During the discussion it was pointed out that nodes and pools association would be like in function of the central bank.
BTC would be a stability asset (like dollar or gold in amounts like banks do (like 1000 USD unit only for transaction among banks)) for atcoins/tokens as derivatives of micro trade (for individual wallets in the function of "small banks').
Topic: Bitcoin as a new World Central Bank (Read 1906 times)
Maybe this idea wont be accomplish but when this idea will be came true some of the staffs in the world will just try to corrupt bitcoins and use their power to manipulate it in order to accomplish their own greed.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Bitcoin cannot be the new world central bank. If bitcoin will be the new central bank many economy will suffer due to the super volatility character of bitcoin. Bitcoin is not stable and a world central bank must offer stability other wise it means big problems on the financial sector and economy. So to make bitcoin a new world central bank we must make its price stable just like gold.
The volatility that Bitcoin experiences is because there is no fixed demand for it. There are almost no instances where we are forced to use Bitcoin. In most cases, the opposite is true in that you couldn't use Bitcoin to make simple purchases even if you wanted to, as it's not widely accepted. If it was used throughout the world, it would be very stable as people would need it for day to day activities rather than a speculative investment.
Even with that stability however, it would never become a central bank. It will be an alternative currency at best.
While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.
Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
Maybe you meant reserve currency? Bitcoin cannot be and will not be a central bank since there is not monetary policy or anything like that, there is not central authority printing bitcoin, but bitcoin could become a reserve currency, that is what we are seeing with some projects having stored some coins as you describe and governments could begin to do the same. Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
I don't like the fact that bitcoins is taking the role of a central Altcoin authority "since it should all be about decentralization" but it only makes sense IMO, Altcoins are not well established and with high demand like BTC is "and hence having direct USD/Fiat to BTC channels" therefore Altcoins can only value itself on BTC value.
Some altcoins have broken from this though, from example ETH, that not only exchanged with USD through exchanges, but can also be directly bought with USD and other currencies.
Some altcoins have broken from this though, from example ETH, that not only exchanged with USD through exchanges, but can also be directly bought with USD and other currencies.
Wait the minute!!! If the Central Bank feels that an increase in consumer spending is needed!!! What?! If they feel it? Do you see this parody? I hope that bitcoin will stay decentralized, cause this is what we will see, if SOMEONE FEELS something he will move bitcoin in that direction.
If they feel good they will print money for them, they will blackmail everyone, other states, other banks, who fuck them all if they feel like that. Bank is evil institution, they print money as they feel like, then they give that money on loans with interest rate. People don't have a clue what is happening, all of a sudden your country owns s lot of money and you need to sell your water, you companies, your everything just to pay your debt to central bank! People wake up!
If they feel good they will print money for them, they will blackmail everyone, other states, other banks, who fuck them all if they feel like that. Bank is evil institution, they print money as they feel like, then they give that money on loans with interest rate. People don't have a clue what is happening, all of a sudden your country owns s lot of money and you need to sell your water, you companies, your everything just to pay your debt to central bank! People wake up!
Text from this site: https://www.oanda.com/forex-trading/learn/intro-to-currency-trading/fundamental-analysis/central-bank
1. 'A primary role for most Central Banks is to supply operational capital to the country's commercial banks. This is done by offering loans to these banks for short time periods – usually on an overnight basis.
This ensures the banking system has sufficient liquidity for businesses and individual consumers to borrow money, and the availability of credit has a direct impact on business and consumer spending.
The Central Bank charges interest on the short-term loans it provides. The rate charged by the Central Bank affects the interest rate that the banks charge their customers as the banks must recover their cost (the interest they paid) plus earn a profit.'
Thesis: So this would be mining pools
2. Central Banks use the relationship between the short-term rates at which it offers loans, and the interest rate the banks charge, as a way to influence the cost for the public to borrow money.
If the Central Bank feels that an increase in consumer spending is needed to stimulate the economy, it can lower short-term rates when providing loans to the commercial banks. This usually results in the banks lowering the interest they charge, making borrowing less costly for consumers which the Central Bank hopes will lead to an increase in overall spending.
If a tightening of the economy is needed to slow inflation, the Central Bank can increase interest rates making loans more expensive to acquire, which could lead to an overall reduction in spending.
Thesis: So this would be fees
3. Supply and Demand of Currency
Just like any commodity, the value of a free-floating currency is based on supply and demand.
