Nationals currencies backed by btc hashing power or on bitcoin as a second layer

hugeblack

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Quote from: wonderchaff on April 19, 2019, 11:26:18 AM

I can imagine that the new monetary system will be built on bitcoin. I can imagine how people use atomic swaps to exchange between national currencies .

Governments tend to lack transparency in a lot of money-related matters, so countries' reliance on Blockchain (cryptocurrency) as a technology based on transparency will not happen. You can see people or institutions but we will not see countries.

Blockchain technology will be important in civil and economic aspects based on finance and civil companies but will not be a substitute for the current financial system.

Pursuer

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maybe in another 10 years that bitcoin became a lot bigger than it is today and was adopted more to reach a stable state then we can think about doing something like that but until then as long as bitcoin has a very small market and a highly volatile price, it can not be used as a "backing currency for national currencies" because it will ruin the economy of that country if price is about to go 500% up in a year and 85% down in the next.

additionally, bitcoin is not yet capable of handling large number of transactions even with lightning network added since the on-chain capacity is not enough for that kind of huge adoption that you are suggesting.

rahmatullah9305

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here's a definition of the term: Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Although Bitcoin is not governed by national government or law in the traditional sense (like the US dollar in the United States), the technical properties of BTC like the supply is governed by the network of Bitcoin-operators (miners) who agree to use the same algorithm.

nara1892

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in my opinion bitcoin in the future will get a stable and very expensive price, used in various countries and become an international currency replacing usdollar, transfer money between countries is very cheap / no cost, easy and fast

lyks15

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In issue of replacing fiat money by bitcoin it is impossible but I am believing that bitcoin can support fiat money as an alternative of money. And I imagine that people will still choose a bitcoin as a investment rather than gold or even a bank investment. And on that people will already give their full trust in bitcoin. So everyone and the whole globe will embrace the crypto industry.

jak3

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I do believe that bitcoin does have a lot of potentials to rise even higher, but I do not believe that bitcoin is going to be the reason for our future development projects. bitcoin is just an idea which opened many more possibilities and we can evolve it even more if we can build something new because even bitcoin has lots of flaws because it's just a payment method not made completely for public care. Maybe we can use artificial intelligence to make something which can be beyond human capabilities.

Nadziratel

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Quote from: wonderchaff on April 19, 2019, 11:26:18 AM

What do you think about this idea ? I mean backed by btc hashing power like komodo. National currencies will be like second layer on bitcoin. Imagine a crisis coming, banks have lost people's faith, nations will have to build a new monetary system on something new, something safe, something that is rare and against inflation. I can imagine that the new monetary system will be built on bitcoin. I can imagine how people use atomic swaps to exchange between national currencies . Bitcoin will be a store of value. When people want to save money they will put them into bitcoin. The reason will be halving, scarcity and increased demand.

If this will be truth, future will be amazing .

How do you imagine bitcoin in the future ?

I do not think that it is possible, that the whole world requires that you agree on BTC at the same time and at the same conditions!!!

Beerwizzard

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Quote from: wonderchaff on April 19, 2019, 12:16:07 PM

What decentralised network has more hashing power than btc ? what are you talking about don't make sense.

If BTC is the only major decentralized network it doesn't mean that it could economically back fiat currencies.

Quote from: wonderchaff on April 19, 2019, 12:16:07 PM

how weak ? what do you mean that ?

From the national point of view rates of their currency should be stable and at the same time this currency should have liquidity. For now BTC have none of those features and nothing tells us that it would ever get them. This is why BTC is too weak.

veleten

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Quote from: wonderchaff on April 19, 2019, 11:26:18 AM

What do you think about this idea ? I mean backed by btc hashing power like komodo. National currencies will be like second layer on bitcoin. Imagine a crisis coming, banks have lost people's faith, nations will have to build a new monetary system on something new, something safe, something that is rare and against inflation. I can imagine that the new monetary system will be built on bitcoin. I can imagine how people use atomic swaps to exchange between national currencies . Bitcoin will be a store of value. When people want to save money they will put them into bitcoin. The reason will be halving, scarcity and increased demand.

If this will be truth, future will be amazing .

How do you imagine bitcoin in the future ?

the whole idea of the currencies is that they are ... not national
we think that a certain country issues currency and it belongs to the country itself etc.
in reality what happens is that Central bank of every and each country of the world issues currencies while
the governments borrow the currencies and use them and the money supply and the rates are controlled by the Central banks
to try and create a currency backed by mining or any other means other than through the Central banking mafia system(like Venezuela or Lybia ) means to
get an instant war or a revolution going

okala

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Yes that is why bitcoin/cryptocurrency is use as the secondary currency of any country because when the supply of faint currency will fall short the digital currency will carry from.there and balance any economic crisis that want to rise in the financial system. The bank need to adopt cryptocurrency no matter how volatile it is.

vv181

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It would be a complete utopian if that kind of scenario happens, the government has failed to control the economic stability, and they want to migrate to Bitcoin a decentralized currency that surely beyond their control to save the days? Hell no. I believe in the mind of the government side it will make the situation worse despite their lack of knowledge about the subject, IMO.

