central banks and Bitcoin

[btcjocan]

Central banks will not attack Bitcoin a lot until it gets a lot bigger threat.

Without any threat from bitcoin, it does not cause any effect to banks. Conversely, bitcoin supports development for banks, because in countries where bitcoin accepts, banks make transactions and gain profits.

Digital currency has a great advantages in terms of profit exchanges online which made the banks also gains wealthy profit, and it’s a blessing that in my country nowadays banks online were now exchanging digital bitcoin currency to fiat cash money. Central bank is an independent banking sector, so as with bitcoin also had it's own advantage with regards to sustainability.

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[warrior333]

In order for bitcoin not provoked the global financial crisis, it has the mechanism of limiting production. All will be produced only 21 million coins. Banks always have clients but bitcoin will be more profitable and therefore, its price will rise.

[BingoDog]

So far central banks polices don't influence on cyptocurrencies market. Some day if cryptocurrencies will be included formaly in financial systems then this will be different. Some central banks have already started to test the blockchain technology adn bitcoin too so that might be the sign they will change their behaviour and attitude. Afterall, the first interest of all banks is pure profit.

[iram1011]

So far central banks polices don't influence on cyptocurrencies market. Some day if cryptocurrencies will be included formaly in financial systems then this will be different. Some central banks have already started to test the blockchain technology adn bitcoin too so that might be the sign they will change their behaviour and attitude. Afterall, the first interest of all banks is pure profit.

The only justifiable aim of various countries to launch their own Cryptocurrency is to reduce the marketcap of Bitcoin or in anyway reduce the dominance of Bitcoin on the market. But that is least to happen. They are indeed scared of the increasing marketcap of cryptocurrencies because they in many way can harm their functioning.

[Forbiddenone]

So far central banks polices don't influence on cyptocurrencies market. Some day if cryptocurrencies will be included formaly in financial systems then this will be different. Some central banks have already started to test the blockchain technology adn bitcoin too so that might be the sign they will change their behaviour and attitude. Afterall, the first interest of all banks is pure profit.

The only justifiable aim of various countries to launch their own Cryptocurrency is to reduce the marketcap of Bitcoin or in anyway reduce the dominance of Bitcoin on the market. But that is least to happen. They are indeed scared of the increasing marketcap of cryptocurrencies because they in many way can harm their functioning.

Correct,banks will not allow any competitor which distrupt their economy profit.but as there are various project which are taking initiative to start their own bank system using cryptocurrency and many have issued their card as well.thats a good sign of progress.

[Kaller]

Think about this: central banks decide to lend at certain rates based on how the economy is doing. Bitcoins are a central bank and will prevent any need for some third party to randomly decide to change rates. It's a truly free and open market.

And banks profit from it too, don't forget.
Then they increase money supply, and continue the vicious cycle.
Bitcoin really is amazing in that it lets us control our own money.

[yadi cihuy]

Monetary policy depends on a variety of reasons .. usually it benefits certain projects and weakens others. And I think bitcoin will not replace fiat money. Bitcoin will stand without a bank. And this is very profitable for its owner .. in contrast to the bitcoin fiat money is not influenced by the monetary crisis .. bitcoin is only influenced by supply and demand .. if a lot of demand then bitcoin prices will rise .. fiat money is influenced by the world economy and monetary crisis Which led to a drop in currency prices

[Japinat]

Think about this: central banks decide to lend at certain rates based on how the economy is doing. Bitcoins are a central bank and will prevent any need for some third party to randomly decide to change rates. It's a truly free and open market.

This is absolutely true, bitcoin is not controlled by anyone whom we might afraid they will be driven by that greed, we the users and supporters of bitcoin are dictating how it should perform so if it's successful, we will also succeed. The central bank somehow has the capacity to regulate us since bitcoin can be considered as part of the financial system that needs to complied with the rules to mitigate the risk of illegal activities especially the laundering of funds.

[Indrawan77]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

That is very correct,  so not everything  can be decentralized, sometimes we need someone to control so there are no monopoly from other party, and we need central bank to be centralized and control the global financial, so the inflation rate could be decrease and the country stability can be established, that is why fiat is very important for a country

[xypos]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

I believe that a lot of the issues that arise with fiat currency is purely made by the central bank itself.

The biggest long term instability in my opinion with fiat currencies issued by a central bank is inflation, which in the end makes fiat currencies completely worthless. No single fiat currency has survived for more than 200-300 years, maximum. The average lifespan is significantly less than that.

Only a decentralized currency, such as bitcoin can combat inflation because government cannot abuse its power of the printing press.

Plus, is it really worth it to bail out big banks and stuff with basically taxpayer dollars? This just makes banks less careful with their investment choice knowing that they will get bailed out by the government.

[Achargeturry78]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

That is very correct,  so not everything  can be decentralized, sometimes we need someone to control so there are no monopoly from other party, and we need central bank to be centralized and control the global financial, so the inflation rate could be decrease and the country stability can be established, that is why fiat is very important for a country

This have a point. I know some coin are built for charity and donations. maybe they can help about this matter. we all know that world is really not balance but although we know it, many people are really want to help for those who are in need.