To increase a currency's value, the Central Bank can buy currency and hold it in its reserves. This reduces the supply of the currency available and could lead to an increase in valuation.
To decrease a currency's value, the Central Bank can sell its reserves back to the market. This increases the supply of the currency and could lead to a decrease in valuation.
International trade flows can also influence supply and demand for a currency. When a country exports more than it imports (a positive trade balance), foreign buyers must exchange more of their currency for the currency of the exporting country. This increases the demand for the currency.
Thesis: so this would be the role of exchanges that i.e. hold some BTC's for the flow (and FIAT too as a balance)
This is more complicated, though
I'm looking for the common points for more complex analytic..
1. 'A primary role for most Central Banks is to supply operational capital to the country's commercial banks. This is done by offering loans to these banks for short time periods – usually on an overnight basis.
This ensures the banking system has sufficient liquidity for businesses and individual consumers to borrow money, and the availability of credit has a direct impact on business and consumer spending.
The Central Bank charges interest on the short-term loans it provides. The rate charged by the Central Bank affects the interest rate that the banks charge their customers as the banks must recover their cost (the interest they paid) plus earn a profit.'
Thesis: So this would be mining pools
2. Central Banks use the relationship between the short-term rates at which it offers loans, and the interest rate the banks charge, as a way to influence the cost for the public to borrow money.
If the Central Bank feels that an increase in consumer spending is needed to stimulate the economy, it can lower short-term rates when providing loans to the commercial banks. This usually results in the banks lowering the interest they charge, making borrowing less costly for consumers which the Central Bank hopes will lead to an increase in overall spending.
If a tightening of the economy is needed to slow inflation, the Central Bank can increase interest rates making loans more expensive to acquire, which could lead to an overall reduction in spending.
Thesis: So this would be fees
3. Supply and Demand of Currency
Just like any commodity, the value of a free-floating currency is based on supply and demand.
To increase a currency's value, the Central Bank can buy currency and hold it in its reserves. This reduces the supply of the currency available and could lead to an increase in valuation.
To decrease a currency's value, the Central Bank can sell its reserves back to the market. This increases the supply of the currency and could lead to a decrease in valuation.
International trade flows can also influence supply and demand for a currency. When a country exports more than it imports (a positive trade balance), foreign buyers must exchange more of their currency for the currency of the exporting country. This increases the demand for the currency.
Thesis: so this would be the role of exchanges that i.e. hold some BTC's for the flow (and FIAT too as a balance)
This is more complicated, though
I'm looking for the common points for more complex analytic..
Maybe this idea wont be accomplish but when this idea will be came true some of the staffs in the world will just try to corrupt bitcoins and use their power to manipulate it in order to accomplish their own greed.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Bitcoin cannot be the new world central bank. If bitcoin will be the new central bank many economy will suffer due to the super volatility character of bitcoin. Bitcoin is not stable and a world central bank must offer stability other wise it means big problems on the financial sector and economy. So to make bitcoin a new world central bank we must make its price stable just like gold.
Bigger whales has bigger invested billions of their money with bitcoin and I think they're not storing their money anymore in the fiat money world central bank. They are making bitcoin as their new world central bank, because it's more profitable than fiat money banking, due to much higher profit gains compared from traditional money bank which has slow moving interest of your their money. Even though bitcoin currency has an erratic and unstable currency price in the market, but it doesn't removed the trust of bigger whales because when it fluctuates everyone here in the bitcoin system has been benefited well.
Yes. I would risk a thesis that BTC is for 'internal' transactions - like Dollar or Euro, while LTC is for sending (like SEPA) because of faster and low-fee charges. https://en.wikipedia.org/wiki/Single_Euro_Payments_Area
Still, there is a risk of flash crash, while BTC is more stable during the 'period' of transaction. No problem if it takes small amount of time - however, changes may represent even couple of % (that's the basis of arbitrage). This is the difference of banks, that have a stable transaction value of, i.e. dollar, but having so big spreads.
This shows the general rule of BTC - it may represent the IDEA of any king of good or commodity, however, we function in a society that is under some economical assumptions, which influence the main idea of decentralized BTC.
Still, there is a risk of flash crash, while BTC is more stable during the 'period' of transaction. No problem if it takes small amount of time - however, changes may represent even couple of % (that's the basis of arbitrage). This is the difference of banks, that have a stable transaction value of, i.e. dollar, but having so big spreads.