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Quote from: dothebeats on April 19, 2019, 12:28:33 PM

One thing and one thing only: governments wouldn't allow this. No matter how intense people's desire for this to come to fruition, of course governments and banks simply wouldn't allow this knowing that they don't have total control over bitcoin. If debt continues to grow and things started to go out of hand, perhaps they'd just write-off debts or make even more money and create even more debt, until such time that they couldn't take it anymore that they'll have to resort into hostilities once more. Bitcoin's deflationary status defeats the point of fiat being inflationary, and in no way would governments and banks would want to deal eith things they can't control at will.

Bitcoin can exist with fiat, but never will it be integrated on financial systems to aid a country's economy. Perhaps as a payment scheme but not something over-the-top to replace fiat currencies.

Honestly, it would be tough to predict an outcome from a situation like the one op mentioned. The people could revolt against the government and overthrow them or various different outcomes are possible.

What op said could actually happen in such extreme situations, but the chances are slim nonetheless.

dothebeats

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One thing and one thing only: governments wouldn't allow this. No matter how intense people's desire for this to come to fruition, of course governments and banks simply wouldn't allow this knowing that they don't have total control over bitcoin. If debt continues to grow and things started to go out of hand, perhaps they'd just write-off debts or make even more money and create even more debt, until such time that they couldn't take it anymore that they'll have to resort into hostilities once more. Bitcoin's deflationary status defeats the point of fiat being inflationary, and in no way would governments and banks would want to deal eith things they can't control at will.

Bitcoin can exist with fiat, but never will it be integrated on financial systems to aid a country's economy. Perhaps as a payment scheme but not something over-the-top to replace fiat currencies.

wonderchaff

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Quote from: Beerwizzard on April 19, 2019, 12:03:52 PM

Those things are pretty unlikely to happen. Being backed by Bitcoin means that with every fiat transaction BTC will still remain somewhere in the national storage and this transaction won't influence the demand in BTC and crypto market in general. At the same time we need BTC to have a larger trade volume and MC to be able to represent at least something outside crypto market. BTC is too weak to back national currencies and nothing tells us that it would ever become strong enough.

What decentralised network has more hashing power than btc ? what are you talking about don't make sense.

Quote

BTC is too weak to back national currencies and nothing tells us that it would ever become strong enough

how weak ? what do you mean that ?

Beerwizzard

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Those things are pretty unlikely to happen. Being backed by Bitcoin means that with every fiat transaction BTC will still remain somewhere in the national storage and this transaction won't influence the demand in BTC and crypto market in general. At the same time we need BTC to have a larger trade volume and MC to be able to represent at least something outside crypto market. BTC is too weak to back national currencies and nothing tells us that it would ever become strong enough.

Ailmand

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Quote from: wonderchaff on April 19, 2019, 11:26:18 AM

What do you think about this idea ? I mean backed by btc hashing power like komodo. National currencies will be like second layer on bitcoin. Imagine a crisis coming, banks have lost people's faith, nations will have to build a new monetary system on something new, something safe, something that is rare and against inflation. I can imagine that the new monetary system will be built on bitcoin. I can imagine how people use atomic swaps to exchange between national currencies . Bitcoin will be a store of value. When people want to save money they will put them into bitcoin. The reason will be halving, scarcity and increased demand.

If this will be truth, future will be amazing .

How do you imagine bitcoin in the future ?

I agree, what I really think is that bitcoin or cryptocurrency will be used as an alternative for money same level as fiat, I am not really against fiat since both of them has their own unique characteristics and convenience. Imagine using block chain technology to transact world wide, business transactions, transferring of funds, and keeping track of records will really be convenient. Let's hope that bitcoin can be fully utilized in the future and accepted by the mass.

wonderchaff

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What do you think about this idea ? I mean backed by btc hashing power like komodo. National currencies will be like second layer on bitcoin. Imagine a crisis coming, banks have lost people's faith, nations will have to build a new monetary system on something new, something safe, something that is rare and against inflation. I can imagine that the new monetary system will be built on bitcoin. I can imagine how people use atomic swaps to exchange between national currencies . Bitcoin will be a store of value. When people want to save money they will put them into bitcoin. The reason will be halving, scarcity and increased demand.

If this will be truth, future will be amazing .

How do you imagine bitcoin in the future ?

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