Hello members,
Would appreciate if someone could explain, why different type of coins will not manage good price such as bitcoin in future if someone start investing in it or how does it work. In future if governments start implementin their own fed coins, how will that influence bitcoin, lowing its value or ?
Thank your for your time and replies members.
As far as i can see, cryptocurrency has a bright future indeed. In case governments try to implement them in their financial system, wouldnt they try to manipulate them by controlling and tracking? I read some article that governments are considering making their own fed cryptocurrency, how will that influence bitcoin and others? Just a thought, doing research, im new to cryptocurrency.
Thank your for your time and replies members.
Amazing system.
So, the thing with cryptocurrencies is that it relies on a
trustless, decentralized economy. With bitcoin, or any other true, PoW (proof of work), decentralized currency, you need people to run nodes and mine the coin. This is the only way you can secure the coins transactions, because if someone wanted to "hack" a transaction or do something malicious on the network, then that person would need to be very motivated to do so as well as have some serious computing power behind them.
Side note: this is why PoS (proof of stake) coins will never be as secure as PoW coins.
The feds might
try to attempt to create their own currency; but let's imagine the fed decides it doesn't like how the Internet is bringing political activists together and they want to create their own "nationalized" Internet. Well it wouldn't really work, because the Internet is everlasting and global. If one country shuts down Internet access to the nation and essentially creates a nationalized Intranet to track citizens activities, that would have devastating consequences on the nation alone, but will have not that big of an impact on the rest of the world's Internet because that's just one country down and everyone else can still easily communicate with each other.
The "cat is out of the bag" with cryptocurrencies. You could argue, however, that Bitcoin is already still easily as traceable since it has a very transparent blockchain system, but that's for another debate. However, Bitcoin is a revolutionary concept of a payment system without trusting a third party... and that, in itself, is a very good thing. There are more altcoins out there doing work on improving certain problems Bitcoin currently faces (block size, anonymity, etc. etc.), but as it stands, the Bitcoin network is just too powerful even as it stands today for the Fed to "replicate" and force people to use. Hell, they are still sitting pretty with the whole fiat system that it would be pretty stupid for them to put it on a blockchain for everyone to be able to track and follow..