Bitcoin as a new World Central Bank

[gregory51gosh]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

[Seville]

I think it will be the people's bank, but i dont think it will be the world's central bank.. The powers that be dont want BTC to survive

[asriloni]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

What do you mean about the central bank? Bitcoin as an intermediate value for altcoin which means if that gives a value for the altcoin.

It's not a central bank or anything like that.
Bitcoin as a root for another crypto.

It just like a rule for another crypto. That's so simple.

[matuson]

I think it will be the people's bank, but i dont think it will be the world's central bank.. The powers that be dont want BTC to survive

The people's Bank can not exist. The Bank is a very complex mechanism which can only very good professionals. I doubt that bitcoin can handle the job. There is currently no conventional bitcoin Bank, and on a global scale this is not real.

[mindrust]

Bitcoin isn't a Central Bank. You are right generally but you are mixing up things.

Bitcoin is digital gold of the cypto world.

When there are bad news (an exchange gets hacked, a country bans bitcoin etc), bitcoin takes a loss but altcoins gets fucked. (literally) Bitcoin has the most resistance against bad news because it is the strongest of all.

When there are good news (bitcoin is accepted as an official currency etc.), bitcoin rises but altcoins explode. Because bitcoin is the most traded currency and that makes it less volatile.

As you can see, bitcoin is the base crypto currency of all. It is the most stable one. Altcoins are volatile but you should mind that volatility works both ways.

[BTCLovingDude]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

not really!
the fact that a lot of ICOs are using bitcoin as the payment only shows that bitcoin is the currency they are looking for.
and don't forget that these ICOs are being created to scam people. and that means they need a lot of newbies for that, and these newbies won't have anything other than bitcoin in their pocket to invest in the ICO so they take the most popular way!

[Yuhee]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

not really!
the fact that a lot of ICOs are using bitcoin as the payment only shows that bitcoin is the currency they are looking for.
and don't forget that these ICOs are being created to scam people. and that means they need a lot of newbies for that, and these newbies won't have anything other than bitcoin in their pocket to invest in the ICO so they take the most popular way!

Well i think it is. Technically we store our money there and banks now has no use if we do that. Most transactions dont need banks, investments dont go in banks and you can wait in time for until price increases. It may not be directly that it can be recognized as a bank but the fact that we can have big transaction without using a bank marks the purpose or concept on how a bank workds in the physical world. Btc can be the bank of the internet.

[Palodar]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

not really!
the fact that a lot of ICOs are using bitcoin as the payment only shows that bitcoin is the currency they are looking for.
and don't forget that these ICOs are being created to scam people. and that means they need a lot of newbies for that, and these newbies won't have anything other than bitcoin in their pocket to invest in the ICO so they take the most popular way!

Well i think it is. Technically we store our money there and banks now has no use if we do that. Most transactions dont need banks, investments dont go in banks and you can wait in time for until price increases. It may not be directly that it can be recognized as a bank but the fact that we can have big transaction without using a bank marks the purpose or concept on how a bank workds in the physical world. Btc can be the bank of the internet.

Indeed, our wallet works well as our bank and ot does more great job than real banks,so possibility may happen since its bitcoin doing a great job now.

[BingoDog]

Bitcoin doesn't have the function of the central bank. Wallets are the place you store your coins but I disagree that these are the same things as bank accounts and bitcoin can't have the same role as in physical world central banks have to fiat currencies.

[ikilledcobain]

I hope Bitcoin destroys central banking. I sincerely hope it doesn't become co-opted to just take it's place.

[virasog]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

What do you mean about the central bank? Bitcoin as an intermediate value for altcoin which means if that gives a value for the altcoin.

It's not a central bank or anything like that.
Bitcoin as a root for another crypto.

It just like a rule for another crypto. That's so simple.

Bitcoin is not a central bank but a central digital currency for all the alts. What does it mean that all the alts are traded again bitcoins and you see very few other markets. Few other markets i remember are Doge/ LTC coin etc but trades are very less in them. But dont think Bitcoin to become a bank or something like that. We already are  fed up of Banks and now need a bank free society.

[webtricks]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

Your question has two parts.
Part one is from cryptocurrencies point of view. You said most of the coins crowdfund through Bitcoin and its true! So Bitcoin is already the 'Central Authority' for cryptocurrencies. Almost all the exchanges are dominated by altcoin/BTC trades.
Secondly from point of view of financial economy. Its still a big game for Bitcoin. It needs to grab market of 7 billion population and considering scaling issue, lets wait for the magic. Till then enjoy big rallies which in my prediction continue for several years. 

