I believe only in an anarchy society model bitcoin could kill central banks. But since we live in a centralized society the central authority will always exist and rule all its elements, including the economical life of the country through the central bank. Even crypto businesses aren't disposed to *kill* central banks and the traditional economical model, otherwise we wouldn't see an increasement in interest for stable coins, backed by fiat.
In fact, central banks are going to be integrated in crypto universe and there is some chance they are going to dominate it on long run, overcoming the first decentralization purpose brought up by bitcoin philosophy.
Topic: Can Bitcoins kill Central Banks? - page 8. (Read 1759 times)
If we are going to take consideration on what's best for a certain country, regardless if it is possible that bitcoin may take down central banks or not, it would be best if central banks would remain dominant over bitcoin. If ever bitcoin managed to collapse central banks and take over its place, a lot of detrimental effects towards the nations economy will surely follow afterwards. Also, central banks are capable enough of restricting cryptocurrency use or decreasing it since the government is at the top of their heads that's why I think there's no chance bitcoin will be able to eliminate central banks anytime soon.
The loss of control is essentially equal to the death of the state. In addition, given the factor of influence of monopolized miners on the volatility / rate of bitcoin, such a "currency" can simply kill the economy from deliberate or unintentional actions of monopolistic miners.
And finally, the use of a deflationary currency in the economy, from the point of view of economic competitive advantages, loses to the deflationary model.
I believe governments can use this to their advantage as well, but they seem to be not doing something like that. Contact the biggest miners, get them to a room, talk to them about how much they can save, like get over 10 billion dollars of bitcoin saved, pay their costs, then when they have 10 billion dollars worth of bitcoin, tell them to all dump them at the very same time all over the crypto markets, just keep dumping more and more in top 10 exchanges constantly until the price is very low, then cover their loss from what the start price was and what the end price will be.And finally, the use of a deflationary currency in the economy, from the point of view of economic competitive advantages, loses to the deflationary model.
This will be at most few billion dollars, big governments call it a half a day worth cost, USA printed over 5 trillion dollars just in the last year, few billion dollars is nothing. So, we can't just come out and say "can bitcoin kill central banks", if central banks wanted it, they would have killed bitcoin in a day.
And what is the point of such steps? Banks can simply prohibit operations with exchange accounts, thereby effectively stopping the operation of converting crypto to fiat. This means that the majority of crypto users will not be able to make purchases for fiat. There are very few points of sale for crypto now, and they definitely do not cover even 1% of the needs of the population.
Ninado no spending, no negotiation. Just blocking accounts. Or they will make an even more interesting option - withdrawal to fiat will be possible through trusted banks, which will preemptively remove tax from the withdrawn amount
Well, the question about the Chinese miners, who are monopolists today - do you think they will actually negotiate, where the result will be a drop in the price of the cue ball? Moreover, this is China - a country with a rather specific policy, and its own interests
I believe bitcoin and fiat both got their own ways and you can not say bitcoin is going to kill central banks and fiat currencies because bitcoin has some benefits and fiat has some other benefits and you ca not compare these two. Regarding the central banks, some people withdraw their money from the banks and buy bitcoin to save themselves from the inflection rate and sure the governments will try to do anything to make people hold their money in banks because the decentralization of bitcoin can make everything harder for the banks and governments because they can not control anything here.
If enough people use bitcoin for their daily transactions, then central banks with their fiat currencies will lose their power over the economy. Soon after that people will be flocking in to buy cryptocurrencies because FOMO will be too much for them to take in. Banks will collapse as they won't have any relevance and fight if the enemy is literally decentralized currency. This will also boost the price of bitcoin, but at the same time will amp the transaction time and fee. So there are pros and cons in this kind of scenario coming into fruition.
indeed there are many advantages of bitcoin compared to central banks. But we need to remember that the central bank is controlled by the state, so I don't think it's that easy to tear down bitcoin, we can see until now where the fame of bitcoin has soared, but the government doesn't seem to be going to legalize it globally
If enough people use bitcoin for their daily transactions, then central banks with their fiat currencies will lose their power over the economy. Soon after that people will be flocking in to buy cryptocurrencies because FOMO will be too much for them to take in. Banks will collapse as they won't have any relevance and fight if the enemy is literally decentralized currency. This will also boost the price of bitcoin, but at the same time will amp the transaction time and fee. So there are pros and cons in this kind of scenario coming into fruition.
