Bitcoin as Crypto Standard ? | Bitcointalksearch.org

hZti

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

Well that is basically what is happening in El Salvador or other countries where bitcoin was made a legal tender. Still it is so far not enough to make bitcoin stable since the adoption in regards to the world population is not that high still.

TheUltraElite

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?

Backed by bitcoin would ask the question what is bitcoin backed by? The answer is trust and faith by its users. Similarly every other altcoin is backed by trust by its users. There is not need for them to be backed by bitcoin - then bitcoin would essentially control the market which everyone may not like. Although most altcoins dont even get any development backing from its developers some may be there which are genuinely being developed and those would like to have their own ground.

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How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

Being able to pay for services with bitcoin essentially means being able to pay with some sort of crypto, choice of which crypto to be used depends on the user. Each altcoin carries its won advantages in blockchains and fees. That decision rests on the user and hence nothing like bitcoin as a standard has developed yet and IMO not required either.

fiulpro

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Backing already volatile currency with another highly volatile currency?

Lets talk about it, why is there an inherent need for backing something up?
- To make it more stable essentially
Which means that the things that would be suitable for backing should be :
-Non-Volatilte
- Widely accepted
-Government approved ( if you want to add further security)

Therefore backing a crypto currency up with fiat/gold/silver might work but backing it with Bitcoins would be a huge loss, do you know about the usdt? Corelate with it again then you would be able to asses the situation in a better way.

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?

Nope! That will limit the innovation in crypto market and also make useless coins pricey for no reason. Gold reserve was abolished long long ago because it doesn't make sense! Similarly bitcoin standard in crypto market doesn't make sense!

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How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

Again no! Bitcoin is valuable because it is the pioneering cryptocurrency. People have already invested millions of dollars into mining infrastructure around the world. That's how bitcoin derive value. Paying bitcoin for food or regular item is not the only parameter to drive its price or its position as a standard.

fortuner

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Quote from: Nicholas Schaefer on July 24, 2022, 11:32:43 PM

Bitcoin is also the oldest digital currency of all the cryptocurrencies. Many of which use the same blockchain technique.

Yes what you say is very true because bitcoin can never be replaced with other cryptocurrencies, for example ethereum alone will never be able to take a bitcoin position.
Even though bitcoin is currently down, bitcoin is still considered the main coin among other coins that gives a positive value to other altcoins when the price peaks.

Codswallop

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There are many cryptocurrencies that are backed by Bitcoin, and there are many that are not backed by it. Altcoins like Ethereum are growing and are much more than just cryptocurrencies. If Bitcoin is according to what the industry demands down to every detail, then it might become a standard in the market. But other cryptos are also in competition.

Nicholas Schaefer

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Bitcoin is also the oldest digital currency of all the cryptocurrencies. Many of which use the same blockchain technique.

Osteoid

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New crypto enthusiasts are always stating possibilities that bitcoin should be taken as this, bitcoin should be taken as that, etc etc. without applying proper logic. Bitcoin itself was developed to create a safe, secure, and faster blockchain network that can transfer money from banks, without any central authorization. What does this imply? It implies that bitcoin’s value is based on fiat currency.
But people these days imagine and expect bitcoin to overcome inflation, and replace fiat currency, or be taken as an official legal tender worldwide with its own value. Have you thought about how this will be possible? Bitcoin itself does not hold a value of its own, instead its value is measured and backed up by USD (majorly USD, and in other countries by their own currency).
In order for bitcoin to backup other cryptocurrencies, firstly bitcoin needs to have its own value, and not be assessed on USD.

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?
How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

What do you mean by backed by Bitcoin? I don't think that Bitcoin will back cryptocurrencies. We know that altcoins exactly follow the movement of Bitcoin, but it doesn't mean that Bitcoin backs them.
If Bitcoin is accepted by all countries in the world become one of the payment methods this means that Bitcoin has really got its main purpose of creation, mainl,y and being accepted. But, this seems to be difficult because not all countries accept BTC as paymenet.

