Topic: Will digital dollar be a threat to bitcoin? - page 5. (Read 2614 times)
The digital dollar can succeed in the United States. The United States has huge capabilities and a very developed infrastructure for the success of this project. In my opinion, all governments will eventually be forced to issue their own digital currency to keep pace with the rapid development in this era, but the question is whether the digital dollar can affect or overcome on bitcoin? The answer, in my opinion, is absolutely no, neither the digital dollar nor any other central currency will be able to exclude Bitcoin.
Isn't this question also for various other CBDCs?
We can see from the digital dollar function itself. is a legal tender. And became the benchmark currency in most countries in the world. But Bitcoin, this not only applies as a currency, but also has value and trust to be something worth investing in. While the dollar, no. This is what makes Bitcoin most likely not to be disturbed by the digital dollar.
We can see from the digital dollar function itself. is a legal tender. And became the benchmark currency in most countries in the world. But Bitcoin, this not only applies as a currency, but also has value and trust to be something worth investing in. While the dollar, no. This is what makes Bitcoin most likely not to be disturbed by the digital dollar.
Digitalized dollars are basically CBDC's. Idea is to get rid of paper based cash and force people to rely on a central authority for digitalized funds. It allows the central authority to revoke the funds at any time or disallow users to spend the funds (ie freeze accounts).
Bitcoin isn't inherently threatened by CBDC's because they don't operate the same. That being said, the indirect threat exists because government will never cease to act on an opportunity to regulate Bitcoin into the ground while propping up their own useless currencies riddled with inflation and inept central bank control
I'd be worried if I were you.
To be clear, I don't think cashless appeal is the only reason why the government's involved in CBDC's. Most people don't carry cash anyways and the government reserves the right to withhold funds from your bank account if they wish. CBDC's make it a whole lot easier to control the money supply, and presumably it shifts more power to the government without having to use private banks as intermediaries.
As I mentioned before, the government would not hesitate to use CBDC's as a cudgel against crypto so it only serves to benefit them. Average consumer has no use for them.
I don't see how and why a government would allow cryptocurrencies to overtake its own currency as the medium for exchange for goods and services within the global economy. There are many reasons for this. However the idea of allowing the Government Currency to hedge against BTC is an interesting idea. We would be going back to the days before the FED was created.
The fact is the topic title is misleading and the information in the post has a different view and statements that do not collide with the topic title. The thread is about United regulation on the energy consumption of Bitcoin proof of work algorithm while the topic title point to a direction of the digital dollar being a threat to bitcoin and other decentralized currencies.
But then we are talking of regulations again where we seek to demystify what will become of proof of work algorithm if it is regulated, but we should also know that there is already an alternative source of energy which is the less expensive and self-generated source as solar power and other clean energy.
There is a place for the dollar despite it numerous problems and personally, I think that a digital dollar is the worst idea out there especially if the motivation is to topple bitcoin instead of making it work along side. My fear is that once the government has control of your currency again especially in through CBDC, they can cut you off or take it all at the push of a button. Additionally, the idea that the government would create a digital currency for free is absurd and naive.
Anyone who is fine using CBDC should be fine using regular dollar as well, that's the difference. We may dislike it as much as we want but when you look at the rankings you see USDT and USDC and BUSD being so high right now, meaning there is a good chance that people who use those stablecoins and invested over 100+ billion dollars into just those three (there are also other stablecoins combined makes it 200+ billion) that means we are going to see government ones to make some noise as well.It's not going to be that easy, it's not going to be simple, but it's going to be something that we can live with in the long term for sure and we will see it hyped up eventually.
The digital dollar cannot be a threat to Bitcoin. At least if I speak for myself, the digital dollar cannot be "absolutely" a threat to Bitcoin.
Bitcoin is not "only" a digital asset, it is also a store of value. The digital dollar will remain dominated by the Fed and will likely have a centralized structure. Bitcoin will not suffer from inflation pressure and will have a decentralized structure. Digital "dollar, euro, dinar, lira, peso" will never be a competitor to Bitcoin for me.
Bitcoin is not "only" a digital asset, it is also a store of value. The digital dollar will remain dominated by the Fed and will likely have a centralized structure. Bitcoin will not suffer from inflation pressure and will have a decentralized structure. Digital "dollar, euro, dinar, lira, peso" will never be a competitor to Bitcoin for me.
When you talks of Digital Dollar what first came into your mind, to me is sounds as a stable coin (CBDC) that can be controlled by government this doesn't have affiliate with bitcoin and in no cost should it be a treat to bitcoin. CBDC can't be compared with Bitcoin outside that government has no control over bitcoin so I don't think this case will affect bitcoin progression or affect its price as per say. Note that bitcoin is valuable assets where people has placed their investment.
I don’t think so. People view Bitcoin as an investment. And I think, dollar has its own value. People who are not comfortable with bitcoin or don’t know what it is would be more interested in the digital dollar.
There is a place for the dollar despite it numerous problems and personally, I think that a digital dollar is the worst idea out there especially if the motivation is to topple bitcoin instead of making it work along side. My fear is that once the government has control of your currency again especially in through CBDC, they can cut you off or take it all at the push of a button. Additionally, the idea that the government would create a digital currency for free is absurd and naive.
