Topic: What if governments make Bitcoin centralized? - page 3. (Read 1084 times)
I don’t think anything such is happening anytime soon because people who trade and invest in cryptocurrencies won’t be okay with it. What I think is that the government might come up with its centralized currency just to compete with the ones that are doing good in the market.
No government will be interested in mining bitcoin and making it centralized. The prime reason behind that is almost 90% of bitcoin already has been mined. There is no point for diving in for the rest of the 10% for any government.
Have you ever thought about Bitcoin becoming centralized someday? The ever-growing mainstream adoption of Bitcoin worldwide will only lead us closer to such scenario. To our surprise, El Salvador became the first country to adopt Bitcoin as legal tender. The more popular the cryptocurrency becomes, the more countries will be tempted to follow El Salvador's footsteps. Imagine governments making their own mining facilities, or even buying pre-established mining companies in order to gain a piece of the pie. If they manage to control more than 51% of Bitcoin's hashrate, the cryptocurrency will effectively become centralized. That, and the fact that they already control centralized exchanges is a very alarming situation for the future of Bitcoin.
Of course, the only way governments worldwide will be able to control 51% of Bitcoin's hashrate is if they unanimously agree on using Bitcoin is a "One World Currency". This may all sound crazy, but we cannot ignore it from happening in the future.
What are your thoughts? Will Bitcoin be able to remain decentralized for the foreseeable future? Or not? What do you think will happen if governments fully embrace Bitcoin as the replacement of Fiat? Your input will be greatly appreciated. Thanks.
Of course, the only way governments worldwide will be able to control 51% of Bitcoin's hashrate is if they unanimously agree on using Bitcoin is a "One World Currency". This may all sound crazy, but we cannot ignore it from happening in the future.
What are your thoughts? Will Bitcoin be able to remain decentralized for the foreseeable future? Or not? What do you think will happen if governments fully embrace Bitcoin as the replacement of Fiat? Your input will be greatly appreciated. Thanks.
Good thing that bitcoin is decentralized already and there's no way they could make it centralized by cheating or hoarding coins, it would totally make no sense even if they wanted to, bitcoin had far started more a decade ago, government would take action at large as late as today.
Take for example China, we all knew that they're trying to control cryptocurrencies or atleast make them an overseer or middleman about the transactions, but look at China now, they have given up already and took a legal action to ban bitcoin across mainland China.
And I don't even trust that move by the Chinese government. Do you really think they don't possess any Bitcoin? I just can't believe that. China is a big player in literally any important game all around the world and just think about the idea that they gobbled up loads of Bitcoin when it was between $500 and $5000. 200k BTC at $5000 is just a billion USD. That's pocket money for them. Now think about the idea that they started way earlier than that. There is a real possibility that they own enough Bitcoin to certainly not miss out on the incredible potential it has financially and perhaps even geopolitically.
You couldnt really trust up on any decisions that they would make and of course they would do actions that they would benefit them out and wont really be tending to go
to the path on which they do seems that it will really be a disadvantage to them.
Making bitcoin centralized? We know it is technically impossible thats why they do focus on platforms that is attached to it.
The terms centralized/decentralized is also not either or. Could the government make Bitcoin more centralized than it is now? I guess so because governments could also acquire mining hardware and run specialized facilities, but I don't think they would do that. By now the best position a government could be in is if they already own a huge amount of Bitcoin. That is what I am saying about China. Even if they banned it, they are only in a bad position for now if they don't own any Bitcoin.
Government can't control the bitcoin network, but they can still control you with regulation. See now, the government has managed to control the majority of bitcoin users by making regulation on KYC compliance on a centralized exchange for all users. Anyone who uses this exchange service then they must comply with the rule. They don't create a centralized bitcoin network like bank, but they can regulate bitcoin users living in their jurisdiction. This happen in most countries and mine is no exception.
That's certainly true, mate. Regulations can certainly limit Bitcoin's mainstream adoption. Governments might not be able to control the network in its entirety, but they can prevent people from using it. What's concerning is that big players (mainly exchanges) are amassing large amounts of Bitcoin. If this keeps up, only the wealthy will own most of the coins on the network, effectively leaving the "little guy" out of the system. The risk of centralization will always be there, but it's up to the community to keep Bitcoin as decentralized as possible.
