Topic: Can bitcoin compete with CBDC's? - page 2. (Read 301 times)

That's right, CBDC is just fiat in digital form, Fiat does not compete with bitcoin, so there is no reason to infer that CBDC and bitcoin are competing with each other. I think the purpose of the government creating CBDC is because we are moving into the digital age and everything is moving towards digitization, and using CBDC, the government will control us even better. So I don't think CBDC will compete with bitcoin, the two will go hand in hand to support each other.

Bitcoin is built such that you have complete control of your funds. The philosophy behind Bitcoin is to "Be your own bank" because you are holding the keys to your wallet. CBDC is just the opposite because a third party is now involved in holding your funds. The bank is the third party; Government and Banks work hand in hand. They decide how you use your funds and the amount to use, your funds can even be frozen or denied withdrawal if there is an issue in your document or other issues, so you are not in control of your funds. Simply put, I think CBDC are digital version of fiat, so they are very much controlled by the Government. You are also exposed to inflation and other anomalies that may be present in such country. Basically, Bitcoin have a different philosophy when compared to CBDC. 

It can, it really really can. It's not going to be even similar, it will be something vastly different and people will react to it very differently. I know that people are not entirely sure about what to do when CBDC starts, and how the world will react to it, but we need to realize what it is and why it can't compete.

Why are we in bitcoin and not putting our money in fiat right now? Well, because we believe that bitcoin is better than holding it in fiat. What is CBDC? It's digital fiat, basically the same as fiat, but digital instead of paper. So that means why would people who moved away from fiat to go to bitcoin suddenly want to go to digital fiat instead? Makes no sense.

Bitcoin and CBDC are two different kind of digital assets, so I think they are not directly competing with each other.  Bitcoin being decentralized cryptocurrency often use as an alternative to traditional fiat and store of value while CBDC as a digital version of a country's fiat is seen as a way for central banks to modernize their monetary systems and increase financial inclusion.

As you can see they have different purposes and target different user groups. However, there are a few areas where they could potentially overlap:


Average person may choose CBDC over Bitcoin because it is issued and backed by a central bank but other people might choose Bitcoin over CBDC because of the following reasons:

CBDC is only a digital form of fiat, nothing else. There won't be a change in the currency. It must be balanced by government wealth created through fiat. As a result, Bitcoin won't be threatened or compete with CBDC. Both are entirely separate things. Additionally, CBDC would support Bitcoin by making p2p trading simple. Instead, I don't sense any concern about CBDC. I will welcome it.

You know CBDC is the same thing of fiat, but in digital format, right?

CBDCs aren't a plus for governments and traditional banks against Bitcoin and decentralized crypto in general. The incentive to use Bitcoin is still the same: have control over your own money, transact it boardless anonymously, protect your patrimony on long term against inflation and potential government's seizure, accessibility when working and being paid online.

This is nothing new. Since the launchment of BTC in 2009 we hear these arguments, and they didn't prevent Bitcoin from being successful and hiting new ATHs every few years.

Bitcoin and CBDCs have different properties and characteristics, and they are designed to serve different purposes. Btc is a decentralized, digital currency that is not controlled by any government or institution.

CBDCs, on the other hand, are digital versions of fiat currencies that are issued and controlled by central banks and the government. They are intended to complement, rather than replace, physical cash and bank deposits.

Btc and CBDCs are different, they are not mutually exclusive and they can coexist. So there is no need to compete with each other.

CBDC’s are effectively just a stablecoin with spyware. Your government will use a CBDC to control you, to spy on you. Everything you spend will be monitored, every single cent of income will be visible and open to taxation. The very thought of a CBDC is evil. It’s intrusive, I don’t like it at all.

Of course bitcoin can compete with any potential CBDC. Bitcoin is the exact opposite of a CBDC. Bitcoin is decentralised, it has a capped supply of 21 million. The fiat value of bitcoin is designed to go up forever. Your CBDC has none of these features.

Bitcoin does not need to compete with CBDCs which are worse than Bitcoin. It does not have to join such competition because CBDCs are centralized, not decentralized currency.

With Bitcoin, you have a full decentralization and freedom which you can not find in any CBDC.

CBDCs will have problems with inflation or hyper inflation which is worse than fiat currency in my opinion. With CBDCs, minting new supply is more easily than printing new circulating supply for fiat currency.

[GUIDE] All About Central Bank Digital Currency (CBDC)

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.