I can't judge this as a threat to bitcoin. CBDC won't change overnight, USD CBDC might launch successfully and nothing can stop it but it won't pose any threat at all to bitcoin.
I also strongly agree with your opinion, although digital dollars are managed directly by the government and the government also plans to use digital dollars as a tool to eliminate bitcoin, but I firmly believe digital dollars will never be able to compete with bitcoin, which certainly digital dollars will not at all become a threat to bitcoin, so I never thought bitcoin could be defeated by digital dollars issued by the government. 
I think considering digital dollars as a complement to cryptocurrencies rather than as a challenge. Digital dollars are more traceable, more centralized, and easier to cash out by governments compared to bitcoin.
This could make it more attractive in some ways to consumers who prioritize these features. It is also possible that people will use one or both types of currency depending on their preferences, needs, and concerns.
Simply don't be too discouraged that the government will soon have its own digital dollar; this could eventually prove to be a good thing for crypto enthusiasts.
This could make it more attractive in some ways to consumers who prioritize these features. It is also possible that people will use one or both types of currency depending on their preferences, needs, and concerns.
Simply don't be too discouraged that the government will soon have its own digital dollar; this could eventually prove to be a good thing for crypto enthusiasts.
I can't judge this as a threat to bitcoin. CBDC won't change overnight, USD CBDC might launch successfully and nothing can stop it but it won't pose any threat at all to bitcoin.
We all have become so accustomed to permissioned forms of money - government-issued money - that it became almost impossible for us to conceive of a world based on a permissionless system where all interactions between individuals can be conducted without the violent interventions of those who have power. Yet, with the invention of the bitcoin decentralized system, we are getting closer and closer to a world where governments and money are separated, which means no single entity will have the power to dictate economic course or to print up money out of thin air for no cost to enrich whoever is close to that printer. The main reason why bitcoin may succeed in helping people to throw off the shackles of the system based on fiat money is that it is completely out of reach for those having power: no matter how wealthy you are or how many friends in high places you have, you won't be able to take away bitcoin from people holding their own private keys, you won't dilute their savings, and you won't enslave them by selling empty promises. People didn't ask for the government's permission to generate a random number, they will also not ask for permission to send these numbers to whoever they want because a decentralized system incentives people to behave in a decentralized way.
With CBDCs on the brink of becoming a reality, I think the hopes of Bitcoin "ruling" the world will be long gone. That's because governments will never allow a decentralized cryptocurrency to take away their power over people's finances. The new Digital Dollar will give the US more power than ever, as it will be able to have complete control over each transaction performed on the ledger. Not only will the FED and the US government be able to freeze or control access to your money, but they will also be able to have a complete overview of your spending habits. Everything will be visible by these entities, putting an end to privacy for good.
Don't except them to be friendly towards Bitcoin and other cryptocurrencies, especially when they'd want to force people to use their "new digital cash system". Bitcoin will survive thanks to its decentralized and censorship-resistant design, but not many people will use it because they will be afraid of government's intervention. There's a dark future ahead of us, so we should be prepared for the worst. Just my opinion
I don't see how and why a government would allow cryptocurrencies to overtake its own currency as the medium for exchange for goods and services within the global economy. There are many reasons for this. However the idea of allowing the Government Currency to hedge against BTC is an interesting idea. We would be going back to the days before the FED was created.
We all have become so accustomed to permissioned forms of money - government-issued money - that it became almost impossible for us to conceive of a world based on a permissionless system where all interactions between individuals can be conducted without the violent interventions of those who have power. Yet, with the invention of the bitcoin decentralized system, we are getting closer and closer to a world where governments and money are separated, which means no single entity will have the power to dictate economic course or to print up money out of thin air for no cost to enrich whoever is close to that printer. The main reason why bitcoin may succeed in helping people to throw off the shackles of the system based on fiat money is that it is completely out of reach for those having power: no matter how wealthy you are or how many friends in high places you have, you won't be able to take away bitcoin from people holding their own private keys, you won't dilute their savings, and you won't enslave them by selling empty promises. People didn't ask for the government's permission to generate a random number, they will also not ask for permission to send these numbers to whoever they want because a decentralized system incentives people to behave in a decentralized way. The idea that there would be a "threat" is the fact that we are talking about something that would be a problem for crypto only in the investment amount, not in a controlling way. So, if there is a digital dollar, a cbdc or whatever you want to call it, that means there could be some money that could have gone to bitcoin, could end up with that.
I am not saying this would be terrible for us, but it could potentially postpone the bull run as well. It’s not a "threat", because both will coexist peacefully and there is no problem with that, but at the same time we are talking about something that would postpone the bull run so it's not a great thing neither.
I am not saying this would be terrible for us, but it could potentially postpone the bull run as well. It’s not a "threat", because both will coexist peacefully and there is no problem with that, but at the same time we are talking about something that would postpone the bull run so it's not a great thing neither.
