It's pretty logical since we can all see the flaws of the fiat we use wherever you are in the world. Although bitcoin has flaws of it's own, if you really are careful and if your country really does allow crypto currencies, then bitcoin truly is the better bet. But hey, that's just me and my view. Just saying that with the things happening in the world today, I trust bitcoins more than fiat.
hero member
Activity: 2814
Merit: 734
Bitcoin is GOD
To be honest, I'm afraid the average person might just use what the government officially issues. And whether or not governments would fully do away with bills and coins, the replacement is actually no better. Digital fiat currencies make monitoring of transactions easier on the part of the authorities.

But if only the average Joe is concerned even a little bit of his privacy and freedom. If he is at least moderately critical of how the financial system is being ran on the basis of a handful of people's faulty decisions, he might be very grateful Bitcoin is an open option.  
We will have to wait and see, currently there is no much point for governments releasing their own coins because most people will not use them and the few that could like us will not adopt them because we know those coins are going to be even worse than their fiat counterparts, so they need something to bait people, above it was suggested that governments could seduce people with free money and that is definitely a possibility.

However it does not matter what they do if people like us keep supporting bitcoin then they will always have to face a competitor they cannot kill and that has characteristics that are superior to their fiat making it an attractive investment option for those do not believe the fiat currencies can last much longer.
sr. member
Activity: 1876
Merit: 318
To be honest, I definitely prefer use Bitcoin when compared to CBDC, there are several reasons why I prefer use Bitcoin.
It is clear that I chose Bitcoin because as long as it is decentralized, the total Bitcoin supply is limited and most importantly
transparent. But most of the people around the world, would prefer CBDC which has support from the government.
 
jr. member
Activity: 84
Merit: 3
If only some people will try BTC to know how bitcoin is tested and trusted, they will like to bet with bitcoin than central bank.I think central bank is centralized,it can cause go slow in the market at anytime, because it's control by the government,while bitcoin is decentralized,is  not control by government.
Betting with  bitcoin which is good in digital currencies for easy profit making.
legendary
Activity: 3332
Merit: 1404
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I think Bitcoin is a safer bet. Centralized cryptocurrencies are neither trustworthy in the eyes of people nor revolutionary enough. They are boring: too stable and much like fiat, but you have to learn how to use cryptos. If fiat crashes, I don't think the centralized coins will survive. If it doesn't, there's no need for them (debit cards with fiat are just fine). Moreover, it seems that the govs are cautious when it comes to cryptos with centralization and regulation, and if they are not certain, there's no reason for people to be. Bitcoin will not necessarily crash if fiat crashes, and the fact that its price and supply cannot be controlled by any particular institution seems reassuring to me.
hero member
Activity: 1918
Merit: 564
Many Banks will soon start investing in crypto, realizing that fiat currencies are losing ground.

I believe they rather invest in blockchain technology and create their own cryptocurrency instead than adopting the existing one.  This way bank have full control of the released token.



Well, I think Central Bank has Bitcoin in their mind but they are too proud to accept that it is superior than their current Digital finance system once fully developed.  Central Bank may adopt Bitcoin but it will not let Bitcoin control the finance system.  In short, Central banks will ride the popularity of Bitcoin with ulterior motive of taking control of its ecosystem if not its blockchain.

In conclusion, Central bank had its say when it comes to financial system because they have the authority.  There is no way Bitcoin can compete with them when it comes to authority.  But Bitcoin will definitely have an effect on how central banks shape the future of financial system.




You don't think so? Can the government print more of Bitcoin's supply at will like they do with fiat? Can the government stop my transaction? Can the government take my coins from me?

They can't print more BTC but they can create another cryptocurrency according to their likings.

Plus I'm not talking about adoption, that will come in the right time, with or without regulation. It can't stopped.

I definitely agree on this part but without regulation, it will take more time to be adopted.  And when it is adopted, government will find ways to regulate it.
jr. member
Activity: 66
Merit: 1
Many Banks will soon start investing in crypto, realizing that fiat currencies are losing ground.
legendary
Activity: 2044
Merit: 1018
Not your keys, not your coins!
Great points, and for the uninitiated, it might not make much issue... in fact, I know some people actually feel safer putting their money in a centralized entity. All for understandable reasons... I myself don't go all in on Bitcoin, can't afford to, I am not alone in this world so I also have to trust at least 2 governments via their bank guarantee scheme =)
People can not avoid to use fiat in their lives. Paper fiat or coming CBDC, we can not avoid to use them but I agree with you that in any nations, choose the most trusted banks to use and at least chose 2 banks (a basic of decentralization, even when use banks try to diversify to at least 2 banks). Big and trusted bank can be compromised and destroyed inside that we don't know till the day it announces a bankcruptcy.