Knowing that the code is open source, it's easy enough to create a new cryptocurrency in case the main Bitcoin blockchain becomes compromised. A change in the PoW algorithm will surely render centralization efforts futile. I'd be intrigued to know how Bitcoin will look like in the future as it continues to grow in popularity. Hopefully it'll remain as decentralized as it is right now, for people to enjoy true financial freedom. Just my thoughts
I do not see that happening in the future. Bitcoin can not be centralized. No amount of regulation can make it centralized.
Techinically speaking then this wont really be possible because structure of Bitcoin itself in talks of codes and other aspects then theres no way that it could becentralized nor be altered or changed and they would already been trying to do this every since bitcoin had become bigger because anything decentralized
is really out of their preference or liking.
They can centralized platforms which is the only way for its users to comply on whats been asked due to regulation thing.
But the funny thing is that the regulations they create are only for their own benefit. For example, if they implement a KYC policy to find out who the user from the address on the exchange is, but on the other hand they forget to set policies such as an integrated complaint service for those who are exposed to scams. So what is the use of KYC in the public interest? just bullshit in the end right?
Yes, it is a bad side that seems to be hidden from the government all this time. The government will not be responsible for any cases involving users who suffer losses, but if it occurs on a listed exchange then there may be action from the relevant authorities to resolve it. Example it OJK. BTC as One World Currency Why would they even think of that in the first place? Each country will always prioritize their own national interest and will continue to protect their own currency. Hard to think they will ever unite just to control Bitcoin when they cannot do it to fiat for decades/centuries. Of course, there is a slim chance but that would probably take an alien invasion.
Why would they even think of that in the first place? Each country will always prioritize their own national interest and will continue to protect their own currency. Hard to think they will ever unite just to control Bitcoin when they cannot do it to fiat for decades/centuries. Of course, there is a slim chance but that would probably take an alien invasion.put your tin hat on:
https://www.newswars.com/great-reset-klaus-schwab-offering-tyranny-courses-to-politicians/
If government can make bitcoin centralized to the world, it will improve a lot of things in the world economy. But with 100% sure government cannot make bitcoin centralized because bitcoin is a digital currency which is not control by any government officials in the world. Even though it is accepted to be centralized in the world, which country will control it,other countries will not agree for one country to be the one controlling centralized price in the world.
Many countries are still avoiding bitcoin because is a decentralized currency which no body know when it will start pumping and when it will start dumping in the community. Some countries are still looking at bitcoin as a digital currency that will not last long in the world.
Many countries are still avoiding bitcoin because is a decentralized currency which no body know when it will start pumping and when it will start dumping in the community. Some countries are still looking at bitcoin as a digital currency that will not last long in the world.
No amount of regulation can make it centralized.
Government can't control the bitcoin network, but they can still control you with regulation. See now, the government has managed to control the majority of bitcoin users by making regulation on KYC compliance on a centralized exchange for all users. Anyone who uses this exchange service then they must comply with the rule. They don't create a centralized bitcoin network like bank, but they can regulate bitcoin users living in their jurisdiction. This happen in most countries and mine is no exception.No amount of regulation can make it centralized.
Government can't control the bitcoin network, but they can still control you with regulation. See now, the government has managed to control the majority of bitcoin users by making regulation on KYC compliance on a centralized exchange for all users. Anyone who uses this exchange service then they must comply with the rule. They don't create a centralized bitcoin network like bank, but they can regulate bitcoin users living in their jurisdiction. This happen in most countries and mine is no exception.
I do not see that happening in the future. Bitcoin can not be centralized. No amount of regulation can make it centralized.
I am one of those who think that governments would find it impossible to centralize Bitcoin, it would be something that is not within the ranges, a government or several governments could not control all the supply and demand of btc, if not even the richest in the world can have the control of the market, a government or several cannot agree to do so, it is as if the whales agreed together with the institutions to decide the movements of the BTC market, then in a case out of the real world, if it happened In the case of centralism, I believe that governments could not control such power.
I don't think that will happen. Of course, cryptocurrencies will remain in their nature, although currently many governments are creating their own digital currency, but when it is still centralized, the government doesn't seem to want to leave fiat currency, doesn't want to lose control.
