Can bitcoin compete with CBDC's? | Bitcointalksearch.org

livingfree

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Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

Actually, there are too many. You'll be unattached to the centralization that CBDC has. While CBDCs focus is all about being a payment to the local where it's being implemented and created.

Bitcoin can be used in all countries, globally. There's no need for a country's government to be part of it because it is as-is. No central authority and can't be frozen by any governing body that implements the CBDC.

Abiky

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Quote from: Xal0lex on January 30, 2023, 03:37:15 PM

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

People are avoiding CBDCs because they already have cash (paper money). But when that is removed from circulation, you can bet they will switch to Bitcoin for the preservation of privacy. As you've said before, CBDCs will enable governments and central banks to have a full scope over your financial activity. There will be zero privacy and less freedom over the way you handle your money. The only ones that will benefit from the new digital cash system are none other than banks and governments alike.

Bitcoin won't directly compete with CBDCs (due to the way it was designed), but at least it will prove to be an alternative for those who need it the most. Things would've been worse if Satoshi didn't invent Bitcoin in the first place. The world is quickly shifting to the digital era, so I wouldn't be surprised if CBDCs take over the world within 1-2 decades from now. Just my opinion

Psynthax

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both has their own niche, I'd say CBDC will instead compete with stablecoins in general where it seems they have somewhat similar utilities, Bitcoin and other altcoins like ethereum will always have their own different niche that is because of their volatile nature and fluctuation that could be beneficial for investments, so I guess comparing both is like futile attempt of comparing something that isn't even should be compared with each other.

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Quote from: Xal0lex on January 30, 2023, 03:37:15 PM

Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

CBDC were just an advanced form of fiat. Just because it is getting connected through technology it doesn't mean CBDC is good and functions in a better way. Bitcoin is different from CBDC and we can't have a comparison. When it comes to working CBDC is the centralized fiat which gives direct control to the government. To keep the people out of reach from the cryptomarket, countries have begun to develop their own CBDC.

Xal0lex

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Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

TheGreatPython

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Quote from: CryptoYar on January 30, 2023, 06:58:34 AM

The CBDC's nothing to do with bitcoin.

These are two different things, bitcoin gives you financial freedom, and it can not be controlled by any central authority/government. While CBDCs are controlled by the central banks no matter even if they are created on blockchain but still they are state-owned currency and they can mint more whenever they want as they usually do with paper currency.

I think they can do something. Remember they are created by the people who are against Bitcoin. People behind them can encourage the public to use their own creation and not Bitcoin. Much more if they ban BTC on their country. CBDC and Bitcoin do also have their own similarity and that is both runs in the blockchain. The only main difference is that one is decentralized and the other is centralized.

Even though CBDC has their own advantages and that is they are stable and safe, I mean safe because they are regulated. BTC can still compete with them because BTC do also has its own charm and that is its volatile nature, where people can use it as an asset for trading or investing other than using it as a currency and most of all, it is safe because we control our own money.

CryptoYar

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The CBDC's nothing to do with bitcoin.

These are two different things, bitcoin gives you financial freedom, and it can not be controlled by any central authority/government. While CBDCs are controlled by the central banks no matter even if they are created on blockchain but still they are state-owned currency and they can mint more whenever they want as they usually do with paper currency.

Abiky

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Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

Bitcoin can never compete with CBDCs. That's because it's decentralized, whereas CBDCs are not. Comparing both is like comparing apples vs oranges. Most people will prefer a CBDC over BTC because of its stability. Not only that, but a CBDC has the full backing/support of the government. Bitcoin will only remain as an alternative currency for those who want to "escape the system". I'm fine with that as long as it works as intended.

Who needs to beat digital Fiat (CBDC) when Bitcoin can succeed on its own? A sovereign currency like Bitcoin cannot be stopped no matter what. It enables people to be their own bank. Given that both governments and central banks are powerful entities, it seems to me that BTC will live alongside CBDCs for generations. Who knows what's next in store for the pioneer cryptocurrency? Just my opinion

danherbias07

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Wrong comparison. CBDC should be compared with money transfer applications or fiat wallet services and not against Bitcoin.
Bitcoin paired with Ethereum, that is when a big question will come out on which is better between the two. Or BNB.
No competition between CBDC and Bitcoin because Bitcoin is not defined by most users as a currency yet, it's an asset and they will keep it as long as they want just like how my Mama keeps her gold in her stash.
And I doubt CBDC will be supported in a sweep, when people realized what they are up to, there will be doubts about why they should use it rather than just using plain cash.

rhomelmabini

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Quote from: aidoyoh on January 27, 2023, 04:10:18 PM

I guess a better question to ask is could bitcoin ever replace CBDC's? (bitcoin outcompetes CBDC's)

Same thing OP, you won't be able to compare or make some replacements since these two aren't the same at all when it comes to what they aim. I don't think these huge bankers will ever make it so easy for Bitcoin to replace their God (fiat). I don't think Bitcoin will compete with it, they're probably goes hand in hand to exist.

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Quote from: worle1bm on January 26, 2023, 02:56:52 AM

It's actually opposite as government are trying to compete with Bitcoin through introducing these CDBC and giving people digital payment access but it's the same like any other digital payment but the only thing they add on is Blockchain technology but if you say about competing with btc then there's no chance at all as we are comparing centralised token with decentralised coin so what do you think about it?

