Crypto-currencies issued by the States. How will they affect bitcoin?

squatter

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Quote from: Don Pedro Dinero on March 07, 2018, 05:43:05 AM

They won't much, I suppose, as they are shitty-fiat currencies.

Do you think laypeople understand this? I don't.

There's been a lot of conflation among "digital currencies", "virtual currencies" and "cryptocurrencies." Most dumbed-down explanations and media coverage emphasize the intangible and virtual nature of coins and their lack of backing, rather than conveying why the technology works and why it has economic value.

Quote from: Don Pedro Dinero on March 07, 2018, 05:43:05 AM

I think people who know a little bit about why bitcoin was created, and its features, like decentralization and 21 million cap, don't care about state cryptos.

I agree with that. But I also think most people are plebs who don't know what decentralization is or why a deflationary supply matters.

To address the OP: States will issue digital currencies to take the luster away from real cryptocurrencies. They'll exploit ignorance about the technology to get people to ignore decentralized coins. To some extent, they will succeed, but there's no way they can actually stop the Bitcoin train. Legit cryptocurrencies will continue to flourish.

Nadirbil

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You're all so carried away by cryptocurrencies that you don't see simple things. Venezuela with the help of its cryptocurrency is trying to get out of under US sanctions.

Sergey190785

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crypto-currencies that are issued by states depend on the country's GDP. And bitcoin does not depend on any country, so it has value all over the world

Hydrogen

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Quote from: Nadirbil on March 07, 2018, 05:38:59 AM

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

I would guess there will be a campaign made to bury the ideas of algorithmically regulated supply introduced by bitcoin. There will also be an attempt made to spam the public with anti limited supply rhetoric in terms of the total number of coins which can be mined in a crypto currency. The divide between ethereum with its infinite/variable supply and crypto currencies like bitcoin or litecoin which have a predetermined and limited supply will become greater as time passes.

They'll likely try to find ways to endorse crypto currencies with infinite supply while limiting those with limited supply to create a false precedent that all crypto currency is defined by a capacity to be "printed without limit" the way ethereum has.

Decentralization and arguments which support it being a good thing likewise will probably be discouraged.

Whether or not we'll have alternate media which is skeptical or questions the views propagated by the mainstream is anyone's guess.

Walrus1

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Quote from: Nadirbil on March 07, 2018, 05:38:59 AM

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

Venezuela is falling apart. The people use btc but the government wants its own backed by oil. That government could fall apart, it means nothing. Since Chavez Venezia has been suffering

xWolfx

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They won't affect in anything. At first, the people who believed in Bitcoin and made it grow was people who strongly believe in the technology and the decentralized way of doing transactions from now on.

The "Cryptocurrencies" issues by the authoritarian regimes are a desperate try to take down this amazing Bitcoin decentralized property, we can now see how desperate they are getting.

Doesn't matter what they do, if we the people continue to support Bitcoin with our time and holding, we will have complete freedom and decentralized currency one day, for everyday life.

mkhjhv

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Quote from: bug.lady on March 07, 2018, 05:49:57 AM

Quote from: Nadirbil on March 07, 2018, 05:38:59 AM

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

Ask yourself what would be the incentive to move a country-issued fiat to blockchain. One of the incentives would be that blockchain-based currency is less anonymous than cash. It would be easier to track its users than it is with cash.

Obviously, it would be centralized, it is issued by the governament after all. I think you can forget the "anonymous and decentralized" part.

I am not sure if it will affect bitcoin in any way. Already, there are a lot of altcoins. Bitcoin doesn't seem to care

It does not matter if the coin is concentrated or decentralized, as long as bitcoin or cryptocurrencies are advertised, which is enough for bitcoin to require more people to know about Bitcoin and make it more liquid.

liuqi

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Quote from: Nadirbil on March 07, 2018, 05:38:59 AM

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

Bitcoin is always rule the crypto market. Because you are thinking the negatives of Bitcoin but at the same time Russia president announce the good news Bitcoin is legalized in July 18 so definitely Bitcoin is reach in all over the world. First you should check the positive news in Bitcoin then only you believe this coin.

pooya87

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Quote from: YuginKadoya on March 07, 2018, 08:35:57 AM

Wow! I didn't know that the government is making their own Cryptocurrencies, Where do you get that kind of idea that they can make their own decentralized currency? But the thing is they can really do that but the start up for that Currency will be in zero and will be a head start for them, they can not make their Crypto an equal value with their fiat currency, And they can not just move from a regular currency to a fiat currency that simple.

it is not new, there have been multiple countries that have been working on their own cryptocurrency and Venezuela is only one of them. also the cryptocurrency they are going to make is not going to be decentralized at all.
it will probably be equal to their fiat currency value at some point, at least that is what i think because otherwise what is the point of making such currency?!