This shows the general rule of BTC - it may represent the IDEA of any king of good or commodity, however, we function in a society that is under some economical assumptions, which influence the main idea of decentralized BTC.
While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.
Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
Oh... That's not stupid at all.
There is indeed the idea of stability and strength in BTC. More than in any altcoin.
There is this idea that to get an altcoin you sell BTC
I mean 99% of the time you just can't buy an alt with fiat, you need BTC.
I don't know if it took the role of a central bank though. But it did indeed took the role of main currency rather well. In the same way that for long all trades of currencies has to go through $, now all trades of altcoins have to go through BTC ^^
Thank you for responses, again.
As for the reply that the central bank dictates the monetary policy. Isn't that similar like this scenario: https://cointelegraph.com/news/unrealistic-timeframe-bitcoin-core-developers-criticize-bitcoin-scaling-agreement
Changing block size would have a huge impact, i.e. on fees. More info: https://segwit.org/
Undoubtedly the BTC took the role of 'comparator' to other cryptocurrencies
As for the reply that the central bank dictates the monetary policy. Isn't that similar like this scenario: https://cointelegraph.com/news/unrealistic-timeframe-bitcoin-core-developers-criticize-bitcoin-scaling-agreement
Changing block size would have a huge impact, i.e. on fees. More info: https://segwit.org/
Undoubtedly the BTC took the role of 'comparator' to other cryptocurrencies
Maybe this idea wont be accomplish but when this idea will be came true some of the staffs in the world will just try to corrupt bitcoins and use their power to manipulate it in order to accomplish their own greed.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Bitcoin cannot be the new world central bank. If bitcoin will be the new central bank many economy will suffer due to the super volatility character of bitcoin. Bitcoin is not stable and a world central bank must offer stability other wise it means big problems on the financial sector and economy. So to make bitcoin a new world central bank we must make its price stable just like gold.
Maybe this idea wont be accomplish but when this idea will be came true some of the staffs in the world will just try to corrupt bitcoins and use their power to manipulate it in order to accomplish their own greed.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Also when bitcoin came as a new world central bank the bitcoins value will slowly to rise up cause many people are depending on it.
Currently there are some banks that respond well about bitcoin, even working together in finance, this makes the value of bitcoin will be more expensive, chances are it could happen if bitcoin into the world bank
Yes I agree, after prices skyrocketed from $1200 to $2500, all people are increasingly optimistic that bitcoin is going to be a global currency and world central bank replace world bank, we will see next day many countries will transactions with bitcoin (not USD, JPY, EURO and more).
While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.
Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
It unwittingly took the role of reserve currency because it came first, there aren't many other reasons for Bitcoin being in the position it is right now if not for the fact that Bitcoin has the largest community, and it came first, allowing for it to grow while everything else was being developed. If it came about now in the entire development of cryptos, it would be ignored or passed as a shitcoin due to the lack of features or flaws present.Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
Not trying to say Bitcoin is bad, it is great, but you have to be realistic about it all.
believe that bitcoin is working as a central bank or we can also say that bitcoin is a central crypto currency for any project. That is why everyone like to get BTC for their project. That also show that more people even the founders of altcoins believe on bitcoin.
i think bitcoin can not act like a central bank because every people has its own to manage the bitcoin in their wallet. if its like a central bank then we need some system or some group of people that can controlled or manage all bitcoin that have been exist and still in mining and watch over for not using in the wrong hand. if this is the case, then its really hard to do, because i am sure, the population will be bigger than only watching a member from one bank only and we are talking about a whole bitcoiners in every country.
I can say so because all this is a development, which is positive in this era, because bitcoin is slowly becoming the benchmark of a virtual currency
believe that bitcoin is working as a central bank or we can also say that bitcoin is a central crypto currency for any project. That is why everyone like to get BTC for their project. That also show that more people even the founders of altcoins believe on bitcoin.
While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.
Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?
A central bank dictates the monetary policy of a currency, so Bitcoin would not be a central bank.
It's an alternative currency for the world to use if they wish, but it is decentralized. In terms of Bitcoin being a stable investment...not sure about stable with the volatility we're seeing, but I think it will be something to add to someone's diversified investment portfolio. I think it becomes even more attractive for countries that have particularly weak currencies and problems with inflation to begin with.
Jump to: