Topic: On the future of Cryptocurrencies (Read 260 times)

Unfortunately the digital yuan is just the reason why they are banning everything else, because they want people to actually be in love with digital yuan but also they want people to not have any other option to handle neither, so you would be forced to use digital yuan and nothing else. Even owning USDT or BUSD or anything like that could become very punishable, like a huge fine and even maybe jail, we are talking about China here, these are the same people who murder another race just because they want to, so I am sure they can ban whatever they want as well, that way they will force whole china to use digital yuan and not crypto as much as they want.

In another nation things would not be the same, start a digital dollar in USA and nobody would care, you can't even properly ban it there but it is perfectly legal anyway (other cryptos) so only in china this idea could work and that is with forced situation.

does that mean the banks will adopt the same system?
i heard other countries will also digitize currencies. if they only use part of the system and not copy completely, of course it cannot be called the same

You are absolutely right, although at the moment many seek to earn, generate profits with any cryptocurrency by trading or investing, I am sure that in a few years what they will look for the most is the best currency to have privacy and anonymity, because seeing that most of the things they ask KYC, nobody likes to see how much money each one has moved, especially that the information will be held by governments and third parties such as banks.

I am sure that Monero will shine even more, it is one of the currencies that will survive by default, in terms of privacy, more critical coins are also good like Zcash, among others, but the history and especially the commercial part dominates a lot. plus Monero, which is also one of the favorite coins of many to do mining.

I wouldn't be so sure about that... The digital yuan is, basically, a little upgraded fiat. If China was into blockchain technology they wouldn't enforce bans on trading and who knows, maybe they'll even go as far as prohibiting mining activity (though I hope they realize the financial consequences).

The real reason for all this is gaining even more power and depriving people of privacy. The yuan, digital or not, will be backed by the government and they will have the opportunity to track every single money transfer, and the commercial banks will be the ones that distribute the coins to customers.
Simply no point in the blockchain for them.

Indeed, no one can know what cryptocurrencies will look like in the future, since until now no one can answer exactly who created BTC and for what. But if you guess on the coffee grounds, then we can assume that cryptocurrencies are either an experiment carried out with the aim of switching to a new financial model in the future, or it is a planned operation to withdraw cash as current to solve a problem in the international financial system associated with the US dollar. All these are assumptions, it is likely that cryptocurrencies will continue to exist in the future.

I do not agree with that. For one simple reason as well; centralization. If a blockchain made by a government is still centralized that means there is not going to be any competition for bitcoin, the reason why people like bitcoin is the fact that nobody could print more and give it to rich people, that is what is going on with the fiat world, right now governments print more and more money and give it to companies so that they can fire thousands of people while paying their CEO's tens of millions of dollars and that is just not an okay thing to do, it hurts the world as a whole and it is never going to recover as long as this keeps up.

It means we are talking about something that is not going to change with governments starting their own digital currency, they can do that as much as they want and they will never compete with bitcoin for me.

This a long article to read but I tried my best glancing through but why would we have this "A world where selling cryptocurrency would be a last resort, like selling grandma's gold watch". I don't see this in the future that this would be the last thing to set in for.

I do have the same POV with the blockchain technology but not with cryptocurrencies but dont get me wrong on this. I do hold some cryptocurrencies but some day, some countries might adopt the blockchain technology and implement their own currency with it. China is definitely going to launch their Digital Yuan somewhere in the future and probably might use some of the blockchain technology

To put it simple, cryptocurrencies might change the world economy but not in a way that we all dreamed of. Most of us in this forum definitely want bitcoin to take off and mass adopted but its probably only blockchain that is going to be adopted by the economy system

I would probably give it 10 or 15 more years and a lot of coins will probably be abandoned and by that time, there should be a 10 coin that will survive because they either have a good use case and they become what bitcoin is during its ealry stages, I would agree that a lot of privacy oriented coin is going to dominate since it is a privilege to be anonymous in this space.

I think the future of cryptocurrencies is promising, but the only thing is that it is most likely that many cryptocurrencies, many projects, even those with the best technology, will die, in an eventual downturn of the economy only the strongest cryptocurrencies will survive, obviously BTC and ETH, so it could be in the top 10 of CMC, but mostly I think Monero will be on that list, because it represents an excellent coin for privacy and anonymity.

I emphasize privacy and anonymity because it is already being very difficult to preserve such a right, so much so that for anything that requires KYC, in the not too distant future, what people will look for the most is not to track them and this is where they Coins like Monero can survive, but most cryptocurrencies can be short-lived, of course that's my way of looking at this deflationary economy.

There are bitcoin core developers so I don't think that we need to have satoshi to have the scalability of bitcoin plus, I think that satoshi has already covered that part before he vanished from the public eye.

