Will digital dollar be a threat to bitcoin?

Abiky

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Quote from: qwertyup23 on December 20, 2022, 10:40:15 AM

I do not think that digital dollar would become a threat to BTC since they have different uses and purposes.

Digital dollar is the same as fiat- the only difference is the platform on where you can use it. In contrast, BTC is something that can be used as alternative payment if you want to secure your transactions in the blockchain. Again, like what I similarly comment on posts like these, both fiat/digital dollar and bitcoin can co-exist with each other. They can both be used as they can fulfill each other's roles effectively.

The Digital Dollar could become a threat to Bitcoin, if the US government forces its use. But that's very unlikely to happen, especially when the US is a democracy. What will happen is that the government will tighten regulations to keep away the "bad actors" from Bitcoin. With how far the cryptocurrency has gone since its inception, it's very unlikely it'll disappear just like that.

I think both Bitcoin and the US Digital Dollar (or any other CBDC for that matter) will live alongside each other for generations. Sort of how Gold is living alongside Fiat up to this date. People will choose which kind of currency to use for day-to-day payments. Who knows if we're closer to a cashless society than we've thought? Just my thoughts Grin

Dzwaafu11

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Digital dollar can't be threat to bitcoin many people in the world use bitcoin as an assets some use to for transactions, since the USD don't be a threat to bitcoin why will digital dollars be a threat

AicecreaME

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I'm afraid it is not.

Any kind of fiat currency does not have the chance to be superior to Bitcoin, in my opinion. Fiat and Bitcoin are completely different from each other, even though it is a digital dollar or whatever currency it is, you can't hide the fact that it is still fiat and is controlled by the Government. Besides, I highly doubt that everyone could use the digital payment instead of cash since not all of the people have the privilege to buy gadgets in able to do so.

qwertyup23

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I do not think that digital dollar would become a threat to BTC since they have different uses and purposes.

Digital dollar is the same as fiat- the only difference is the platform on where you can use it. In contrast, BTC is something that can be used as alternative payment if you want to secure your transactions in the blockchain. Again, like what I similarly comment on posts like these, both fiat/digital dollar and bitcoin can co-exist with each other. They can both be used as they can fulfill each other's roles effectively.

Xinarae*

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I also think that the digital dollar will not be a threat to bitcoin the dollar is usually controlled by the government but bitcoin is not controlled by anyone. It is not accepted by others except certain individuals or institutions. The current trend suggests that digital currency will be widely accepted by the general public. However, it is difficult to say how this system will be CBDC will be the digital version of the printed currency.

Mauser

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Quote from: tjtonmoy on December 13, 2022, 11:28:56 AM

You can imagine digital dollar as a stable coin in crypto. There are stable coins like us dollar in crypto world too. But that doesn't threaten BTC at all. The dollar will be controlled by Government, which defies the sole purpose of BTC, which is freedom and anonymity of personal space. No strings attached.
Why do you think BTC has come to this position over the year?
It's simply because Bitcoin gives us something which dollar can't provide. And BTC becoming more and more popular day by day. So I don't think this will create any major threat towards BTC.

I agree with you, just because there is now a digital version of the Dollar or the Euro doesn't mean all the problems of the fiat money is solved now. Personally I am looking at the digital Dollar the same way I look at the physical Dollar. Both of them are controlled by the central bank. If politicians decide to print more of it then there is nobody stopping them. The main attractiveness of crypto currencies and bitcoin in particular is the independence from national governments and the limited supply. Only when there is a finite number of coins that can't be created out of thin air overnight, will it be a real protection against inflation and a good store of value. The digital dollar is an attempt by the USA to advantage of the rise of crypto currencies. So far I am not convinced that it will be a threat to the crypto community.

Abiky

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Quote from: seoincorporation on December 13, 2022, 11:37:46 AM

To understand if it will be a threat or not, first we have to understand how that digital dollar will work... if governments can print unlimited money with the digital dollar just as they love to do with real money, then it will be a threat to bitcoin. But if the money is limited just as in bitcoin then it will be something good for the cryptos ecosystem.

The Digital Dollar (or any other CBDC for that matter) will never pose as a serious threat against Bitcoin simply because it's centralized by design. Bitcoin's been doing fine alongside paper money anyways, so I think everything else will remain the same after CBDCs are launched for public use. What matters is that Bitcoin remains decentralized so it could resist government interference. Only this way, Bitcoin could survive for generations.

I wouldn't care about the Digital Dollar because it will be subject to inflation just like paper money. Banks will continue to create new units of the currency whenever they see fit, to manipulate the economy to their own advantage. I'm glad there's an alternative that empowers people to be their own bank. Who knows if governments will ultimately give up on their task to try to destroy Bitcoin for good? Just my thoughts Grin

panganib999

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Quote from: Queentoshi on September 20, 2022, 12:28:58 PM

I came across this on the news today, and I wonder if this will be a challenge to the growth of crypto in the united states with the government beginning to consider the digital dollar.

Quote

The White House is particularly targeting the proof-of-work transaction-validation process used by many blockchains, including bitcoin. This mechanism consumes huge amounts of energy because it requires a lot of computing power.

And with everything else, the administration is pushing for a digital dollar, a kind of digital twin of the dollar, at a time when China has taken a step ahead on this issue

Read here
Do you think with the level of civilization in the united states, that the digital dollar will be successful?

If Digital Dollar could be used outside of US with little to no restrictions and a lower transaction fee for that matter, Digital Dollar may be on par with bitcoin's utilities, but I doubt that would be the case cause the capitalist instinct is to always make parameters that will yield the person profit no matter what. Bitcoin on the other hand, although pricey, is very much usable overseas and to top it all off, anonymous, protecting its users privacy with utmost care. Digital Dollar will fall short on this as verification will be needed no matter what to make overseas payments and transactions. In the long run, Digital Dollar will see usage amongst the people, but if bitcoin continues to get the support that it gets right now, it will slowly regain traction.

Robertshon

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It is unlikely that a digital dollar would pose a threat to bitcoin. While a digital dollar may provide some competition for bitcoin, the two are fundamentally different and serve different purposes. Bitcoin is a decentralized digital currency that operates independently of any government or central authority. A digital dollar, on the other hand, would likely be issued and controlled by the government, similar to how physical dollars are currently issued and controlled. As such, a digital dollar would not be a direct threat to the existence of bitcoin, but it could potentially compete with it for adoption as a means of digital payment.

noormcs5

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Quote from: tjtonmoy on December 13, 2022, 11:28:56 AM

You can imagine digital dollar as a stable coin in crypto. There are stable coins like us dollar in crypto world too. But that doesn't threaten BTC at all. The dollar will be controlled by Government, which defies the sole purpose of BTC, which is freedom and anonymity of personal space. No strings attached.
Why do you think BTC has come to this position over the year?
It's simply because Bitcoin gives us something which dollar can't provide. And BTC becoming more and more popular day by day. So I don't think this will create any major threat towards BTC.

Digital dollar or simple dollar, none of these can be a threat to the bitcoin. Even no stable coin can ever become a threat to bitcoin. Stable coins cannot replace bitcoin. If dollars or stablecoins were that important, then we never had bitcoin in the first place.

Quote from: seoincorporation on December 13, 2022, 11:37:46 AM

To understand if it will be a threat or not, first we have to understand how that digital dollar will work... if governments can print unlimited money with the digital dollar just as they love to do with real money, then it will be a threat to bitcoin. But if the money is limited just as in bitcoin then it will be something good for the cryptos ecosystem.

Any money which is controlled by the government can not bring a threat to bitcoin, no matter if it is in the form of digital currency or fiat currency. Also, there cannot be a fixed supply of digital dollars and hence it will not be inflation free.

seoincorporation

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To understand if it will be a threat or not, first we have to understand how that digital dollar will work... if governments can print unlimited money with the digital dollar just as they love to do with real money, then it will be a threat to bitcoin. But if the money is limited just as in bitcoin then it will be something good for the cryptos ecosystem.

tjtonmoy

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You can imagine digital dollar as a stable coin in crypto. There are stable coins like us dollar in crypto world too. But that doesn't threaten BTC at all. The dollar will be controlled by Government, which defies the sole purpose of BTC, which is freedom and anonymity of personal space. No strings attached.
Why do you think BTC has come to this position over the year?
It's simply because Bitcoin gives us something which dollar can't provide. And BTC becoming more and more popular day by day. So I don't think this will create any major threat towards BTC.

ayuskabob

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Not more than euro or yen.

The 2 majors and only threat to bitcoin is 1: perceived trust,it can be hurt by media controlled by banks,but only to an level
and second :the possibilities and dangers of quantum computing to bitcoin encryption and all other crypto technologies.

Abiky

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Quote from: Smartprofit on December 12, 2022, 07:27:10 AM

In my opinion, the digital dollar (CBDC) could negatively affect the future of Bitcoin.

Currently, the first cryptocurrency can be bought and sold for cash. Cash is untraceable. Therefore, governments cannot ban Bitcoin. Also, in many cases it is difficult for regulators to correlate information about the purchase of Bitcoin with the identity of its new owner.

However, the digital dollar (CBDC) allows regulators to fully control all cash flows in the country.

This gives them the potential to control all Bitcoin transactions and even completely ban the circulation of the first cryptocurrency.

This would only apply to centralized exchanges. But not P2P transfers happening on-chain. A person could simply buy/sell Bitcoin without having to go through centralized exchanges (which are traceable by the government). Of course, CBDCs will enable governments to have a full-scope of a person's transactions. But as long as you don't disclose that some transactions are related to Bitcoin trades, you'll have nothing to worry about.

The Digital Dollar or any other CBDC for that matter would only mark the beginning of the end for paper money. Everything else will remain likely the same as it is right now. Bitcoin and some other cryptocurrencies are decentralized, so it's likely they will live alongside digital Fiat for generations. Who knows if we're closer towards a cashless society than we've thought? Just my opinion

Smartprofit

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Quote from: Celin Kai on November 16, 2022, 08:57:37 AM

No matter what form a dollar takes, it's still a dollar. The digital dollar only converts the form, it doesn't change its essence. So the digital dollar won't have any effect on bitcoin.