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?
How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

Remember that bitcoin is a new currency that is not up to twenty years it has been introduced to the world so before it will become a standard currency which every nation will use for buying and the selling of commodity it will be very difficult because some countries currently but not know anything about cryptocurrency and the awareness he still unbelievable and the trustworthy so with that alone I think bitcoin will experience more twenty years ahead before it can be accepted in all the country or all the nation

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?
How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

It doesn't make any sense to create an altcoin backed by Bitcoin. It's like creating paper currency backed by USD. What does it solve? Nothing. Bitcoin already has its own scalability solution which is miles ahead of any altcoin. So-called wrapped Bitcoin has huge problems with security, trust, privacy - there's no good reason to use it instead of the real thing.

Derbind

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Bitcoin itself is not backed by anything and I don’t think crypto currencies need backing of another crypto currency. There are some crypto currencies that are backed by gold but none of them are as popular as Bitcoin. But they are known as stable coins with the backing of physical assets.

Michael White

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This might be because the price of other cryptocurrencies follow the price of bitcoin as it is the first cryptocurrency to exist.

so98nn

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There seems no logic behind this whatsoever. The reason is, all other crypto currencies came in after bitcoin was formed and they all are based on either erc20 and above side chains. Bitcoin itself is flourishing on the blockchain which has on going processing of mining as pow and confirming the transactions. On the other hand erc20 itself is going to go boom on PoS soon so there seems no relationship between the two on technical scale.

Apart from this, on factual basis it may happen but then we will have to discard bitcoins USD value and keep in mind that 1 BTC = 1 BTC so that it can be standardized. Then after you will have to keep in mind that 1 eth = xyz satoshi, USDT = abc satoshi like that.

Just by keeping the vegetables on the shelf with bitcoin price tag mean nothing to it.

Darker45

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?

How I wish all other cryptocurrencies are backed by Bitcoin. Unfortunately, it's not the case. Neither is there a rule which requires them that.

If I may go further, how I wish our fiat is backed by Bitcoin. It effectively prevents the fast devaluation of money. Rather than sky's the limit, which is the current fiat standard today, it would be Bitcoin's the limit. And Bitcoin is indeed limited. Any amount of fiat could be printed or issued for as long as it is backed by Bitcoin.

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How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

If the people find value in Bitcoin, in its features to be exact, then it's enough that it has backing standard. And that already applies today, even if we can hardly pay for goods and services with Bitcoin.

ChiBitCTy

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Yeah this really doesn’t make sense as others have stated. There’s also a reason that most fiat currencies (if not all fiat currencies) are no longer backed by gold. I think there’s still a lot of people who don’t realize this. Bitcoin is a volatile asset itself, so there’s no good reason for making a coin that’s back by another volatile coin.

GreatArkansas

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

(...)
How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

The essence of Bitcoin is a mode of payment that seems will be not focused on here. Although you can say that you can use Bitcoin as an asset for the backed assets.
But it's still difficult for now, especially with the volatility and there are still some people who are not ok with using Bitcoin.
Speaking of altcoins, I don't think they are backed with Bitcoin because what can we only see is correlation, like most of altcoins' price action are following with Bitcoin's.

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Quote from: Ucy on July 19, 2022, 10:23:45 AM

Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?
How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

Technically they are backed by Bitcoin but in parasitic manner except for very few that may be able to stand on their own. If the host dies the parasites cease to exist.

I don't think that at this point there are any altcoins that can stand on their own. If Bitcoin crashed to 0 somehow there wouldn't be any altcoins left standing and I mean it.
What could destroy bitcoin? A world war, a worldwide ban, a working quantum computer ab;e to crack its code, a worldwide EMP attack, a global cataclysm? All those things would also crash altcoins. I can't think of a single thing able to destroy bitcoin that would allow altcoins to remain on the scene.

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Quote from: cogsmachine on July 14, 2022, 09:14:56 AM

Shouldn't all crypto be backed by bitcoin ?
How could a "Bitcoin Standard" emerge? For example, if you could pay for food service etc everywhere with bitcoin, would that be enough to essentially drive bitcoin as a backing standard ?

From my understanding and my observation towards cryptocurrency, if all the cryptocurrencies return to Bitcoin it is very obvious that investment in cryptocurrency will not be competitive any longer, the existence of altcoin into cryptocurrency is what is making cryptocurrency to have more firms because many tokens is being created and also been accepted for cryptocurrency investment so if all these tokens should be eliminated and join bitcoin the investment of cryptocurrency wont have been interested and competitive.

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