It can hardly be said that governments are trying to compete with bitcoin, and therefore issue their own CBDCs. By issuing CBDCs, governments are simply improving the efficiency of their banking system's cashless payments. They have long appreciated the benefits of blockchain technology, and therefore use it to improve the performance of their national currencies.
As for the possible competition between CBDC and Bitcoin, of course, they cannot compete as they are completely different financial assets. The competition between them is the same as between fiat and cryptocurrency in general.

nakamura12

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It doesn't matter of what kind of currency it is either in digital form or not it is still the same as it is regulated by the government unlike with Bitcoin where no one regulated the Bitcoin. Bitcoin can compete with cbdc as it cannot stop people from using Bitcoin. Both have different purpose or goal to achieve. As I have explained that CBDC is regulated by rhe government since it is pegged by the fiat currency or in short it's digital form while Bitcoin is all about being decentralized and also let people decide to be anonymous or not.

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Quote from: yazher on January 27, 2023, 06:30:50 AM

It's the same with the current fiat where they only make it digital and of course, the banks have control over your money once again. they just put some sugar coating with it but in reality, they wanted to fool people to use support their CBDC instead of bitcoins. From now on, we expect tight competition between these two and there will be lots of negative news against bitcoin again due to the fact they wanted to turn off the light of the future of Bitcoin as the mean of payment.

Government will always have control over money. Even if we are talking about crypto, they won't have direct control of crypto itself, but they would have the control over fiat which we usually turn that into. Meaning, if you have bitcoin and it goes up and you are richer now, they still control what you can do as a rich person, because they are the ones deciding the law.

This is why CBDC doesn't matter, because we are already at a place where governments have some control over it and Bitcoin is still awesome and still better than anything and we will still keep using that. There is no fear of CBDC at all, that will not change anything in crypto world, maybe stablecoins should be worried a bit, not us.

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Just having Bitcoin as an alternative is cool for most of us, and bitcoin and CBDC are both two separate networks of financial transaction and asset management, Bitcoin have multiple features that are absent in CBDC and with that BTC vs CBDC is no equal and among the many differences is:
-Bitcoin is a decentralized currency with its own blockchain free from alterations from any part such that is evident in altcoins.
-Bitcoin serves as a trans border currency! Bitcoin is also an Asset were CBDC is just a currency peg to a fiat so ultimately CBDC is a centralized altcoin.

aidoyoh

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I guess a better question to ask is could bitcoin ever replace CBDC's? (bitcoin outcompetes CBDC's)

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Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?..

Since CBDC is one of the forms of money, it will be in circulation on a par with cash and non-cash types of money. And you will be forced to use it, since you will not be able to make calculations in bitcoin everywhere. In this case, such competition will not have any significant size.

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Quote from: Fivestar4everMVP on January 26, 2023, 11:01:01 AM

Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

The emergence of CBDC will not stop people from using bitcoin, this is because CBDC as we all know is no different from our traditional fiat currency, the only difference is that CBDC is the digitalized form of it,
- CBDC is still prone to centralized control like it is with our normal physical fiat currency
- CBDC is still prone to inflation, which can lead to loss of purchasing power, like it currently is with our physical fiat currency.
- CBDC can be frozen right there in your wallet by the Federal government or central banks they controls it, without your consent or permission, like it is with our physical fiat currency.
- with CBDC, your every transaction is monitored, you have no financial privacy of any kind because at all time, the central bank know how much you have in your wallet.
- with CBDC, when you send money to other parties, your identity is known to the central Banks, and so is the identity of whom ever you send money to.
- with CBDC, you can be denied access to your money any time and day, and there is nothing you can do about it if they refuse to grant you access to your money, who are you going to report to?.

But Bitcoin, Is the direct opposite of all that CBDC represent and stand for,
- Decentralized is bitcoin,
- Freedom is bitcoin,
- Privacy is bitcoin..

What more can one possibly ask for? Bitcoin has provided us with all that we need to live our lives free from other people controlling our finances lives, the ball is now in your court to either accept or reject.

Very good words, but if you read a little analytics and see what people and large banks made it so that bitcoin was traded on all major world exchanges and became very famous, it becomes clear that the same people are trying to participate in the launch of CBDC. Given the necessary situation in the world, these people can very quickly ban bitcoin mining and ban it on all exchanges. So far, such a situation has not occurred, but this scenario is possible.

Blitzboy

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I don't think so. People are losing their faith in the government, especially people in the USA. In my country, it is hard to find someone who fully supports the government and its centralized system. The current monetary system has existed for many years and flaws have been found everywhere. Suspicious transactions, centralization, printing, manipulating, inflation, etc have made many people tired of it. If you ask people on this forum, most of the people will choose bitcoin over cbdc because of the freedom and decentralization

So, IMO, CBDC will not stop bitcoin, it only make cryptocurrency become even famous

yazher

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Quote from: aidoyoh on January 26, 2023, 12:38:34 AM

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

It's the same with the current fiat where they only make it digital and of course, the banks have control over your money once again. they just put some sugar coating with it but in reality, they wanted to fool people to use support their CBDC instead of bitcoins. From now on, we expect tight competition between these two and there will be lots of negative news against bitcoin again due to the fact they wanted to turn off the light of the future of Bitcoin as the mean of payment.

Wexnident

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Does it even need to in the first place? It'll get used if people want to use it, it won't if they don't want to, simple as that. Just the fact that Bitcoin is decentralized and CBDC is centralized already negates any sort of possible competition between the two imo, and CBDC is literally just fiat but digital (which fiat can honestly do as well). Let them do their thing, not exactly sure what CBDC's goal is (afaik it's just to digitalize fiat payments), but I'm pretty sure it's not anywhere close to wanting to fight with Bitcoin, or any crypto for that matter.

Topic: Can bitcoin compete with CBDC's? (Read 300 times)