Central bank faces 3 dilemmas when dealing with bitcoin

[ipanks]

Jiangzhuo'er, presented, 3 questions to the authority.
Dilemma1: is bitcoin money or not?

Dilemma 2: how to deal with bitcoin exchanges?

Dilemma 3: how to control bitcoin price via exchanges?


https://www.reddit.com/r/Bitcoin/comments/5t5rjm/central_bank_face_3_dilemmas_when_dealing_with/

in my opinion, bitcoin is new type of money for future, bitcoin is different with fiat but has the same function like fiat and bitcoin have more benefit than fiat.

i think central bank can integrated their system with blockchain or at least they studied first with blockchain technology so they know how to syncronize between the central bank with blockchain.

to control bitcoin price is difficult because bitcoin is traded in many market exchange so i think it will not good to control bitcoin unless the central bank will make regulation for using bitcoin with the bank.

[xuan87]

Bitcoin is money, if you can spend it and people accepting it as payment then it is money, the bank and bitcoin will never cooperate and work together, and bitcoin can't be controlled, so the bank won't be able to control bitcoin from exchanges, bitcoin is controlled by the user by the demand and supply market

[pinkflower]

It would be in our best interest if it werent defined as money. There are a lot of laws that they can throw at you and claim that you broke if its defined as money. How can you define it as real money if it is only a numbers in a computer screen and not manufactured and distributed by a governments Minting Corp.?

I understand the difference between "money" and "fiats" through bitcoin.

Actually thats true. BTC brings us back to the question, what really is money? Does it have to be issued by the government and be official? There was a time when humans used shells as currency. Why not BTC? BTC has brought back the system of us dealing directly with others without a middleman needed.

[Barbut]

This is most interesting part in your link: `All central banks have a bigger dilemma than Bitcoin, when the truth goes mainstream...` I also think their problem is much bigger then bitcoin, and their dilemmas are coming from fear. There is finally something that can replace them on the throne, before bitcoin who could imagine something like bitcoin?
Central Bank is facing with changing of peoples mind, and they are afraid cause they have a lot to lose.

[ASHLIUSZ]

In a recent article its been described about the loss experienced by several banks just due to the increasing usage of bitcoin. For this banks have feared of bitcoin as well started to implement their own Blockchain technology based digital currency to keep them on the safe side. Possibly in future bitcoin gets circulated as the universal digital currency and every country will have their own digital currency.

[Herbert2020]

In a recent article its been described about the loss experienced by several banks just due to the increasing usage of bitcoin. For this banks have feared of bitcoin as well started to implement their own Blockchain technology based digital currency to keep them on the safe side. Possibly in future bitcoin gets circulated as the universal digital currency and every country will have their own digital currency.

to be honest that doesn't sound so plausible.
bitcoin is being used as an investment, which means people use banks to transfer money to exchanges in order to buy bitcoin (profit for banks) and then when they sell bitcoin they use banks again to transfer money to their bank accounts (another profit for banks). and all this time people are still using banks for all the other things like credit cards, loans, ... all profits for banks.

bitcoin can make banks lose money only if people start using it as a currency instead of using bank services which has not happened yet!

[LeGaulois]

Bitcoin is a money and this is a fact that people can't deny now. Because it is a digital currency doesn't make it to consider less or more a money.
People are using it as a currency to purchase things and not just to collect for the glory of numismatists for their collection of currency.
How to deal with bitcoin exchanges shouldn't be a dilemna, it is something they can deal like with any payments processor online such as paypal.
Why should they control the price of bitcoin with exchanges? Bitcoin is not supposed to be controled by banks or any entity

[hl5460]

In a recent article its been described about the loss experienced by several banks just due to the increasing usage of bitcoin. For this banks have feared of bitcoin as well started to implement their own Blockchain technology based digital currency to keep them on the safe side. Possibly in future bitcoin gets circulated as the universal digital currency and every country will have their own digital currency.

to be honest that doesn't sound so plausible.
bitcoin is being used as an investment, which means people use banks to transfer money to exchanges in order to buy bitcoin (profit for banks) and then when they sell bitcoin they use banks again to transfer money to their bank accounts (another profit for banks). and all this time people are still using banks for all the other things like credit cards, loans, ... all profits for banks.

bitcoin can make banks lose money only if people start using it as a currency instead of using bank services which has not happened yet!

True money has the function of storage of value.

[deisik]

Jiangzhuo'er, presented, 3 questions to the authority.
Dilemma1: is bitcoin money or not?

Dilemma 2: how to deal with bitcoin exchanges?

Dilemma 3: how to control bitcoin price via exchanges?

I guess that dude (if you are not him) should first learn what the word dilemma actually means

Since only the first question could be loosely considered as a dilemma, where you have to choose between given alternatives (e.g. whether to count Bitcoin as money or not). Personally, I don't even think that the "authorities" actually think about that question since it is too general, and it doesn't need to be addressed specifically. Only the second question seems to make sense at all. Really, why would the authorities want to control the Bitcoin price (let alone controlling it via exchanges)?

[bitbunnny]

Many central national banks who are considering to regulate Bitcoin in some way are facing different issues. If they recognize Bitcoin as a payment method and money then also other problems appear because then Bitcoin becomes equal to fiat money, which they don't want, and they have to apply exact rules like for fiat money. That is one of the reason why many central banks are just shutting they eyes in front of Bitcoin.

[BitcoinGirl.Club]

Jiangzhuo'er, presented, 3 questions to the authority.
Dilemma1: is bitcoin money or not?

By definition : Money is a good that acts as a medium of exchange in transactions and exhibits one of these  characteristics: it acts as a medium of exchange or  it is an economic good , and it is a means of economic calculation.
So yes Bitcoin is money as it can be used as a medium of exchange and is an economic good that can also be used for economic calculation. Dilemma 1 solved!

[warwar]

Jiangzhuo'er, presented, 3 questions to the authority.
Dilemma1: is bitcoin money or not?

Dilemma 2: how to deal with bitcoin exchanges?

Dilemma 3: how to control bitcoin price via exchanges?


https://www.reddit.com/r/Bitcoin/comments/5t5rjm/central_bank_face_3_dilemmas_when_dealing_with/

well first bitcoin is a money though it is not tangible but it is a money no matter what but the dilemma in bitcoin is how do we control the price via exchanges because we cant really manipulate the bitcoin at first because it is really difficult but the way how we act about it and how to deal with it is the biggest problem