The loss of control is essentially equal to the death of the state. In addition, given the factor of influence of monopolized miners on the volatility / rate of bitcoin, such a "currency" can simply kill the economy from deliberate or unintentional actions of monopolistic miners.
And finally, the use of a deflationary currency in the economy, from the point of view of economic competitive advantages, loses to the deflationary model.
I believe governments can use this to their advantage as well, but they seem to be not doing something like that. Contact the biggest miners, get them to a room, talk to them about how much they can save, like get over 10 billion dollars of bitcoin saved, pay their costs, then when they have 10 billion dollars worth of bitcoin, tell them to all dump them at the very same time all over the crypto markets, just keep dumping more and more in top 10 exchanges constantly until the price is very low, then cover their loss from what the start price was and what the end price will be.And finally, the use of a deflationary currency in the economy, from the point of view of economic competitive advantages, loses to the deflationary model.
This will be at most few billion dollars, big governments call it a half a day worth cost, USA printed over 5 trillion dollars just in the last year, few billion dollars is nothing. So, we can't just come out and say "can bitcoin kill central banks", if central banks wanted it, they would have killed bitcoin in a day.
The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.
It was a old question and answer will be no. Because bank process is needed in a day to day life.Even if you get a vehicle loan, it was easily happened by the mean of bank.When US and developed country agreed on a concept of bitcoin to replace the bank. Surely it take a decade time to happen.Banking system had a huge process and everything should replaced by bitcoin.
there is a misconception about Bitcoin and the central bank. they always bumped into them both as if they were enemies. We must straighten out an understanding like this, that both are important foundations in running the world economy. Banks and Bitcoin have their respective functions and benefits, both for people who are not familiar with Bitcoin, or for us bitcoin users. We live side by side and don't like to be pitted against each other by the OP speculation above.
I don't think so. Because, when people are finding their comfort level more with bitcoin payment system then they will slowly stop using traditional banking system. This will happen in decades and not immediately, I mean. So, there are plenty of chances are there for traditional banking system to disappear from other day to day life. I'm just referring the potential of bitcoin to support our day-to-day life without traditional bank. Yeah, there will be no point of continuing with traditional banking when we are having all solutions for our banking needs with bitcoin ecosystem.
Why though? Why would bitcoin kill central banks? What would benefit bitcoin, and what would the society benefit from no more central banks? Do you really know what they are suppose to do and what they are there for?
You are right, there is a misconception about Bitcoin and the central bank. they always bumped into them both as if they were enemies. We must straighten out an understanding like this, that both are important foundations in running the world economy. Banks and Bitcoin have their respective functions and benefits, both for people who are not familiar with Bitcoin, or for us bitcoin users. We live side by side and don't like to be pitted against each other by the OP speculation above.
Maybe it is better if bitcoin stay like this, for investment purpose or maybe what people use beside to replace fiat. Because Central Banks itself is really big power and can control anything, me who amateur maybe only think don't let they make bitcoin banned and we just not disrupt them if not any problem happened to bitcoin itself.
and if as a world currency for me it is very ineffective, considering the stability of Bitcoin will be threatened. and it is true that it is sufficient as an investment. let fiat money and bitcoin side by side with each other.
Bitcoin and central bank are never related in philosophy and tech wise. Bitcoin has no central authority while central controls paper money that's highly inflated as time pass by.
Central action may effect bitcoin value on short term but will become negligible as more and more people knows the real meaning and value of bitcoin.
One thing is unique about bitcoin, inflation is never an antigrowth and its acceptable worldwide. Bitcoin will always be the people's choice.
Central action may effect bitcoin value on short term but will become negligible as more and more people knows the real meaning and value of bitcoin.
One thing is unique about bitcoin, inflation is never an antigrowth and its acceptable worldwide. Bitcoin will always be the people's choice.
Bitcoin is a virtual currency that uses peer-to-peer technology to operate with no central authority or institutions like Banks. By its very own definition, Bitcoin sounds well positioned to kill central banks. Could it?
I don't think it's gonna happen. Tbh bitcoin doesn't need to kill any government's institutions to prove its existence. Bitcoin can't be treat like fiat money due to its high transaction fee and delay transfer time. It will only worth it if we transfer high amount of money via bitcoin. So, instead of killing central bank, I am imagine if someday in the future the government admit bitcoin as a digital asset and have clear regulations in government's side in any countries.
The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.
This answer pretty much sums up what I think. There's no chance governments are going to relinquish control over the monetary system. And as for bitcoin replacing it unwillingly, the economy was much choppier and less predictable on the gold standard, so it's really unlikely people will want to return to all the economic insecurity that accompanies a deflationary currency.
The loss of control is essentially equal to the death of the state. In addition, given the factor of influence of monopolized miners on the volatility / rate of bitcoin, such a "currency" can simply kill the economy from deliberate or unintentional actions of monopolistic miners.
And finally, the use of a deflationary currency in the economy, from the point of view of economic competitive advantages, loses to the deflationary model.
Bitcoin will not kill the Central Banks, rather I think they will adopt bitcoin. Perhaps not so soon but in due course when they see no other way out than to join or we will continue to see it as we have done now.
Centralization has had so much power that they cannot bend to decentralization. There are also the great elites that have their great tentacles and love absolute control.
Centralization has had so much power that they cannot bend to decentralization. There are also the great elites that have their great tentacles and love absolute control.
Nah, central banks won't adopt bitcoin. Central banks are literally charged with controlling the money supply. They would never adopt a currency they had no control over. The closest you'll get is a central bank-backed crypto, and even that is unlikely. It's more likely they'll just digitize fiat.
Bitcoin won't kill central banks. It makes a transition in the way banks operate. For now the process involved with banking is very big and it is a headache. Myself stating from personal experience. When everything tied to the blockchain things can be made easier and faster.
A small experience of mine. My uncle died around six months back and he has got some deposits on the bank. He hasn't added a nominee to the account. Now to withdraw the funds my aunt is going to the Bank for the past three months. Several procedures were involved and it hasn't got withdrawn yet. These things need to change, when we show the proper authorised identity the bank should be ready to process it in a day.
A small experience of mine. My uncle died around six months back and he has got some deposits on the bank. He hasn't added a nominee to the account. Now to withdraw the funds my aunt is going to the Bank for the past three months. Several procedures were involved and it hasn't got withdrawn yet. These things need to change, when we show the proper authorised identity the bank should be ready to process it in a day.
Bitcoin will not kill the Central Banks, rather I think they will adopt bitcoin. Perhaps not so soon but in due course when they see no other way out than to join or we will continue to see it as we have done now.
Centralization has had so much power that they cannot bend to decentralization. There are also the great elites that have their great tentacles and love absolute control.
Centralization has had so much power that they cannot bend to decentralization. There are also the great elites that have their great tentacles and love absolute control.
I think Bitcoin can, but only if governments let it. But they won't, because governments are addicted to regulations. They think nothing that doesn't require regulations works. To them, if you can't control something, it means it's dangerous. But for the longest time, human beings have been afraid of what they don't understand. If only the government would delve deeper and understand how Bitcoin works and how they can use it to benefit the people's advantage, I bet their misplaced fear will go away.
NO but central banks can kill Bitcoin instantly if all the country will agree to ban bitcoin. Central bank is the one who setup rules and regulations with regards to fiat currency and that’s where the funds of the country goes to so I don’t think bitcoin can do this thing. We have to accept that fiat currency will stay and bitcoin can’t replace that old system, we should be more thankful if you can still own Bitcoin and let’s not push this market to kill central banks.
Big NO. It's easily comprehendible with just a use of common sense. There ain't even a need for much effort. The wealthy always have control over almost everything. And following that logic, means banks control what happens along with the governments. I even see bitcoin being legalized in the future but also having big taxes in return for its users and holders. If not, the governments amd banks will proceed on making a similar thing but widely regulated so they do not lose control over everyone. That's just how things work in this world.
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