The government will only grant their own digital currencies, and then they will try to force people to make use of their own currencies instead of decentralized cryptocurrency like Bitcoin. But, we all know that it is not going to be possible for them to stop people from making use of bitcoin and other truly decentralized crypto currencies that we have now, because no matter how much they try people are still going to continue making use of these currencies, and there are so many ways that this crypto currencies can be used without the government finding out that people are using it, which is the good part of it.The only time that the government will know that you are making use of crypto currency is when there are middle men involved, such as coinbase.com and the rest of them that are centralized.
Well, though there are too many countries trying to do that it has been always contradicting to the bitcoin nature, the decentralized nature of bitcoin will hardly become a centralized one. Government has its own centralized currency and I don't think this is necessary that they will have to pursue centralized bitcoin which is heavily regulated by them. However, in fact, bitcoin can be regulated by the government but not directly on it, they can do that on their citizen.
Even if a government do owns a cryptocurrency and they regulates the whole structure and frameworks, it wouldn't mean that they can amass supporters who will invest on it. Personally, people nowadays are into cryptocurrency because of the reason of liberty and a secure space that no one is a boss, and because it is a decentralized platform. If government will continue this one, who would actually support them if the reasons and facts are against it.
Well, though there are too many countries trying to do that it has been always contradicting to the bitcoin nature, the decentralized nature of bitcoin will hardly become a centralized one. Government has its own centralized currency and I don't think this is necessary that they will have to pursue centralized bitcoin which is heavily regulated by them. However, in fact, bitcoin can be regulated by the government but not directly on it, they can do that on their citizen.
Even if a government do owns a cryptocurrency and they regulates the whole structure and frameworks, it wouldn't mean that they can amass supporters who will invest on it. Personally, people nowadays are into cryptocurrency because of the reason of liberty and a secure space that no one is a boss, and because it is a decentralized platform. If government will continue this one, who would actually support them if the reasons and facts are against it.You can think of every government have its own crypto alternative to fiat currency but this model won't be so easy to implement. Consider if a rich county buying all the cheap coins of a poor country and virtually overcome it.
Even if this happens, bitcoin will still remain popular and people would not stop investing in it.
Well, though there are too many countries trying to do that it has been always contradicting to the bitcoin nature, the decentralized nature of bitcoin will hardly become a centralized one. Government has its own centralized currency and I don't think this is necessary that they will have to pursue centralized bitcoin which is heavily regulated by them. However, in fact, bitcoin can be regulated by the government but not directly on it, they can do that on their citizen.
Even if a government do owns a cryptocurrency and they regulates the whole structure and frameworks, it wouldn't mean that they can amass supporters who will invest on it. Personally, people nowadays are into cryptocurrency because of the reason of liberty and a secure space that no one is a boss, and because it is a decentralized platform. If government will continue this one, who would actually support them if the reasons and facts are against it. 
Have you ever heard about WBTC? No one can centralized the Bitcoin in a De-Fi world.
this sounds really hard to happen but it never hurts to fantasize about it for a while. What makes bitcoin special is that it is decentralized. but if the government made it centralized would people still use bitcoin? seems to be slowly abandoned and the price will drop drastically.
Although I don’t see how that is going to be possible for the government, but let’s just imagine that the government in one way or the other succeeds in making Bitcoin or the whole crypto currencies become centralized, would people still make use of it? My answer to that would be a yes. And of course we are not going to like it that way, but people will still make use of it.We are not going to be happy that it has become centralized, but I don’t think that would be enough reason for us to abandon it and stop investing in it. Even if such things should happen, people will still continue to invest their money in Bitcoin. But then, I believe that it is not going to be possible that the government would turn Bitcoin from decentralized to being centralized. I am open to any opinion that can prove me wrong on this.
this sounds really hard to happen but it never hurts to fantasize about it for a while. What makes bitcoin special is that it is decentralized. but if the government made it centralized would people still use bitcoin? seems to be slowly abandoned and the price will drop drastically.
Well, my opinion on the matter of government centralization of Bitcoin is that even if they were to control the right amount of hashrate to take control, why would they do so for a currency which is already mostly mined and the attempt of centralization alone will only incentivize people to switch to a different crypto on another blockchain, thus plummeting the value of Bitcoin and making it something that nobody wants to use.
The attempt itself would be a huge waste of time and funds. In the end, a fruitless endeavor.
The attempt itself would be a huge waste of time and funds. In the end, a fruitless endeavor.
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