Topic: Will countries launching their own cryptocurrencies affect bitcoin? - page 2. (Read 4532 times)

You are apparently confusing two adjacent but still different things

Namely, a payment system with a currency. In case of Bitcoin these are essentially the same. But this is not so in respect to fiat currencies. First, there is cash which has absolutely nothing to do with digital fiat. They are entirely different systems of money itself (not even payment systems as such) which don't intersect, though they still represent the same currency. If we talk about digital fiat, there can be numerous ways in which payments can be made, for example, through wire transfers, card-to-card payments, payment processors, etc. What you try to explain here refers to yet another payment system, not a new currency per se

There are already countries that are trying to roll out their own cryptos (and I believe Russia has one that they're developing right now) but they're always going to be nothing more than a form of digitalized fiat that will do absolutely nothing to the market aside from trying to follow a fad and appear to be relevant. If countries started to produce their own cryptos that incorporated systems for contracts and the like, then we would have an interesting competitor. Since that doesn't exist, they're all no better than just fiat and essentially worthless compared against other cryptos.

Yes all that can happen if it is bitcoin already widely accepted by all countries and can be inaugurated its existence because if until now bitcoin not only can be inaugurated by some countries how can the country is able to create crypto for each country itself.

If don't talk only about bitcoin and see coins market cup, we will see that there are ethereum, litecoin and etc very serious altcoins which even are better than bitcoin but still can't beat bitcoin. So imagine new coin launched by countries which everyone knows will be manipulated, how will it be more popular than safe and anonymous bitcoin? There is no way and also before bitcoin they have to beat altcoins and that's very hard.

This kind of actions are already been done by other or most of the big countries because they think that it is too late to adopt bitcoin so they just try to make their own and get profit from it and we can see that nothing affects bitcoin because it is a very strong currency and also the king of all the cryptocurrency in the market so it is not that easy to get affected by just a small cryptocurrency.

Yes because if there would be cryptos in their country they would try to make use of it.  And since it is new its price still low and many could afford it.  It will affect the bitcoin but not that much.  Cause prices of cryptos in their country would depend on bitcoin .  

You wanted to know why government want to launch their own cryptocurrency. Gave two reasons.


Why would government want to implement blockchain technology into their financial system?



I guess this is about the involvement of banking system with cryptocurrency. How do you think a centralized cryptocurrency would work? Through banking system only. It is cryptocurrency because it is using distributed ledger/blockchain technology and digitalized tokens of fiat. Without involving banking system it would be just another decentralized currency like bitcoin.

i pretty  agree that it may effect the other altcoins but nothing to worry about bitcoin because being the first and being the father of all crypto currency it has its own representation in the market and i don't think so any of the cryptocurrency can effect its value or importance.
but the way many countries launching their own altcoin it will help both their economy  and importance of cryptocurrency..

I guess it is a matter of time until countries will start to use the blockchain technology.
I'm not sure that the blockchain based currencies will replace the fiat money even in 50 years.
The only question is whether countries and governments will ban the use of alt coins or will allow it to be another method of payment.

Countries may launch their own cryptocurrencies, but it will never affect bitcoin. Altcoins do exist because of bitcoin, but it will never be the opposite, that bitcoin do exist because of bitcoin. But their price depends on bitcoin, if the bitcoin's price is too high, then automatically Altcoins price would go on its DUMP state, and would be the other way around if bitcoin's price would be on its DUMP state.

And what does it have to do with the creation of a new blockchain based government currency?

This is what the question is about if you missed the point. Further, it was said that "governments [...] want to "offer" population "their" coin so they will be able to control the movement of money". As you can see, this is quite different from what you say (the piece by the link you posted talks about money transfers, not making a new currency). Basically, what you say is inconsequential to the point that governments might want to create their own cryptocurrency. So why would they want that, i.e. create a separate coin based on the blockchain technology (apart from "limiting the usage of bitcoins by their citizens")?

Not fantasizing. I did not make any claim, it was just a question, a hypothetical one.


Time taken for transactions, transparency, system resilience, and reduction in cost of record keeping. All this is implemented into the existing fiat system by making it digital, guess it would be enough to "upgrade" the existing fiat system to make it more efficient and effective. Hope my explanation is satisfactory.

As to me, it is a strange way to limit the use of decentralized cryptocurrencies

Did you read about it somewhere or it was entirely your own fantasy to somehow justify the original claim? Other than that, I don't really see how blockchain can help governments. Note that the question is not about money transfers as such (which is what your link is about), it is about creating a new government currency based on the blockchain technology which would circulate along with a local currency. I guess you will have to explain how this "upgrade" could make the existing fiat systems both more efficient and effective

I believe it when I see it. I'm still not sure what the point behind a govermental cryptocurrency / centralized blockchain is. Most fiat is already virtual anyways.

There could be two reasons why a government would want to launch their own cryptocurrency:

1. To limit the usage of bitcoins by their citizens.
2. Solely because they want to upgrade their financial system through blockchain technology. They know it has future and are well aware that this technology could be implemented in many fields, what better place than to launch a cryptocurrency.

https://www.cryptocoinsnews.com/singapores-central-bank-tokenizes-dollar-via-ethereum-blockchain/

Singapore tested digital dollar via private electrum blockchain.



Credit/debit, ATM, and other online payment options could be termed as electronic payment systems but from electronic to fully digitalize fiat, government needs cryptography/blockchain technology. Would it be similar to fiat? Yeah, centralized and it would share some major properties with fiat? Would it be similar to cryptocurrencies? Yeah, if blockchain technology is involved then there should be some similarities.

Most of the countries are going cashless now. Paypal is centralized, but still it has a huge user base solely because majority of people prefer convenience over being anonymous. A government backed cryptocurrency would get a lot of media attention + if it does have cryptocurrency properties then ease of access and quicker transactions would make it more preferable than credit/debit card + if it is available for day-to-day use it would get popular.

This is just simple logic, bitcoin is decentralized and the other centralized like fiat. People who want to use a decentralized pseudonymous currency would always stick to bitcoin and those who are using fiat might see a government backed cryptocurrency as something superior than credit/debit cards or other means of online payment system.

So in short, government would just be upgrading its financial system through the launch of its own cryptocurrency and it has no direct correlation with bitcoin, but indirectly it might slow down bitcoins growth to a small extent.

And what did come out of that?

I've heard such talks for years already but I haven't yet seen such a "coin" for real. And if it is centralized, who and how will be mining it if we talk about the blockchain technology? And why would they waste resources (electricity, labor, equipment) if they can just draw figures in the spreadsheet on their servers? Apart from that, how do you picture people "transacting" with this coin if it is issued by government and it won't be fiat? In other words, how will it be different from fiat, in practice?

Till the people who are trading in bitcoins still continue to use it, it's not going to affect the currency. There were few countries that banned bitcoins as they noticed their citizens dropping the use of their fiat currency and using bitcoins which could harm their own economy. With bitcoins it's not the same and even if every country launches a similar cryptocurrency like bitcoin while the market of bitcoin remains the same, there won't be any change.

If each country launches their own cryptocurrencies, then what is the difference with fiat, each country has its own currency, can be controlled and regulated, if only make digital money, they do not need to launch their own cryptocurrencies, simply use their currency but in digital form , Such as credit or debit card

Those coins will be centralized, that´s for sure, and controlled. I guess the banks will play a key role. They are researching on blockchain technology time ago. About the purpose my guess is that goverments are seeing the potential o cryptocoins and want to "offer" population "their" coin so they will be able to control the movement of money, I am sure that there will be no privacy or anonymity with these coins.

But what's the purpose of that?

If it will be a decentralized coin (something likely dubbed as "people's money"), they will be just starting another altcoin, which makes no sense since there are already quite a few altcoins sticking around (and even more kicked the bucket by now). If it will be centralized, then the whole idea makes no sense since they already have fiat which is by definition as centralized as fuck. There is simply no use for blockchain technology as far as fiat currencies are concerned