Topic: Bitcoin as a new World Central Bank - page 2. (Read 1906 times)

Yes but until then it holds true so let's just wait and see since we don't know the future. Altcoins keep coming but we haven't seen any capable of outdoing Bitcoin so for me I think it become the global central bank in disguise until the right time.

thesis no.6

if not central bank, maybe then the network undergoes consolidation - with the higher meaning of 'corporation' nodes?

Hi, thank you all once again for responses.

Conclusions as theses from several answers:

1. BTC took the role of USD in relation to the 'real' world
2. I would risk a thesis that if pt 1 is true - then the network is a central bank, while BTC is it's payment instrument
3. Yes, central banks operate basing on interests and money production, as well as lending. In such relation, while there is no 'single mining' took the role nodes.
I would risk a thesis that if the 'interest' rate is established due to the inflation mechanism, fees for transactions are like loan interests of the central bank
4. Stabilization role of BTC in relation to alts and tokens - there was a good comparison to commodities. BTC is a common good, while the rest is derivatives. It all depends on market cap, maybe this role will be changed by the other currency?
5. Yes, BTC i decentralized, however I would risk a thesis that the whole network is a centralization process thinking about nodes only (nothing can be done without blockchain notification), so it is not so independent

Theses are contradictory, as I would like to compare the stabilizing role of BTC to the classical market, which also changes due to internet banking (money becomes more and more a virtual thing). This is really a hard discussion, as it seems there a lot of common and coherent characteristics, while the original decentralization assumption predominates.

Edit: look at the number of nodes: https://bitnodes.21.co/dashboard/?days=365 vs. the thesis where 'transaction fees' state a 'loan' of the 'banks' <=> nodes.

I wouldn't go so far as call it a central bank. I mean, I have bits but still use my credit card. There's also no bitcoin body that would provide usual bank services like loans.

I think of bitcoin as more of a personal bank. I keep my money where I want it and there's no way you are taking it from me, LOL. Also beats keeping my money in a bank's savings account with their pretty much non-existent interest rate.

Bitcoin is a decentralized entity but it has taken the role of the US DOLLAR in relation to all other altcoins and tokens on the market. So it's like a parallel universe and a new economic area for investment and also business related activities. Banks and other institutions are now getting very interested in blockchain technology so Bitcoin is becoming a hub for tech and problem solving too.

I think that you've got the whole idea of bitcoin wrong.

Bitcoin in ICOs are simply a way for ICOs to gain their initial funding - nothing else. Bitcoin itself cannot print more money to cover for these ICOs nor can ICOs take out loans from the bitcoin infrustructure. bitcoin is the currency here, not a bank.

The fact that ICOs are using bitcoin means that they are acknowledging bitcoin as the first and most trustworthy cryptocurrency to hold - even though they have their own competing projects going on.

Bitcoin has not played the role of a central bank but rather as the universal legal tender for all cryptocurrency all around the world. Just like the US dollars which is the center of foreign exchange bitcoin is the center for Cryptocurrency exchange. In short bitcoin is the US dollar in the digital form. This is the reason why bitcoin is very stable since the more altcoins that will appear the more the price of bitcoin will become.

Central bank has it's own definition and most definitely bitcoin will not suit on that definition.
It is just a good for me that can be used for online transaction while central bank manages the banks itself.

Central bank. Hmm kinda looks like that only. Bitcoin is manager of all currencies which are produced virtually. As we can see the prices of all alts and ICO are solely dependent on BTC only. It is rider in the world of these tokens. This is why most of us choose to invest in BTC directly as we know the returns are high from BTC only. No other alts, ICO can compete it in the market and never will as BTC is one of its kind and rare.

Definitely not a central bank because in my understanding central bank is centralized and bitcoin is not. Though there are altcoins that is considered a good investment but bitcoin is still the most dominant of them all, I do believe they will both progress in the future and investors makes more money.

Bitcoin is a currency, not a bank. Crypto currency can lead the world to a new monetary system based more in a decentralized or almost decentralized system than the full centralization we have today.
Giving better opportunities to all and equal chances of competion, finishing the lobbies and mafious schemes there are today in the world.

The very nature of bitcoin is its decentralization and the main characteristic is its pseudonymity, which it might have to lose once it becomes a central bank. And just because it has been increasing rapidly in price doesn't mean it is stable enough because it is still very much prone to volatility and the market cap is nowhere near that of gold.

Bitcoin and altcoins can be an alternative to government regulated banks so it is a way to store money independent of any nations control. This is one of the major advantages of cryptocurrencies.

In a way, yes, it is like a central bank because majority of exchanges are paired into it with other altcoins.However this will not hold true for a long time because other altcoins have better programs in the future.

Central banks centralize portions of the economy to make it easier to control and regulate. This has a double edged effect. On one hand: it simplifies matters. On the other hand: the centralization can reduce innovation & industry advancement as we've seen many banking industries stagnate and fail to progress or evolve over a span of decades.

Bitcoin being decentralized in theory lends it towards being the opposite of a central bank. However it being self regulated by cryptographic function could eliminate and even outperform "regulation" to a degree which could recommend it as being an international reserve currency with the potential to be more stable and reliable than currencies regulated by people who are prone to bias.

Gregory51gost I wish many bitcoin enthusiast and developers will get to know about this powerful and carefully thought you have posted here. Bitcoin is actually performing the role of regulatory to others coins.

It can also in some sense. You can invest your money and wait for time. Blockchain can on the other can also function as a bank. It can hold many currencies but this is more secured unlike in some banks, so i guess this has high grounds on security more than regular banks.

No, because a central bank lends money to other banks in exchange for an interest, sometimes very low. In ICO, bitcoin is used as the means to buy tokens or altcoins, instead of buying them with fiat money people buy with bitcoin because it´s much simpler and is the main currency in the world of cryptos and that everyone uses. To give an example, it´s as if the tokens were shoes and bitcoin the money with which you buy the shoes.

It would not function as a central bank though. A central bank sets rates and sets how much money or loans as issued. Btc is always an average of 10 minutes to generate a set number of blocks and have a corresponding increase of difficulty.

The only thing that is centralized about bitcoin really is the mining. It is quite possible for the chinese government to taker over the miners in china for their own purposes. In that case we would be subject more of a central bank, but the good news is that hardforks can correct the action and we dont need to capitulate to a centralized mining operation.

I believed that when they are going to build a bank only on a country that fully accepted bitcoin as there one currency a good example there is a country based wallet that they don't need to use any other only wallet also those wallet that no fee on every transaction are being made.