Topic: What if governments make Bitcoin centralized? - page 6. (Read 1084 times)

The cooperation or relationship between government and bitcoin is far. Is like Combinating bitcoin and government together for fight, and in other way round it's also like the process whereby putting lighting matches and fuel so close, so to expatiate this to our understanding, never will it happen, that government adopt bitcoin and bitcoin also become centralized, do you realize that when we say centralization, we are making reference of regulations by organization or a particular sector if bitcoin happened to be centralized. Which i know vividly that bitcoin will remain in decentralized platform.

That was an abuse of their authority, I guess. The government supposedly will help the community but instead, they become helpless in the way that they will take advantage of their power to manipulate all the things around and make the people follow them forcefully. Now, I was thinking that there is a bigger chance for them to make Bitcoin become centralized and take control of its prices. Like what happens to the country where they are imposing strict rules, it was clear to design that someday it fall into their hands.

I think it's good, even if it really happens I make sure everyone will make bitcoin a very promising investment in the future, everyone will buy bitcoin at an expensive price they will want to buy it. So it's a good step to invest in the future..!!

Exactly. El Salvador was the first country in the world to make Bitcoin legal tender, so it should only be a matter of time before other countries follow suit. There's the risk of centralization, since governments could easily control mining operations and centralized exchanges in order to manipulate Bitcoin to their own will. Besides, the cryptocurrency has an unequal distribution of its supply these days. Most big players have a large stake in Bitcoin, while the little guy is left out of the system. If this keeps up, Bitcoin will reach centralization faster than you'd imagine.

At least, the project's open source nature will keep it going for a long time. In the event Bitcoin becomes centralized, the community could simply create a new fork with a different consensus algorithm and a more equal supply distribution. Let's hope decentralization prevails in the long run for the good of crypto/Blockchain tech. Just my thoughts

Just like what they've done with the vaccine when they won't force people to get vaccinated but they made some rules for the people who are not yet vaccinated. They can lock down an entire country with just some rumor of a new Covid variant and when they create their own bitcoin, I'm pretty sure that they can force someone to sell it or to make it look bad so that they can get it back. Just look what is happening to the billionaires in China. If the whales are known to the public, their government will take advantage of them.

This is the exact reason why, a bitcoin 51% attack from the government in a bid to bring in centralization into bitcoin can never work. Countries on the world can never be united on any course. Not even within a continent. The idea of a general currency within a continent have been established but up to this moment, its been unachievable.
With nations looking out for selfish gains and interest, which nation should control what and who owns what, bitcoin is off limits for centralization by nations of the world. The best they could attempt is what they've been trying to do since. Creation of a digital currency that would be pegged with fiat and it haven't gotten them any further into what cryptocurrency really is.

What's gotten in return from centralizing bitcoin ?
Ion think this is a good move to some government,but some are without selfish interest,not having full control over bitcoin and giving a green for bitcoin activities to be carried out, a simple example is that of El Salvador.

It seems to me that you are recycling an old discussion.
In reality,there's no point for any government to invest(or waste) billions of dollars into buying or building mining facilities.
What's the point?Getting revenue from transaction fees?Don't make me laugh.
In theory,if such thing happens and some government takes control over 51% of the hashrate,two things will happen:
1.First.The vast majority of the Bitcoin community will abandon Bitcoin Core and choose an alternative.
2.Second.The Bitcoin price will collapse to a really low value,which makes the entire operation unprofitable.

Naturally, they could print an infinite amount of money to acquire necessary mining hardware to perform an attack on the network, or they could bribe or coerce the miners to work for the benefit of the State. However, the thing is that the uncontrolled printing would make their national currency hyperinflated and almost worthless, especially if compared to a disinflationary currency such as Bitcoin. The whole economy may collapse. I don't think they will take such a risk if there is no guarantee of success. Anyway, what is the point of making Bitcoin a centralized currency? It won't have these helpful features as CBDCs do.

As a side note, a centralized decentralized digital currency sounds like an oxymoron. A centralized Bitcoin doesn't make any sense: it either stays decentralized or cannot be called Bitcoin.

If they really wanted to nationalize and centralize Bitcoin, they would simply order their citizens to hand over Bitcoin to the State. If citizens refused to follow the order of the State, they would find themselves in jail for disobedience. It is not that hard to issue an order, I don't know what stops them?

