central banks and Bitcoin - page 4. | Bitcointalksearch.org

GoodLuck2

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Quote from: Achargeturry78 on August 19, 2017, 01:06:21 AM

Quote from: Indrawan77 on August 19, 2017, 01:00:36 AM

Quote from: madu on August 17, 2017, 05:04:00 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?

That is very correct, so not everything can be decentralized, sometimes we need someone to control so there are no monopoly from other party, and we need central bank to be centralized and control the global financial, so the inflation rate could be decrease and the country stability can be established, that is why fiat is very important for a country

This have a point. I know some coin are built for charity and donations. maybe they can help about this matter. we all know that world is really not balance but although we know it, many people are really want to help for those who are in need.

Yeah, I also seen many good people who wish to help poor by their personal bitcoin, some of them want to build school for poor, some of them want to make orphanage and some want to build hospitals. I think we also help those kind of people who work for society. As you said the world is not balanced but GOD created some men to make this world balanced.

Achargeturry78

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Just follow the rules

Quote from: Indrawan77 on August 19, 2017, 01:00:36 AM

Quote from: madu on August 17, 2017, 05:04:00 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?

That is very correct, so not everything can be decentralized, sometimes we need someone to control so there are no monopoly from other party, and we need central bank to be centralized and control the global financial, so the inflation rate could be decrease and the country stability can be established, that is why fiat is very important for a country

This have a point. I know some coin are built for charity and donations. maybe they can help about this matter. we all know that world is really not balance but although we know it, many people are really want to help for those who are in need.

xypos

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Quote from: madu on August 17, 2017, 05:04:00 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?

I believe that a lot of the issues that arise with fiat currency is purely made by the central bank itself.

The biggest long term instability in my opinion with fiat currencies issued by a central bank is inflation, which in the end makes fiat currencies completely worthless. No single fiat currency has survived for more than 200-300 years, maximum. The average lifespan is significantly less than that.

Only a decentralized currency, such as bitcoin can combat inflation because government cannot abuse its power of the printing press.

Plus, is it really worth it to bail out big banks and stuff with basically taxpayer dollars? This just makes banks less careful with their investment choice knowing that they will get bailed out by the government.

Indrawan77

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Quote from: madu on August 17, 2017, 05:04:00 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?

That is very correct, so not everything can be decentralized, sometimes we need someone to control so there are no monopoly from other party, and we need central bank to be centralized and control the global financial, so the inflation rate could be decrease and the country stability can be established, that is why fiat is very important for a country

Japinat

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Quote from: cpfreeplz on August 17, 2017, 09:44:37 PM

Think about this: central banks decide to lend at certain rates based on how the economy is doing. Bitcoins are a central bank and will prevent any need for some third party to randomly decide to change rates. It's a truly free and open market.

This is absolutely true, bitcoin is not controlled by anyone whom we might afraid they will be driven by that greed, we the users and supporters of bitcoin are dictating how it should perform so if it's successful, we will also succeed. The central bank somehow has the capacity to regulate us since bitcoin can be considered as part of the financial system that needs to complied with the rules to mitigate the risk of illegal activities especially the laundering of funds.

yadi cihuy

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Monetary policy depends on a variety of reasons .. usually it benefits certain projects and weakens others. And I think bitcoin will not replace fiat money. Bitcoin will stand without a bank. And this is very profitable for its owner .. in contrast to the bitcoin fiat money is not influenced by the monetary crisis .. bitcoin is only influenced by supply and demand .. if a lot of demand then bitcoin prices will rise .. fiat money is influenced by the world economy and monetary crisis Which led to a drop in currency prices

Kaller

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Quote from: cpfreeplz on August 17, 2017, 09:44:37 PM

Think about this: central banks decide to lend at certain rates based on how the economy is doing. Bitcoins are a central bank and will prevent any need for some third party to randomly decide to change rates. It's a truly free and open market.

And banks profit from it too, don't forget.
Then they increase money supply, and continue the vicious cycle.
Bitcoin really is amazing in that it lets us control our own money.

Forbiddenone

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Quote from: iram1011 on August 18, 2017, 07:52:56 PM

Quote from: BingoDog on August 18, 2017, 08:49:41 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.

iram1011

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Quote from: BingoDog on August 18, 2017, 08:49:41 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.

BingoDog

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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.

warrior333

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In order for bitcoin not provoked the global financial crisis, it has the mechanism of limiting production. All will be produced only 21 million coins. Banks always have clients but bitcoin will be more profitable and therefore, its price will rise.

btcjocan

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Quote from: mackenzied on August 18, 2017, 03:45:08 AM

Quote from: BitcoinBallerina on August 17, 2017, 07:24:52 PM

Central banks will not attack Bitcoin a lot until it gets a lot bigger threat.

Without any threat from bitcoin, it does not cause any effect to banks. Conversely, bitcoin supports development for banks, because in countries where bitcoin accepts, banks make transactions and gain profits.

Digital currency has a great advantages in terms of profit exchanges online which made the banks also gains wealthy profit, and it’s a blessing that in my country nowadays banks online were now exchanging digital bitcoin currency to fiat cash money. Central bank is an independent banking sector, so as with bitcoin also had it's own advantage with regards to sustainability.

cellard

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Quote from: iamTom123 on August 17, 2017, 11:00:23 PM

Quote from: HeRetiK on August 17, 2017, 06:29:28 PM

Quote from: madu on August 17, 2017, 05:04:00 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?