Expecting this to be the case is unrealistic. For one, the volatility of bitcoin makes the risk of borrowing against it extremely high. If the price falls steeply, you'll be required to put up more collateral or your coins will be liquidated.  And we've all seen how frequently bitcoin undergoes steep drops.  Also, to compensate the risk, the interest rate you pay is likely not going to be competitive with fiat loans.  And lastly, expecting bitcoin to only go up in the long run enough to profit off borrowing against the value is a foolish expectation. There's never been an asset in the history of the world with such properties; it breaks the laws of economics.  In short, this scenario acts like there's no risk, and it couldn't be further from the case.

Banks will love to enter this deal and I guess you didn't get the point. Joe is putting his 2 BTC worth coins to get 1 BTC worth of coins and if the price of BTC drops by 50% or more, the bank will ask Joe to either submit more BTC under the bank as collateral or they will liquid his coins and cover his loan. If you have taken a loan ever in real life, you should know that is the basic rule of collateral.

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The difference between proof of income and assets is that the bank approves proof of income because they consider the individual has a steady income and is able to pay the loan. If you show them assets and ask for a loan then the assets need undertaking because if you just show them Bitcoins and get the loan without giving them the control of your coins, then you can easily sell Bitcoins while still taking the loan.

The banks cannot undertake jobs because they cannot work in your place hence they approve loan when they have the confirmation that the individual is able to repay the loan through his monthly salary.

What the price of bitcoin does doesn't really matter in this regard. Why? Because bank is getting 50k but also getting stablecoins from Joe as payment, if he doesn't pay up then they will not only take his coins but also will be able to put a seizure on him as well, basically take his things, literally anything they find at his house suddenly becomes banks.

So that is why it is still valid, hell even without the bitcoins it is valid, because that is what they do, if he has 50k in bitcoins and can show that as proof of income or value, he could get a loan without giving that bitcoin. I can take a loan, I show nothing of worth now, and the only difference is I am doing it on fiat instead of crypto but as soon as I get that loan I can turn it to crypto if I want to. All of these are basically the reason why we can have this type of deal in the future.

Banks will not enter these deals, so what will happen if I locked my currencies in the bank and the price continues to drop, then the bank will lose.
Building on the assumption that the price will continue to rise is unrealistic.
Since we are talking about new technology, we will not go back to using traditional models such as banks. Rather, there may be portals that decentralize currencies and use smart contracts between different blockchains. Then the need for cash may be less than now.

I am positive that if bitcoin weren't to be successful now, at least it will spark a new generation of cryptocurrencies with better use-cases and economical applications besides just being a boring store of value. We can't really expect updates on the current bitcoin we have right now unless Satoshi finally gets his ass up and works on bitcoin's scalability, which is of course nigh-impossible. So at the very least, we can hope for a better future for cryptocurrencies.

Unfortunately, it is not possible to predict what will happen in the distant future. but that way in my prediction. The current banking system will change, but to think that this system is completely eliminated; it causes 100 questions on my mind 

And surprise, look what happened now in the markets...
Let's assume you took that loan one month ago in April at 60k and you were sure the bull run will never end, a flash crash today bought the price under 30k on bitfinex, even with a 2x collateral you would get liquidated in a loan on USD.
The price spiked back to 40k but for the loan owner it wouldn't have mattered anymore, he basically deposited 120k worth of USD and ended up with 60k.
And the companies are asking you to increase your collateral, what are you going to do, cut losses or put more and more on the table like in a poker match?

Yeah for banks it might be pretty neat, they always have the value in $ at their disposal and they will not care anymore if you're out of work or your home value is going down or you die, but for the one taking the loan, this is one huge gamble I would never risk-taking. I rather have my bitcoins in my pocket and pay a USD loan at a few percentages higher interest rates and keep those coins safe in my wallet, sell only as much as I need to cover one monthly payment to all with one swipe.


And exactly this is happening now, some companies are telling people to over collateralize their loans next time..
By how much? 1000%? If people would have that much in their pockets they wouldn't be looking for such a tiny loan anymore, they would simply sell 10% of their stake and be done with it. You have 3millions in BTC and you take a loan for a house worth 300k while depositing 50 BTC on a platform? Hell no!

It's everywhere because the method of Banks now is the same method cryptocurrency endorse now via their changes, i laughed when i heard that cryptocurrency fees is better than normal bank fees, see irrespective the amount of fiat you want to take from bank is not up to the charges of crypto, bank can not take up to one (1) dollars via their transaction while cryptocurrency transaction take three to six (3-6) dollars before confirmation. So the difference is clear.

People who have money will spend it and who doesn't have can't send it unless they sell something. Bitcoin is just a money which has its own intrinsic value but we can't compare the bitcoin with Gold since we never asked why fiat money does have value when it is just made of paper and no real case other than being a medium of exchange. Bitcoin is a peer to peer medium of exchange which eliminates the need of banks while making transactions.

Well, what we have today is kind of adoption which is for investment purpose but it may lead to the adoption of being used as currency when everyone have the bitcoin just like having fiat money nowadays.