I don't go all in on Bitcoin, same as you. Because as said, I need some amount of fiat to use, and to manage risk. Investment in bitcoin should be made with free money that we don't have plans to use in near future. Beyond bitcoin, another fund in fiat for emergencies.
hero member
Activity: 924
Merit: 520
CBDCs are still a concept and its' too early to proclaim their domination,but I'm pretty sure that 90% of the people will accept them.
The vast majority of the people are just conformists,they will follow the rules and accept every BS that is introduced by their governments/central banks.
Being a "Bitcoiner" means that you are not a part of the financially uneducated conformists and you are aware about the BS fiat money banking system.The true "bitcoiners" and supporters of a truly decentralized financial system will always remain a minority.


I guess so, but the only real question right now is when will these Governments will implement their own CBDC which I presume would have unwanted repercussions towards its respective economy.

Until then we could just only speculate with different ideas on how people would react to such radical changes, especially on those who don't trust their own Governments. Imho.
legendary
Activity: 2898
Merit: 1823
It's not a debate, CBDC changes nothing. It's still state-issued money that was made to maintain the status-quo.
 

As a payment system, CBDC will gain more adoption compared to a decentralized system which is bitcoin, digital or paper money, still bitcoin will always lag behind as digital currencies made by government will always gain the trust of the people even though we may say that the government might not be able to run our economy effectively.


Of course, but if you need an opt-out mechanism, or you need a self-sovereign, censorship-resistant currency, you know where to go. Cool

Bitcoin is the separation of money and state, and your back-up/fall back once the state loses control of the economic and monetary system.


I don't think so because in order for bitcoin to gain adoption, we need the government to regulate it, it doesn't matter if they are different (centralized vs decentralized) as in the end, no such thing exist in this world especially about finances that are exempted from regulation.


You don't think so? Can the government print more of Bitcoin's supply at will like they do with fiat? Can the government stop my transaction? Can the government take my coins from me?

Plus I'm not talking about adoption, that will come in the right time, with or without regulation. It can't stopped.
sr. member
Activity: 1246
Merit: 263
SmartFi - EARN, LEND & TRADE
I would choose digital banking because it helps to promote the monetary system in the developed country, but investing I would choose bitcoin.
The reason: more transparency means less money laundering and congestion, better system liquidity, etc.
Bitcoin was launched in 2009, and Satoshi quickly mined himself 2 million bitcoins before releasing the source code to anyone. Those who owned the first bitcoins became rich. The latecomers are at higher risk. Bitcoin has more speculative and manipulative value in the market as people have seen bulls and bears in history. I would choose Bitcoin to invest in because it has long term value.
legendary
Activity: 2548
Merit: 1234
Nothing's to bet on and they aren't comparable because they had different cons and pros that we should be considered on our side, but then, they are competing with wich better.

The concept of the CBDC's using digital currency probably is to compete for the cryptocurrencies but for us, they are both useful to us. But in this competition, Bitcoin has a better advantage than national digital fiat currency. The CBDC's currency is regulated by the bank, this meant established as money by government regulation, monetary authority. On the other hand, cryptocurrency is decentralized and it is governed by the majority of the community, powered by blockchain technology.

So, I think people choose with a better advantages and obviously Bitcoin has now a large adoption. Vast of majority when we talked about transaction online people concerned are privacy which is Bitcoin can able to do that.
legendary
Activity: 3010
Merit: 3724
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Decentralization:
- Bitcoin: Yes; CBDC: No

Limited and fixed total supply:
- Bitcoin: Yes; CBDC: No.

A public and transparent plan of currency issue:
- Bitcoin: Yes: CBDC: No.

Great points, and for the uninitiated, it might not make much issue... in fact, I know some people actually feel safer putting their money in a centralized entity. All for understandable reasons... I myself don't go all in on Bitcoin, can't afford to, I am not alone in this world so I also have to trust at least 2 governments via their bank guarantee scheme =)
legendary
Activity: 2044
Merit: 1018
Not your keys, not your coins!
It's true that Bitcoin has an advantage on these categories, but let's not forget that a centralized digital currency also has it's advantages that are definitely going to be necessary for A LOT of people. Some being:

1. Reversible transactions(both an advantage and and disadvantage)
2. Not needing to backup any private keys
3. Non-volatile(this is a temporary problem for bitcoin, but yea)

etc. Basically, a centralized digital currency is going to be far more idiot-proof compared to Bitcoin.

