central banks and Bitcoin - page 3. | Bitcointalksearch.org

jvdp

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Quote from: severaldetails on August 24, 2017, 02:13:45 PM

The way I see it is that the central banks controle the fiat currencies.
But they do it to keep economy intact. That is to the benefit of many people.
Bitcoin these days is more and more controled by mining pools. Not even the market, just the pools.
And the pools work only to their own financial benefit.
I am getting more and more concerned about that developement.

Ya some how right. Many miners start to increasing the transaction fees for their own benefit. But I think this will reflect the bitcoin growths. If the bitcoin was wanna to grow on future so.The developer should get into this matter. It's very important too.Miners should consider this and reduce the price of bitcoin.

Cherylstar86

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Quote from: severaldetails on August 24, 2017, 02:13:45 PM

The way I see it is that the central banks controle the fiat currencies.
But they do it to keep economy intact. That is to the benefit of many people.
Bitcoin these days is more and more controled by mining pools. Not even the market, just the pools.
And the pools work only to their own financial benefit.
I am getting more and more concerned about that developement.

That's more serious thing if you are talking about those controlled by the central banks and not the markets. I think it's more speculative than other rumors that I had read before. If their aim if for the benefit for the people, then there's no problem with that matters but if ever it do bring negative effects behind all what is happening with the fluctuations which caused huge drops; well maybe we should be warned before it threatens the investments that we had.

severaldetails

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The way I see it is that the central banks controle the fiat currencies.
But they do it to keep economy intact. That is to the benefit of many people.
Bitcoin these days is more and more controled by mining pools. Not even the market, just the pools.
And the pools work only to their own financial benefit.
I am getting more and more concerned about that developement.

wuvdoll

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Quote from: Lampaster on August 22, 2017, 06:17:08 AM

The activities of the Central Bank has nothing to do with laws of Economics. The Central Bank is a mechanism which allows the government to manually regulate the economy. This leads to presents to regular crises and inflation. Bitcoin is quite another.

Bitcoins and central bank are poles apart. They both have different functions and the purpose you have described of the central bank is pretty correct whereas bitcoins are working as solution to inflation and financial crisis. Bitcoins are providing people with opportunities of earning for themselves without sticking eyes on rude bosses.

amaral1977

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If BTC would be a real currency bing decentralized people would see BTC stabilize itself as it wouldnt be an inflationary currency. The problem is that BTC his becoming very centralized in terms of hash power concentration so i don´t really see it replacing an everyday life currency as it is.

ModGirl

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Quote from: justspare on August 22, 2017, 01:38:33 AM

Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

If you think so or maybe someone told you, then I will have to tell you it’s totally wrong. There is no way Bitcoin is replacing fiat. Fiat will always remain as the main currency, and Bitcoin will also stay as powerful tech stock you can use for investments, making quick transactions, and a lot more.

Exactly, bitcoin will never be replacing fiat money. These two will run in two different streams. They may effect one another but one can never demolish other. As said bitcoins will work in investments, fast online banking etc. but it will not be overcoming fiat business that if so, surely cause many problems.

Capradina

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Quote from: Forbiddenone on August 18, 2017, 09:44:17 PM

Quote from: iram1011 on August 18, 2017, 08:52:56 PM

Quote from: BingoDog on August 18, 2017, 09:49:41 AM

So far central banks polices don't influence on cyptocurrencies market. Some day if cryptocurrencies will be included formaly in financial systems then this will be different. Some central banks have already started to test the blockchain technology adn bitcoin too so that might be the sign they will change their behaviour and attitude. Afterall, the first interest of all banks is pure profit.

The only justifiable aim of various countries to launch their own Cryptocurrency is to reduce the marketcap of Bitcoin or in anyway reduce the dominance of Bitcoin on the market. But that is least to happen. They are indeed scared of the increasing marketcap of cryptocurrencies because they in many way can harm their functioning.

Correct,banks will not allow any competitor which distrupt their economy profit.but as there are various project which are taking initiative to start their own bank system using cryptocurrency and many have issued their card as well.thats a good sign of progress.

Indeed now there are some teams that make a profitable project for most owners of cryptocurrency, because we can get service like a bank. But one thing I do not think this will change the economy of the cryptocurrency or the project is that a system is already in use, so if this is just a transfer without a better innovation and different from its predecessor it will be much different (many enthusiasts will) . Just wait for time and see what happens

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Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

They are controlling it by what means? Deflating the fiat money or inflating it?
That could not happen with bitcoin. They will have to increase the value of every satoshi over and over just to equal the market and that will be chaos if will happen.
I dont think they would want to be a part of something that is decentralized.

faceoff97

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Quote from: orions.belt19 on August 17, 2017, 10:01:58 PM

I don't think that Bitcoin would be able to replace fiat money. First of all, Bitcoin is decentralized.

Fiat money and Bitcoin work very differently, so I don't think that it will replace fiat money as monetary system of a country.

I agree, we don't have to push the use of fiat money. There is no issue on having other form of money as long as it is legal and conforming to national rule. We can both have bitcoin and fiat money at the same time, they can go well alongside. Bitcoin would not mainly cause instability, there are small percent of people are engage with it. And it would take a long time to see majority of the people becoming users of bitcoin.

Lampaster

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The activities of the Central Bank has nothing to do with laws of Economics. The Central Bank is a mechanism which allows the government to manually regulate the economy. This leads to presents to regular crises and inflation. Bitcoin is quite another.

Vaskiy

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Central banks and bitcoin have different applications and both function on different platform. Bitcoin is an separate body that functions without the interference of any other external force. Central Bank has a very structured way that is necessary to have the financial administration to function properly and pave for the economic growth of the country.

yangerer

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Bitcoin provides an excellent opportunity to test the untested hypotheses underlying modern economic monetary policy dogma.

Finally we can see the central banks come head to head with a properly competitive alternative, and the market will decide the winner on merit.

I predict the end of bailouts, much reduced fluctuations in capital markets, and governments being forced into fiscal responsibility in a way not seen for decades.

cotton ball

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Quote from: michkima on August 22, 2017, 02:30:59 AM

Quote from: Kakmakr on August 22, 2017, 02:12:43 AM

Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

Ok, Let's look at how central banks do this. They allow for reckless banking practices to happen < The financial crisis of 2007–2008 > and then they jump in with massive bail-outs with tax payers money to save these banks. How was this beneficial to ordinary citizens?

Bitcoin will never replace governments, but it might serve as a alternative when their currencies and policies fails. People are already using Bitcoin as a safe haven/hedge against bad political decision making. < Venezuela >

Guess that is indeed the case. But really, banks are still important in this world since they play a big role in how finance work. Money cannot be concentrated in every single person, some people need the money while others don't. Those people that don't need the cash right now would need a place to store it and have it loan to other people who need money right now. That is the business of banks and it is necessary.

The central bank is indispensable for the economic benchmark of a country, in which case the Japanese central bank has officially provided development funds for bitcoin in japan, the central bank does not avoid problems such as unfinished debt burden, bitcoin Just another Ways to prosper people without having to Intervened.

michkima

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Quote from: Kakmakr on August 22, 2017, 02:12:43 AM

Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

Ok, Let's look at how central banks do this. They allow for reckless banking practices to happen < The financial crisis of 2007–2008 > and then they jump in with massive bail-outs with tax payers money to save these banks. How was this beneficial to ordinary citizens?

Bitcoin will never replace governments, but it might serve as a alternative when their currencies and policies fails. People are already using Bitcoin as a safe haven/hedge against bad political decision making. < Venezuela >

Guess that is indeed the case. But really, banks are still important in this world since they play a big role in how finance work. Money cannot be concentrated in every single person, some people need the money while others don't. Those people that don't need the cash right now would need a place to store it and have it loan to other people who need money right now. That is the business of banks and it is necessary.

Kakmakr

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Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

Ok, Let's look at how central banks do this. They allow for reckless banking practices to happen < The financial crisis of 2007–2008 > and then they jump in with massive bail-outs with tax payers money to save these banks. How was this beneficial to ordinary citizens?

Bitcoin will never replace governments, but it might serve as a alternative when their currencies and policies fails. People are already using Bitcoin as a safe haven/hedge against bad political decision making. < Venezuela >

iram1011

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Quote from: Hydrogen on August 20, 2017, 07:44:19 PM

Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

There's a huge difference between how politics and finance are supposed to work in theory and how things actually go down in the real world.

The concept of central banks providing stability can be disputed. For example the economic crisis of 2008 was largely caused by banks & their dealings with subprime mortgages rather than prevented by them. Ben Bernanke admitted the federal reserve played a major role in causing the great depression. Banks may be credited with causing economic crisis rather than preventing them. Perhaps from this we can see that there are drawbacks and disadvantages to regulation and centralized monetary policy.

Some investigation and research must be done into the history of banking and central banks to lend a better perspective.

Whenever Banks got greedy or corrupted, such crisis have occurred. But these incidents don't change the fact that central banks are needed to maintain the financial stability in a country and in turn are important in economic development. Right now the way our monetary system runs, I don't see that we will survive without banks.

justspare

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Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

If you think so or maybe someone told you, then I will have to tell you it’s totally wrong. There is no way Bitcoin is replacing fiat. Fiat will always remain as the main currency, and Bitcoin will also stay as powerful tech stock you can use for investments, making quick transactions, and a lot more.

manchester93

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Quote from: madu on August 17, 2017, 06:04:00 PM

If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

BTC won't replace fiat money. Not unless governments themselves are eliminated in some sort of anarcho-capitalist paradise. I don't see that happening anytime soon. The greatest power that governments have is to control the money supply and therefore the stability of the national economy.

Quote from: Hydrogen on August 20, 2017, 07:44:19 PM

The concept of central banks providing stability can be disputed. For example the economic crisis of 2008 was largely caused by banks & their dealings with subprime mortgages rather than prevented by them. Ben Bernanke admitted the federal reserve played a major role in causing the great depression. Banks may be credited with causing economic crisis rather than preventing them.

There is a lot of truth to this. But it's more complex than simple cause-and-effect. The reason that governments and central banks engage in unsustainable monetary policies is to provide stability in the short term, at the expense of stability in the long term (when everything collapses).

Hydrogen

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Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

There's a huge difference between how politics and finance are supposed to work in theory and how things actually go down in the real world.

The concept of central banks providing stability can be disputed. For example the economic crisis of 2008 was largely caused by banks & their dealings with subprime mortgages rather than prevented by them. Ben Bernanke admitted the federal reserve played a major role in causing the great depression. Banks may be credited with causing economic crisis rather than preventing them. Perhaps from this we can see that there are drawbacks and disadvantages to regulation and centralized monetary policy.

Some investigation and research must be done into the history of banking and central banks to lend a better perspective.

pitiflin

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Quote from: madu on August 17, 2017, 06:04:00 PM

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

If bitcoin replaces fiat do you think that the government of that country would keep their hands tied and won't interfere in the financial transaction taking place? And how do you think a country will get its funds from,since banks are the financial backbones of any country? There will exist a government organisation which would be centralized one,and it will control the transactions/ regulate any rule introduced for financial transactions.Don't worry about that,but bitcoin will not replace fiat unless and until some sort of a big miracle takes place,so good luck with all your theories on bitcoin.

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