In my opinion, the digital dollar (CBDC) could negatively affect the future of Bitcoin.

Currently, the first cryptocurrency can be bought and sold for cash. Cash is untraceable. Therefore, governments cannot ban Bitcoin. Also, in many cases it is difficult for regulators to correlate information about the purchase of Bitcoin with the identity of its new owner.

However, the digital dollar (CBDC) allows regulators to fully control all cash flows in the country.

This gives them the potential to control all Bitcoin transactions and even completely ban the circulation of the first cryptocurrency.

Warkop

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Quote from: Yatsan on November 22, 2022, 10:17:52 AM

Quote from: YouYou0321 on November 16, 2022, 02:25:05 AM

Quote from: Memorabilia on November 08, 2022, 12:52:28 AM

Digital dollars are designed to be controlled by the government but that’s not the case with bitcoins.
Bitcoin has its own supremacy. I don’t think the digital dollar will do any harm to them.

The U.S. dollar is completely centralized. Centralization may have some impact on Bitcoin in the short term, but it cannot be affected in the long run. The more you block BTC, the more people will pay attention to BTC.

How would centralisation of a fiat currency will even affect Bitcoin? Im confused. In short term? on what sense? Cryptocurrencies and fiat such as USD has no effect with one another. They are just interchangeable if an investor would like to liquidate an amount of his asset. Even the market prices of cryptos are still based with fiat but a sudden fall on the value of one, won't result to a change with other one's market price.

I also agree with you, there is no relationship between the two, it's just that they have prices on their respective exchanges, sometimes it's confusing, but it's back to the holders how they liquidate a number of their assets, in several markets, because it's true that all prices depend on fiat, not even just this year, even in previous years, experiencing the same thing, only a sudden drop in the value of one currency, all changes depending on them..

Codswallop

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If that happens, people will be interested in Bitcoin too. Today, many people, because of their lack of knowledge, cringe at the idea of Bitcoin. But they won’t once something like that happens.

Abiky

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Quote from: Yatsan on November 22, 2022, 10:17:52 AM

How would centralisation of a fiat currency will even affect Bitcoin? Im confused. In short term? on what sense? Cryptocurrencies and fiat such as USD has no effect with one another. They are just interchangeable if an investor would like to liquidate an amount of his asset. Even the market prices of cryptos are still based with fiat but a sudden fall on the value of one, won't result to a change with other one's market price.

Exactly. Fiat is Fiat, while Bitcoin is Bitcoin. You can't compare both of them because they're completely different things. Comparing BTC vs Fiat (USD, EUR, YEN, etc) would be comparing apples vs oranges. We all know Fiat will always be centralized, no matter how governments wants us to believe otherwise. The launch of CBDCs will only remove paper money from circulation by putting the mainstream economic system into the digital realm. But that doesn't mean Fiat by itself will become decentralized. On the contrary, CBDCs will enable greater centralization as they will allow governments and central banks to have a full scope over people's finances. Not like paper money where transactions are performed from one person to another without leaving any trace.

When the Digital Dollar comes, we should expect everything else to remain the same. Decentralized cryptocurrencies, on the other hand, will continue to improve and reach a wider audience in the future. They will never go away thanks to the way they were designed. Considering that crypto has come a long way since it's inception, it's likely it will live alongside Fiat for generations. Who knows how a full-fledged cashless society will look like in the long run? Just my opinion

YouYou0321

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Quote from: Celin Kai on November 16, 2022, 08:57:37 AM

No matter what form a dollar takes, it's still a dollar. The digital dollar only converts the form, it doesn't change its essence. So the digital dollar won't have any effect on bitcoin.

Yes, the important thing is not the physical form of the currency but the issuance method and issuance logic. What is important is the internal structure. I think there must be stability that fully conforms to the spirit of the blockchain.

Yatsan

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Not even an inch. Threat for what? For allowing people to convert their assets and make use of it simply because this technology is still not widely accepted across countries? nah.

Quote from: YouYou0321 on November 16, 2022, 02:25:05 AM

Quote from: Memorabilia on November 08, 2022, 12:52:28 AM

Digital dollars are designed to be controlled by the government but that’s not the case with bitcoins.
Bitcoin has its own supremacy. I don’t think the digital dollar will do any harm to them.

The U.S. dollar is completely centralized. Centralization may have some impact on Bitcoin in the short term, but it cannot be affected in the long run. The more you block BTC, the more people will pay attention to BTC.

How would centralisation of a fiat currency will even affect Bitcoin? Im confused. In short term? on what sense? Cryptocurrencies and fiat such as USD has no effect with one another. They are just interchangeable if an investor would like to liquidate an amount of his asset. Even the market prices of cryptos are still based with fiat but a sudden fall on the value of one, won't result to a change with other one's market price.

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