Ozero

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Quote from: Nadirbil on March 07, 2018, 05:38:59 AM

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

We do not yet have sufficient experience with regard to the existence of state crypto-currencies. I think the national state crypto-alaets will have both certain advantages and disadvantages. The advantages include stability of such a crypto currency, its support by the state, and therefore the absence of large volatility. Since it will be regulated, it will be less exposed to the risk of fraud and depreciation, a sharp drop in the rate will be virtually eliminated. Perhaps, such a crypto currency people will trust more. The shortcomings include the lack of decentralization and anonymity, this type of crypto currency will be used mainly only in this country, as citizens living in other countries will not need it. Such a crypto currency can not bring a significant income precisely because of its regulatory nature.

Gamebitcoin

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Every country can start their own cryptocurrency. These cryptocurrencies will be pegged to their own currencies. Governments will market them as the next big thing. They will assure the people that they have made better version of the currency based on Bitcoins.

Alas these currencies will still be controlled by central authorities. They will manipulate the supply of the cryptocurrency.

Bitcoin works not because it is a cryptocurrency. It is just a fad term. Bitcoin works because it is decentralised. It is bound by written rules in its code. It works because a group of powerful people cannot decide the terms of Bitcoin. Unless there is mass majority, Bitcoin cannot be changed.

Nobody owns Bitcoins. People own Bitcoins. Nobody controls Bitcoins. People control Bitcoins.

Government can launch n number of cryptocurrencies. They cannot beat Bitcoin because Bitcoins have strong fundamentals.

alyssa85

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Quote from: bug.lady on March 07, 2018, 05:49:57 AM

Ask yourself what would be the incentive to move a country-issued fiat to blockchain. One of the incentives would be that blockchain-based currency is less anonymous than cash. It would be easier to track its users than it is with cash.

Obviously, it would be centralized, it is issued by the governament after all. I think you can forget the "anonymous and decentralized" part.

I am not sure if it will affect bitcoin in any way. Already, there are a lot of altcoins. Bitcoin doesn't seem to care

Also, cash costs a lot to print and issue, so they may wish to save money on that. And if they are a small country without a decent payment processor and are being ripped off by VISA, they might want a crypto to help local retailers.

It's hard to say whether these country cryptos will be successful or not - it depends on whether you trust the country or not.

Indrawan77

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It wont affect much, there will be not a lot of people interest in the coin that can be controlled by the government, the crypto currencies is famous because of the decentralisation, if the government took that then it will be the same with fiat, nobody will want to used it, so no matter how many countries try to launched their coin, in the end it will be a failure

YuginKadoya

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Wow! I didn't know that the government is making their own Cryptocurrencies, Where do you get that kind of idea that they can make their own decentralized currency? But the thing is they can really do that but the start up for that Currency will be in zero and will be a head start for them, they can not make their Crypto an equal value with their fiat currency, And they can not just move from a regular currency to a fiat currency that simple.

VitKoyn

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Quote from: Nadirbil on March 07, 2018, 05:38:59 AM

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

When a country or government creates their own cryptocurrency it means they don't want the original concept of cryptocurrencies being decentralized currency, so it means that it will be centralized so that they can have the control. Of course it will have an effect to Bitcoin in terms of adoption in specific country where it will be released because government will surely promote and support a cryptocurrency that they issued but it will not affect the price of Bitcoin to go down because a centralized coins will not attract investors, and we have seen some countries that issued their own cryptocurrency but didn't get any success like Bitcoin has.

tomahawk9

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Centralized state-backed "cryptocurrencies" pegged to fiat money won't have any major impact on Bitcoin. First, they won't be direct competitors because Bitcoin is a cryptocurrency, while cryptos issued by the govt will be just digital currencies but not cryptocurrencies. Second, like other users have said, they will be completely centralized (central banks will most likely have control over those digital currencies), which is going against the fundamentals of Bitcoin. So, no, "cryptos" issued by the government won't affect Bitcoin whatsoever.

Red-Apple

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something that is not decentralized will not even fall under the same category as bitcoin to want to start and affect it. so whenever a country creates their own cryptocurrency which will obviously be centralized, it will NOT have any effect on bitcoin.

in some countries like India, creating such altcoins may lead to the government banning bitcoin or at least tightening regulations around it but in the end it will have no effect on it, people will realize this big difference.

alani123

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I don't think we're ever going to worry about the USA issuing a cryptocurrency. M2 is where it's at with the states and I don't thin they'd want to deviate from that at all. It'd go against the status quo and the currenct system can't support such.

JerryJam

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No government in the world is trying hard to influence the cryptocurrency. Mistakenly consider that it has no future. But because of its decentralization, it is difficult to do so .But in some countries, leverage still exists. For example, Bangladesh provides for criminal liability for cryptocurrency transactions. And it can threaten with imprisonment till 12 years.States at the legislative level can prohibit on-line exchangers.

cynical

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They wont affect bitcoin in the long run because they will be different centralised currencies based on the same technology as decentralised currencies.
The reasons people are using bitcoin will remain the same.

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