The possibility of Bitcoin been centralized is by far really narrow, Bitcoin has gone a long way and gained so much recognition to be centralized.
But let's assume it's possible, Bitcoin would loose it's value because top Investors would all withdraw from the system.

The government can only try to regulate Bitcoin but not to completely manipulate it.

This will never gonna happen. As much as the government wants to take control of everything, they just can't with bitcoin, given its decentralized functionality. It will just become a little regulated, but not to the extent they can do anything with it such as manipulating its prices or even producing more of it like what they usually do with fiat money.

The government do not want something so complicated when they can have a better option for their own agendas. In addition, each governing body of a country has a responsibility and duty to boost their economic growth as well as to let their local currency bloom together with the overall state of their country. So the thing that you say 'one world currency' would be impossible. Also, I don't think the central organization would allow such speculative entity to take over and be dominant all over the world. With the features of bitcoin, they would not really like for it to be used globally unless of course it will benefit them. But then again, why would they want something complex when they already have the thing they need to have power? It's like digging their very own graves. The moment the fiat monetary system ends will be the same moment they won't no longer experience and enjoy the things that they are enjoying today (assuming that the government officials are greedy).

But to answer your question, even if it is really veryyy impossible to happen, bitcoin would lose its essence the time it will be centralized. The original purpose of why it was invented and established would be defeated. We can no longer do what we are used to do if ever it will be regulated because surely the government will intervene in every processes and transactions. This could possibly have benefits to our community, but it has a big repercussions as well. Let's just accept that there are certain things that needed to be left as it is to avoid future complications to both parties.

Just answering a lot of question about people who keep asking about bitcoin replacing fiat, or bitcoin supported by government, or centralized bitcoin, people keep asking about it because think that bitcoin ready to be used like that and government itself wouldn't ever to centralized bitcoin like what you said and guy above me who said it is mission impossible. I think beside focus on that, maybe better we focus for more adoption, reach more people so more demands can be created no matter bitcoin itself will be used for what.

Well they are all tried , yet it's like a mission impossible and we as a crypto enthusiast can only laughing at them. facebook itself as a huge corporate tried that and they received a lot of shit from government while they are also developing the same shit lol.

especially thesedays where crypto popularity are on top and even getting hot.

this is my thought, if the government embraces the government then the value will be the same as fiat, that sounds boring. as long as the identity of satoshi is not known then bitcoin will not be controlled by the government and its value will continue to be volatile and that is the beauty of bitcoin.

Why? why are you thinking like that?
Bitcoin will never ever become centralized, why? Have you heard there's someone who modified the code of bitcoin which has a unique protocol that only bitcoin has? It is impossible to be centralized because bitcoin has its own unique feature and that is decentralized.

Besides, why do governments need to be centralized bitcoin? They have their own currency that can be used in a centralized way, not bitcoin.

I guess the bet is that they won't. That their CBDCs will be enough.

Are you sure? They'd earn the majority of the bitcoins that are mined everyday. And in fact, a government already entered mining which makes me curious if the rest will follow. El Salvador may not have bad intentions, but I have no idea of the others' intention. It's attractive to own a great share of the network.

They could potentially attack it, making it seem useless so we can turn round to their digital currencies. It wouldn't cost that much.

Governments making bitcoin centralized for starters this is not possible! As far as i know Bitcoin is on auto pilot, its not like we have a control room where somebody is pressing some buttons here and there to influence its behavior.  
As far as control goes, the only thing that our governments can do is have some influence over it in form of regulation anything besides this can not affect it...the closest they can do to centralize it, is to make it legal tender.

You make a good point and what you said about corporate firms is what I have thought about long ago. However, it will lead to the manipulation of the market, not Bitcoin centralization.

I'm surprised you believe a government can control something that's way too big for them and the last time I checked the government also agreed that they can't control Bitcoin but only regulate the CEX which is quite different to control Bitcoin.

For now i never think about that, or maybe bitcoin will replace fiat. Maybe what to be focus is how bitcoin can adopt by more people, or who made bitcoin illegal, can be make it legally although only to be as an assets. If a lot of country legalize bitcoin, in case like when people have bitcoin is not a crime, then we can think about bitcoin as payment all over the world.

Why would the government make BTC centralized? It's impossible as they didn't have the control of the transactions nor the "central core" wherever it is now or if it does exist. However, regulated crypto wallets and exchanges can be controlled and we don't have the full custody despite low trading fees and fast transactions.