CBDC is different from Bitcoin. Bitcoin is not managed by a central server and does not need a central authority or intermediary. A decentralized peer-to-peer payment system that is fully controlled by its users around the world makes Bitcoin very unique in that it gives its users complete control over their money.

CBDC is digital money that is issued and controlled by the central bank, the supply of which can be increased or decreased by the central bank to achieve economic goals. In addition, CBDC will become a representation of digital money as well as a symbol of state sovereignty sovereign currency. Because the systems are completely opposite, Bitcoin and CBDC will never meet and there will be no competition between the two.

No because Bitcoin has different structure than CBDC. CBDC is just a digital dollar and bankers just make it fancy with the use of their so called unique blockchain but it’s fiat that coming from thin air through unli print. While Bitcoin on the other hand is a complete decentralized currency that has limited supply. It can’t be affected by inflation due to to it limited supply and very good in the long run. Bitcoin is backed by PoW while CBDC is backed by politicians word alone.

They are incomparable and Bitcoin is the best in all aspect when it comes normal citizen benefits.

Bitcoin was never meant to compete with anything, that's the thing I think I have never agreed with (when talking about Bitcoin displacing banks or killing PayPal or whatever).

For me, it was always an alternative. A way to pay when other ways don't work. A way to pay person to person. A way to pay when others won't let you.

These are all the three reasons I used Bitcoin, and others I know have. There wasn't an incentive. There was a reason.

but if you research them you will see they dont have what you say
they are "2 layer" networks

a chain of blocks with multisig transactions where central and commercial banks set their reserves

commercial banks then (multisig) their reserves between each other to settle their commercial end payment route of their subnetwork funded reserves

below that they have the commercial banks delegated to police their own customers
in a subnetwork
(imaging the pegging mechanism like blockstream liquid network)
where they only report the suspicious transactions to authorities

and the customer payments between
the commercial bank-customer subnetwork as not a hop& spoke model like the failure of LN but instead its the hub('factory'/watchtower) model

where the hubs(commercial banks) give out inbound balance to customers

its no shocker why certain groups are playing around with certain idea's, where those idea's didnt actually form naturally from crypto guys. it formed from them being part of the corporate bank hyperledger design committees, injecting and influencing suggested proposals to the crypto community. and using crypto as the sand box test of open source coded programmable money
(in short cryptocurrency devs did not invent the buzzword "layer 2")
(in short the banking groups got cheap labour prototypes to emulate.. via crypto development, whilst we got delays and stalls in scaling solutions, while devs 'played possum' of bitcoin. whilst actively sandboxing idea's inspired by the corporate banking world)

There is nothing to compete about here, CBDC is going to be the digital stable FIAT, why compare this with something that's comparable to GOLD? Also Bitcoin is volatile which creates opportunities for newcomers and also keeps the balance in different cycles. Do not expect too much of CBDC because it's just going to be like USDC.

CBDC will support crypto for sure though.

You should ask the opposite question, can CBDC compete with bitcoin? Because bitcoins are created first, and CBDCs are being created. But it doesn't matter who is trying to compete, what matters is that CBDC is not comparable to bitcoin. To me, CBDC is no different from fiat money, it is just a digital version of fiat, and we already know that fiat is not comparable to bitcoin. Not only CBDC, but I believe in the crypto industry, no coin can compete or surpass bitcoin, bitcoin is king and always will be king of crypto.

I totally agree with your opinion, CDBC is a bank project while bitcoin is a decentralized digital token, so we shouldn't compare bitcoin with CDBC, because CDBC has an Explorer or a book that can see everyone's transactions so that it is controlled so every time we make a transaction the government knows where to go of our transactions, of course we are vigilant including myself personally because our account data is tracked to who and where it went.

Not to be cynical about Bitcoin but Bitcoin is king it comes first when you think of a currency, if you browse through the forum thoroughly, you will see this particular question has been asked over again.

Central bank's digital currencies are just an upgrade of fiat currencies.

Bitcoin gives one the power to run its own nodes and transfer it between countries making it borderless, but central bank's currencies can not be transferred in a split seconds. You will have to exchange to another to send to that country.
Asides that looking for a merchant to run this can be quite stressful, with Bitcoin less stress is involved. This should be the last time you think of comparison between Bitcoin and Central Bank Digital Currencies.

banks already had digital payment methods
banks are not competing against bitcoin
banks actually want to invest in bitcoin(see BIS reports for proposals for 2025)
banks actually want to service customers in-house and compete and destroy payment services like visa/mastercard

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?