Monetary policies can fail or be tainted by conflicts of interests. Decentralized protocols are predictable and uncorruptable. Apart from that, no worries. Bitcoin will never replace fiat money and doesn't need to. Some form of inflationary fiat will always be required to enable economic growth. Look at Bitcoin as a store of value and as a hedge against failing monetary policies that just so happens to be usable as a currency as well.

We have the same view on fiat money and cryptocurrency. Fiat money will always exist because not all people can adopt modern technology. Bitcoin and fiat money can be existing alongside each other peacefully and there is no need to replace one another. Realistically, we are still converting our Bitcoin to the local money and it can take a lot of years before there will be a mainstream mass for any cryptocurrency.

Seriously speaking, I don't really understand why we have to push for the fiat money to go. We should let all forms of money exist as long as they are legal tender of a given place and there are people who are using it. It is quite a very big ambition to try to convert all people to get away from fiat money and just use cryptocurrency. We have to remember that the stores we can see down in the isles are not yet accepting Bitcoin and as of now even if they do I will never use my Bitcoin in buying anything because I am speculating that it will further grow in value.

I disagree. You claim that fiat money will always exist because" not all people can adopt modern technology."

Right now all you need is a cheap phone that can do SMS and you are already on the blockchain, being able to send and recieve transactions. And now we got the blockstream satellites so the coverage is pretty much global.

Are you saying that in 100 years, even the poorest spots on earth will not have support for BTC transactions? because I think you are wrong.

Over time, all societies on earth will have access to the blockchain. There are already cheap SMS Nokia phones all over africa, imagine in 2100 or something. The overall technological level always goes up.

iram1011

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One thing that everyone should understand is that Bitcoin or any cryptocurrency is not going to replace any national currency. Otherwise it would lead to economic breakdown for a country. A highly volatile currency is not what is needed to run a country.

Quote from: mackenzied on August 18, 2017, 03:45:08 AM

Quote from: BitcoinBallerina on August 17, 2017, 07:24:52 PM

Central banks will not attack Bitcoin a lot until it gets a lot bigger threat.

Without any threat from bitcoin, it does not cause any effect to banks. Conversely, bitcoin supports development for banks, because in countries where bitcoin accepts, banks make transactions and gain profits.

There is indeed a threat to banks from Bitcoin. Bitcoin is like having your own bank and managing your own money whereas banks act as a middleman and earn profit out of this practice. Thus, Bitcoin certainly not going to kill banks but still possess a threat at some level.

Carlsen

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Quote from: madu on August 17, 2017, 05:04:00 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?

I think that is exactly the point why no country should invent bitcoin as their only legal currency.
Bitcoins value is completely determined by the market.
And the market is ruled by businesses.
What businesses care about is their own business. Although they should have some social responsibility, the people way too often play an unimportant ruole in their plans.
A governmant should focus mainly on the well beeing of its citizens. I really assume many of them try.
To manage that you have to be able to influence the market. So you need a fiat that is controlled.

mackenzied

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Quote from: BitcoinBallerina on August 17, 2017, 07:24:52 PM

Central banks will not attack Bitcoin a lot until it gets a lot bigger threat.

Without any threat from bitcoin, it does not cause any effect to banks. Conversely, bitcoin supports development for banks, because in countries where bitcoin accepts, banks make transactions and gain profits.

HeRetiK

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Quote from: iamTom123 on August 17, 2017, 11:00:23 PM

Seriously speaking, I don't really understand why we have to push for the fiat money to go. We should let all forms of money exist as long as they are legal tender of a given place and there are people who are using it. It is quite a very big ambition to try to convert all people to get away from fiat money and just use cryptocurrency. We have to remember that the stores we can see down in the isles are not yet accepting Bitcoin and as of now even if they do I will never use my Bitcoin in buying anything because I am speculating that it will further grow in value.

I think most Bitcoiners that took a closer look into the matter are aware that fully replacing fiat with cryptocurrency is not all that viable (in its current form). Nonetheless one can still dream that one day Bitcoin will be as ubiquitous as the Dollar or the Euro. That's all there is to it. English didn't replace local languages, yet it is understood pretty much everywhere. Bitcoin could play a similar role for currencies.

the rise

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Quote from: helloicon on August 18, 2017, 12:28:58 AM

Well I have never thought about Bitcoins in this way... You have a point there. That's right, central banks tend to have control on most of money flux. But when bitcoins become prevalent, central banks will be likely to take control on criptocurrencies too through policies or regulation.

The point would be very beneficial if bitcoin is within the reach of central bank transactions, if we object to taxes and so on, we still have many virtual market exchanges as the best alternative, I think this would be a good conjunction, better apply bitcoin in shared medium than stand alone and take the fight.

helloicon

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Well I have never thought about Bitcoins in this way... You have a point there. That's right, central banks tend to have control on most of money flux. But when bitcoins become prevalent, central banks will be likely to take control on criptocurrencies too through policies or regulation.

Beerwizzard

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Quote from: iamTom123 on August 17, 2017, 11:00:23 PM

We have the same view on fiat money and cryptocurrency. Fiat money will always exist because not all people can adopt modern technology. Bitcoin and fiat money can be existing alongside each other peacefully and there is no need to replace one another. Realistically, we are still converting ou

Honestly it seems possible if some country (a smaller one for begining) will guarantee its currency in BTC so it will be more stable and people won't have to adopt for any serious changes. I've heare that in venesuela people already pay with pepes that have the BTC price.

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