central banks and Bitcoin - page 5. | Bitcointalksearch.org

iamTom123

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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.

cpfreeplz

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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.

Razick

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Quote from: orions.belt19 on August 17, 2017, 09:01:58 PM

I don't think that Bitcoin would be able to replace fiat money. First of all, Bitcoin is decentralized. This would be hard to control for the government and the central banks. The central bank decides when and how much fiat money they should produce and inject in the monetary system of the country and I don't think that the central bank would be able to produce Bitcoins out of thin air.

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 never thought about it in the way you just said, and it makes a lot of sense. Governments want or need control. However, they can't control Bitcoin, so the idea that fiat will ever disappear, or at least within this century is extremely unlikely.

Most likely, developed nations and anyone with internet in general will gradually adopt to crypto until fiat actually becomes rare.

orions.belt19

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I don't think that Bitcoin would be able to replace fiat money. First of all, Bitcoin is decentralized. This would be hard to control for the government and the central banks. The central bank decides when and how much fiat money they should produce and inject in the monetary system of the country and I don't think that the central bank would be able to produce Bitcoins out of thin air.

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

Nameless27

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Bankers will not just settle on being part of this system but they want to control it. Asking yourself the same question as mine, do you actually believe those who buy bitcoin in the shadow are from banking industry? In no time those greedy banking officials or owners will soon be the one controlling us. It might help for a while but in the long term it might be the one that can affect bitcoin fall.

Yuhee

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Quote from: babarian on August 17, 2017, 07:29:47 PM

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.

Right, I totally agree with your opinion
The central bank will not attack bitcoin like the one we are currently using, so even if the crisis happens bitcoin will not be attacked by the central bank

Well in a way, they have different style of transactions and security and off course opportunity. More people are into btc because it gives opportunity to people who really doesn't have any money without thinking about interest and taxes. Furthermore banks are just affiliation if ever people want to convert btc. Btc is untouchable by any other entities besides the team who holds it and its not easy to conquer a lot of memories or bytes in the internet.

babarian

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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.

Right, I totally agree with your opinion
The central bank will not attack bitcoin like the one we are currently using, so even if the crisis happens bitcoin will not be attacked by the central bank

BitcoinBallerina

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Presale is live!

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

Rahar02

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First thing is bitcoin won't replace fiat currency anytime soon, even though in 50 years later I still doubt about it.
Because govs won't let other currency replace their nation currency, and maybe consider to ban bitcoin if they think it's treat central banks authority, such as happened in Ukraine where miners arrested because there's no any legal regulations about bitcoin : https://news.bitcoin.com/arrests-bitcoin-miners-ukraine-questions-legality/
If bitcoin could replace fiat money, if bitcoin reach certain price and huge market cap which can't easily be manipulated. At that time, bitcoin will bring financial stability obviously, because it's not fluctuate a lot anymore and has higher price than any other currencies.

cellard

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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.

I try to explain to big blockers that bitcoin is better dealt as a store of value that acts as a counter-measure to an ever-inflating money (fiat) but they don't care, and want to turn bitcoin into fiat 2.0, which would make it much less valuable.

The only way bitcoin can be viable as a currency is via second layer solutions like LN, not by destroying the core protocol with big blocks, because that would make it exploitable by attacking governments and global forces.

Big blockers are a disgrace to the network.

HeRetiK

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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?

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.

madu

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Activity: 11

Merit: 325

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?

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