[freebutcaged]

Totally mate, just a problem with that vision, 3 or 7 or 15 or even 500 transactions per second is not a central bank worthy of a network.

Don't mention ICOs please because there is no such a thing as a legitimate ICO out there, also I can't imagine Wu as the director.

But I know one thing, what ever Bitcoin is if you don't have at least 21 Bitcoins you'll be standing on the loser side of the future.

[gregory51gosh]

I'll try to answer to all , thank you for all responses.

1. ICO was an example - many gather in ETH (due to smart contracts), I was talking about the process later, when money gathered are often exchanged into XYZ coins to reduce the impact of fluctuation. Only because a huge difference in % of BTC vs. other (statistically, not a rule), I was thinking about BTC as the stability coin. Pjt for the comparison to gold. But still I'll keep the theory of bank in minds, its like a cross-over of both?
2. Why analogy to central bank - because every owner of the wallet is a 'single bank', also grows the production of BTC (mining) like central banks do with money
3. Very good analogy to gold, but BTC is a derivative. It is more like a security then typical gold. Because one may cover its value in different values. ETH has an advantage of smart contracts - you can cover the value of anything, but its a 'prim' derivative, thinking of the old way.
4. Transactions - yes, the network is not ready for micro transactions. But central banks in relation to other banks also do not use small transaction.

So the schema was in analogy: BTC - central bank to other coins (small banks). ETH - like stock or forex for derivatives (smart contracts). I think there will be a range of 10-20 main coins, every for the designed model. What you think?

[Kotone]

I believed that when they are going to build a bank only on a country that fully accepted bitcoin as there one currency a good example there is a country based wallet that they don't need to use any other only wallet also those wallet that no fee on every transaction are being made.

[iluvpie60]

It would not function as a central bank though. A central bank sets rates and sets how much money or loans as issued. Btc is always an average of 10 minutes to generate a set number of blocks and have a corresponding increase of difficulty.

The only thing that is centralized about bitcoin really is the mining. It is quite possible for the chinese government to taker over the miners in china for their own purposes. In that case we would be subject more of a central bank, but the good news is that hardforks can correct the action and we dont need to capitulate to a centralized mining operation.

[bartolo]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

No, because a central bank lends money to other banks in exchange for an interest, sometimes very low. In ICO, bitcoin is used as the means to buy tokens or altcoins, instead of buying them with fiat money people buy with bitcoin because it´s much simpler and is the main currency in the world of cryptos and that everyone uses. To give an example, it´s as if the tokens were shoes and bitcoin the money with which you buy the shoes.

[Faiyz]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

No, because a central bank lends money to other banks in exchange for an interest, sometimes very low. In ICO, bitcoin is used as the means to buy tokens or altcoins, instead of buying them with fiat money people buy with bitcoin because it´s much simpler and is the main currency in the world of cryptos and that everyone uses. To give an example, it´s as if the tokens were shoes and bitcoin the money with which you buy the shoes.

It can also in some sense. You can invest your money and wait for time. Blockchain can on the other can also function as a bank. It can hold many currencies but this is more secured unlike in some banks, so i guess this has high grounds on security more than regular banks.

[omonuyak]

While people invest in alts and tokens, many treats BTC as 'stable' investment. For example, many ICOs make ESCROW in 40% BTC and then other coins.

Do you think BTC unwittingly took the role of the central bank in relation to other coins (detail, consumer 'banks')?

Gregory51gost I wish many bitcoin enthusiast and developers will get to know about this powerful and carefully thought you have posted here. Bitcoin is actually performing the role of regulatory to others coins.

[Hydrogen]

Central banks centralize portions of the economy to make it easier to control and regulate. This has a double edged effect. On one hand: it simplifies matters. On the other hand: the centralization can reduce innovation & industry advancement as we've seen many banking industries stagnate and fail to progress or evolve over a span of decades.

Bitcoin being decentralized in theory lends it towards being the opposite of a central bank. However it being self regulated by cryptographic function could eliminate and even outperform "regulation" to a degree which could recommend it as being an international reserve currency with the potential to be more stable and reliable than currencies regulated by people who are prone to bias.