While I'm personally bullish on Bitcoin, I think it's healthy to look at the disadvantage as well, and not be a perma-bull.
The decentralization of Bitcoin makes serious debate when protocol need to be upgraded but the disadvantage can not wash away all advantages of BTC.

CBDC has its most shameful disadvantage: No privacy.

Governments have full rights to trace your CBDC transaction and they do know who you are and what you own. Bitcoin beats CBDC with privacy.
legendary
Activity: 3080
Merit: 1500
So I came across with this topic "Bitcoin or Central Bank Digital Currencies: Which is the Better Bet?" and I find it very interesting  as we have been taking about how banks will struggle due to continues printing of money especially to bail out the pandemic.

Quote
One way or another, digital currency is in our future. Since Bitcoin’s blockchain launched in 2009, more and more converts have become purists and accepted the idea that a decentralized currency without an authority figure overseeing its use is not only a distinct possibility, but possibly the way of the future.

That being said, people who are truly sold on the idea of living off of Bitcoin or any other decentralized currency are still in the minority. Most people are comfortable using credit and debit cards nowadays for cashless transactions, and many more still will likely support the idea of a government merely doing away with paper money altogether and offering its citizens a digital currency alternative that is still tied to central banks.

Odds are most people will use the latter if governments make it easy to do so. But the real question is, what is the better bet in the long run? Is it going to be easier or more fruitful to use Bitcoin and decentralized currencies? Or is the average person just going to settle for using government money that no longer requires paper or coins?

Answering these questions requires taking a slightly deeper look at the evolution of money and the idea of transferring value between one another.

source : https://www.bitcoingg.com/news/bitcoin-or-central-bank-digital-currencies-which-is-the-better-bet/


So what do you think, is it right to start betting bitcoin now?


If you have been using Net banking facility and plastic card facility since some time - you are already familiar with how a Central Bank issued digital currency will work. In real life, I have been living cashless since a long time now after the introduction of "UPI" in my country. If you don't know what UPI is, please Google it. It's a very simple method of transferring money at a very nominal cost. It has become so easy that even street vendors have started using it and the buyers have stopped using wallet because everything is there within their smartphone only. I don't think digital money will bring in any different experiences to the users.

Bitcoin is technically far more inferior than the current UPI system (please don't kill me for speaking the truth)! But bitcoin is also structured in a different way than traditional currency system even if it is digitalized.

If you want to make money out of money - bet on bitcoin but when it comes to usability, digital currencies are far ahead than bitcoin!
legendary
Activity: 3542
Merit: 1966
Leading Crypto Sports Betting & Casino Platform
The answer is actually straight forward...

Whatever the government force onto people, they would gladly accept... and by force, I am referring to the subtle policies/rules/regulations that are implemented to stop the competition and to enforce their own agenda.

You will see a load of GovCoins being developed in the future and a clear distinction being made between GovCoins and all other tokens and then legislation being implemented to protect GovCoins and also to stop the use of all other tokens.

GovCoins are cheaper to create than Fiat currencies, so this is going to happen sooner than you think.  Angry
hero member
Activity: 3234
Merit: 941
CBDCs are still a concept and its' too early to proclaim their domination,but I'm pretty sure that 90% of the people will accept them.
The vast majority of the people are just conformists,they will follow the rules and accept every BS that is introduced by their governments/central banks.
Being a "Bitcoiner" means that you are not a part of the financially uneducated conformists and you are aware about the BS fiat money banking system.The true "bitcoiners" and supporters of a truly decentralized financial system will always remain a minority.
hero member
Activity: 1834
Merit: 759
I've always felt like the two aren't comparable. I mean, honestly, how many people actually use Bitcoin just because it's digital? Its biggest selling point has always been its decentralization -- I'm sure a lot of the average users don't really care about the concept, but it's what allows us to spend any way we like, or make even more money through price fluctuations. This is where Bitcoin's strength lies, and I don't think digital currencies can even begin to compete with it in this area.

I'm sure digital currencies will be used more frequently barring monumental fiat collapse, but that doesn't mean they're better, just that Bitcoin is typically used on other things.
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