Most people will prefer the Digital Dollar over Bitcoin because of convenience. But that doesn't mean Bitcoin will lose interest among investors and traders alike. It's part of a new asset class that's here to stay for a very long time. Just like Gold, Bitcoin will prove to be a reliable store of value anyone can use to protect themselves against the negative effects of inflation. CBDCs (digital Fiat currencies) won't pose a threat to Bitcoin no matter how you see them thrive in the mainstream world. There will be a separation between the centralized world of banks and the decentralized world of crypto/Blockchain tech.
The fact that the US and other countries are announcing the creation of their own digital currencies, means that Bitcoin has already won the war. Governments had no choice but to do this to help prevent Bitcoin from taking over the world. It doesn't matter if Bitcoin never becomes the world's reserve currency, as long as it stays true to its core values of decentralization and censorship-resistance. Just my thoughts
I don't see how and why a government would allow cryptocurrencies to overtake its own currency as the medium for exchange for goods and services within the global economy. There are many reasons for this. However the idea of allowing the Government Currency to hedge against BTC is an interesting idea. We would be going back to the days before the FED was created.
In my personal opinion, digital dollars will not pose a threat to bitcoin at all, because digital dollars issued by the US government are still the same as dollars issued by federal banks, digital dollars are the same as US paper and coins used. now, in the previous year China also banned bitcoin miners and they tried to create their own coins but the proof is that until now bitcoin is still the main choice of investors, so we don't need to be afraid and don't need to worry even though the government tries to create dollars in digital and issue their own coins but believe me it will never be a threat to bitcoin.
That is one of their ways to rival bitcoin, but the fact is that they will not be able to do that, in fact bitcoin will always be a favorite for many people. Most importantly, maybe this will be the beginning of the road for those who are new to bitcoin. This will happen over time, because sooner or later many people will realize the real purpose of the government in creating digital dollars, that is to say copying the way bitcoin works. 
Threatened in what?
If the internet and electricity around the world suddenly stopped, then that would be a real threat to bitcoin. Centralized and decentralized aren't competition. In the end, all payment systems will become digital to achieve transaction efficiency, the presence of CBDC is a future innovation that however requires support. Whether you wanna use it or not, it's just a matter of taste.
No Fiat currency will ever be able to threaten Bitcoin's existence. That's because Fiat (whenever digital or physical) is centralized, whereas Bitcoin is not. As you've said before, only a complete shutdown of the Internet would be able to stop Bitcoin for good. But we all know this is technically impossible to achieve. A digital dollar would only benefit the US government and the central bank (The Federal Reserve) than individuals themselves. It will be the end of privacy for good since the new CDBC will give the government more power over people's finances. Paper money will be phased out for good, leaving us only with truly-decentralized cryptocurrencies such as Bitcoin and Monero. As long as people have a choice, there should be nothing to worry about. Just my opinion If the internet and electricity around the world suddenly stopped, then that would be a real threat to bitcoin. Centralized and decentralized aren't competition. In the end, all payment systems will become digital to achieve transaction efficiency, the presence of CBDC is a future innovation that however requires support. Whether you wanna use it or not, it's just a matter of taste.
I am not saying this would be terrible for us, but it could potentially postpone the bull run as well. It’s not a "threat", because both will coexist peacefully and there is no problem with that, but at the same time we are talking about something that would postpone the bull run so it's not a great thing neither.
In my personal opinion, digital dollars will not pose a threat to bitcoin at all, because digital dollars issued by the US government are still the same as dollars issued by federal banks, digital dollars are the same as US paper and coins used. now, in the previous year China also banned bitcoin miners and they tried to create their own coins but the proof is that until now bitcoin is still the main choice of investors, so we don't need to be afraid and don't need to worry even though the government tries to create dollars in digital and issue their own coins but believe me it will never be a threat to bitcoin.
This is a topic that has already been heaving debated and as your post mentions, something that China had already rolled out, some time ago in fact. The truth is the same principles apply as to why neither will be any sort of legitimate contender to bitcoin and that’s because they are both centralized currencies and that’s literally all that needs to be said about it.
For the fact that the digital dollar will have an intrinsic value, it becomes a no contender to Bitcoin, since Bitcoin has a value that constantly changes against the dollar, so the characteristic of Bitcoin made it unique and able to be called an asset and that is why most people prefer Bitcoin as an asset more than a currency, the only time Bitcoin is most preferred for the transaction as a currency is when Bitcoin is the only alternative to faint in some incidents. 
I would never think that the digital dollar could be a threat to Bitcoin, because obviously the dollar would not have any support, even though they say yes, and they have proof of it, it is not like that, it is like saying that they now have low support gold bullion, I think everything is like a mirage where there has always been a clear hegemony of the dollar after the second world war, where the USA was consolidated as a world power, from then on they are the strongest currency, so no would mean no fear for Bitcoin, it's simple, bitcoin is managed through supply and demand, and all its ways like whales, people's emotions, institutions, and they are not controlled by governments or banks, I think that is the best guarantee.
Me too, I never thought that when dollar rises crypto currency will be very affected so much, the reason why we are feeling this thing is because of the best market, we're still in the bear market, and I belive once it is done crypto coins prices will goes up and can have a good start again. Web3 is here, few more days or weeks we can see how it will affect the market price Jump to: