It will never be easy to completely change the currency and convert it into a scripted virtual currency. Especially since the dollar is the currency of the whole world. It really is the world's currency.
The US government is seeking to change its paper currency to an electronic counterpart. This will not change the financial characteristics of the dollar because it will remain centrally controlled by certain parties.
In this topic, the news about the gradual withdrawal of the $100 bills from the global markets before their final withdrawal from the US market was discussed :
https://bitcointalksearch.org/topic/removal-of-100-bills-from-circulation-5411084
Topic: Will digital dollar be a threat to bitcoin? - page 10. (Read 2614 times)
a CBDC is not a threat.
its underlying value is locked to its laws. such as minimum wage and its inflation rate.
EG if min wage is CBDC=1hour labour. and each year there is 5% inflation
then in 10 years that 10CBDC is equivalent to only 44 minutes of labour
this means if you can buy 4 loaves of bread today if bread was pegged at 16min labour.. you can only buy 3 loaves in a decade
bitcoins value is supported at the bottom by the lowest cost to acquire it on the planet. which due to its deflationary process increases noticeably every four years meaning after 10 year the lowest value of bitcoin will buy you more bread than the first year
a governments CBDC may feel slightly different to use than mastercard/paypal. but ultimately it ends up being the same moving government money, pay taxes and have value decline due to inflation. and yes they will still 'create' new money at a unmeasured rate of their whim
bitcoins features and utility are different to government money. used for different things and supports a different value system
think of fiat/CBDC as things to get rid of, spend as quick as you can when you get it or invest it.. and think of bitcoin as the place to put it when you want to save/invest your value and not lose it by just holding fiat/CBDC
its underlying value is locked to its laws. such as minimum wage and its inflation rate.
EG if min wage is CBDC=1hour labour. and each year there is 5% inflation
then in 10 years that 10CBDC is equivalent to only 44 minutes of labour
this means if you can buy 4 loaves of bread today if bread was pegged at 16min labour.. you can only buy 3 loaves in a decade
bitcoins value is supported at the bottom by the lowest cost to acquire it on the planet. which due to its deflationary process increases noticeably every four years meaning after 10 year the lowest value of bitcoin will buy you more bread than the first year
a governments CBDC may feel slightly different to use than mastercard/paypal. but ultimately it ends up being the same moving government money, pay taxes and have value decline due to inflation. and yes they will still 'create' new money at a unmeasured rate of their whim
bitcoins features and utility are different to government money. used for different things and supports a different value system
think of fiat/CBDC as things to get rid of, spend as quick as you can when you get it or invest it.. and think of bitcoin as the place to put it when you want to save/invest your value and not lose it by just holding fiat/CBDC
Is visa threat to bitcoins?
Is Mastercard a threat to bitcoins?
What's digital dollar? Is it any different from the dollar in your bank ! ? How different is it gonna be? Is it not going to be backed 1:1 ? It is going to definitely be the same thing honestly and thus at the end of the day what you should focus on is accepting the fact that it's not a crypto it's not an ath it's not even a new kind of virtual currency, it's just nothing but fiat and thus it does have constraints of the fiat as well and there is nothing to be worried about since they are going to be backed and strong, hopefully, maybe not like usdt but can be used in its place.
Is Mastercard a threat to bitcoins?
What's digital dollar? Is it any different from the dollar in your bank ! ? How different is it gonna be? Is it not going to be backed 1:1 ? It is going to definitely be the same thing honestly and thus at the end of the day what you should focus on is accepting the fact that it's not a crypto it's not an ath it's not even a new kind of virtual currency, it's just nothing but fiat and thus it does have constraints of the fiat as well and there is nothing to be worried about since they are going to be backed and strong, hopefully, maybe not like usdt but can be used in its place.
The major issues with CBDC has not been the digitalisation of it but rather the issues of centralization as opposed to decentralisation and the fact that, its always going to he ravaged by issues of inflation. Digital dollar would remain a boundary bonded currency and that's not what bitcoin is. The uniqueness of bitcoin would always be its stronghold and the reason it persists in our world.
Having the government hedge on the energy consumption has become an old news and it would be washed away with the strokes of the clock. The CBDC will never hold a substantial threat to bitcoin.
Having the government hedge on the energy consumption has become an old news and it would be washed away with the strokes of the clock. The CBDC will never hold a substantial threat to bitcoin.
It wont be completely a threat to Bitcoin because many people see Bitcoin as an asset/ invesment instead a payment medium that can contest against the traditional ones provided by centralized platforms, like Visa & Mastercard. I don't share that vision however.
The digital dollar will probably be very successful among the average people who dont know about Bitcoin or cryptocrurrencies in general, since this project of digital currency by USA would likely make easier for people to manage their finances, pay their bills, pay for their services and keep track of their credit score, but in exchange of centralization and possible surveillance for commercial and law enforcement purposes.
Bitcoin shall continue to have high liquidity from those who want to speculate with its value, as investement and tradeable asset, it is also worth noticing those businesses which accept Bitcoin, they do it because either share the idea of a decentralized medium of exchange (while they also accept Visa & Mastercard) or necessity (as consequence from being excluded by Visa & Mastercard). People who already accept Bitcoin could just add the CBDC option if they want and keep Bitcoin and the rest of their options intact.
The digital dollar will probably be very successful among the average people who dont know about Bitcoin or cryptocrurrencies in general, since this project of digital currency by USA would likely make easier for people to manage their finances, pay their bills, pay for their services and keep track of their credit score, but in exchange of centralization and possible surveillance for commercial and law enforcement purposes.
Bitcoin shall continue to have high liquidity from those who want to speculate with its value, as investement and tradeable asset, it is also worth noticing those businesses which accept Bitcoin, they do it because either share the idea of a decentralized medium of exchange (while they also accept Visa & Mastercard) or necessity (as consequence from being excluded by Visa & Mastercard). People who already accept Bitcoin could just add the CBDC option if they want and keep Bitcoin and the rest of their options intact.
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.
Do you think with the level of civilization in the united states, that the digital dollar will be successful?
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 hereAnd 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
Do you think with the level of civilization in the united states, that the digital dollar will be successful?
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