[GoodLuck2]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

That is very correct,  so not everything  can be decentralized, sometimes we need someone to control so there are no monopoly from other party, and we need central bank to be centralized and control the global financial, so the inflation rate could be decrease and the country stability can be established, that is why fiat is very important for a country

This have a point. I know some coin are built for charity and donations. maybe they can help about this matter. we all know that world is really not balance but although we know it, many people are really want to help for those who are in need.

Yeah, I also seen many good people who wish to help poor by their personal bitcoin, some of them want to build school for poor, some of them want to make orphanage and some want to build hospitals. I think we also help those kind of people who work for society. As you said the world is not balanced but GOD created some men to make this world balanced.

[pitiflin]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

If bitcoin replaces fiat do you think that the government of that country would keep their hands tied and won't interfere in the financial transaction taking place? And how do you think a country will get its funds from,since banks are the financial backbones of any country? There will exist a government organisation which would be centralized one,and it will control the transactions/ regulate any rule introduced for financial   transactions.Don't worry about that,but bitcoin will not replace fiat unless and until some sort of a big miracle takes place,so good luck with all your theories on bitcoin.

[Hydrogen]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

There's a huge difference between how politics and finance are supposed to work in theory and how things actually go down in the real world.

The concept of central banks providing stability can be disputed. For example the economic crisis of 2008 was largely caused by banks & their dealings with subprime mortgages rather than prevented by them. Ben Bernanke admitted the federal reserve played a major role in causing the great depression. Banks may be credited with causing economic crisis rather than preventing them. Perhaps from this we can see that there are drawbacks and disadvantages to regulation and centralized monetary policy.

Some investigation and research must be done into the history of banking and central banks to lend a better perspective.

[manchester93]

If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

BTC won't replace fiat money. Not unless governments themselves are eliminated in some sort of anarcho-capitalist paradise. I don't see that happening anytime soon. The greatest power that governments have is to control the money supply and therefore the stability of the national economy.

The concept of central banks providing stability can be disputed. For example the economic crisis of 2008 was largely caused by banks & their dealings with subprime mortgages rather than prevented by them. Ben Bernanke admitted the federal reserve played a major role in causing the great depression. Banks may be credited with causing economic crisis rather than preventing them.

There is a lot of truth to this. But it's more complex than simple cause-and-effect. The reason that governments and central banks engage in unsustainable monetary policies is to provide stability in the short term, at the expense of stability in the long term (when everything collapses).

[justspare]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

If you think so or maybe someone told you, then I will have to tell you it’s totally wrong. There is no way Bitcoin is replacing fiat. Fiat will always remain as the main currency, and Bitcoin will also stay as powerful tech stock you can use for investments, making quick transactions, and a lot more.

[iram1011]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

There's a huge difference between how politics and finance are supposed to work in theory and how things actually go down in the real world.

The concept of central banks providing stability can be disputed. For example the economic crisis of 2008 was largely caused by banks & their dealings with subprime mortgages rather than prevented by them. Ben Bernanke admitted the federal reserve played a major role in causing the great depression. Banks may be credited with causing economic crisis rather than preventing them. Perhaps from this we can see that there are drawbacks and disadvantages to regulation and centralized monetary policy.

Some investigation and research must be done into the history of banking and central banks to lend a better perspective.

Whenever Banks got greedy or corrupted, such crisis have occurred. But these incidents don't change the fact that central banks are needed to maintain the financial stability in a country and in turn are important in economic development. Right now the way our monetary system runs, I don't see that we will survive without banks.

[Kakmakr]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

Ok, Let's look at how central banks do this. They allow for reckless banking practices to happen < The financial crisis of 2007–2008 > and then they jump in with massive bail-outs with tax payers money to save these banks. How was this beneficial to ordinary citizens?

Bitcoin will never replace governments, but it might serve as a alternative when their currencies and policies fails. People are already using Bitcoin as a safe haven/hedge against bad political decision making. < Venezuela >

[michkima]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

Ok, Let's look at how central banks do this. They allow for reckless banking practices to happen < The financial crisis of 2007–2008 > and then they jump in with massive bail-outs with tax payers money to save these banks. How was this beneficial to ordinary citizens?

Bitcoin will never replace governments, but it might serve as a alternative when their currencies and policies fails. People are already using Bitcoin as a safe haven/hedge against bad political decision making. < Venezuela >

Guess that is indeed the case. But really, banks are still important in this world since they play a big role in how finance work. Money cannot be concentrated in every single person, some people need the money while others don't. Those people that don't need the cash right now would need a place to store it and have it loan to other people who need money right now. That is the business of banks and it is necessary.

[cotton ball]

Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?

Ok, Let's look at how central banks do this. They allow for reckless banking practices to happen < The financial crisis of 2007–2008 > and then they jump in with massive bail-outs with tax payers money to save these banks. How was this beneficial to ordinary citizens?

Bitcoin will never replace governments, but it might serve as a alternative when their currencies and policies fails. People are already using Bitcoin as a safe haven/hedge against bad political decision making. < Venezuela >

Guess that is indeed the case. But really, banks are still important in this world since they play a big role in how finance work. Money cannot be concentrated in every single person, some people need the money while others don't. Those people that don't need the cash right now would need a place to store it and have it loan to other people who need money right now. That is the business of banks and it is necessary.

The central bank is indispensable for the economic benchmark of a country, in which case the Japanese central bank has officially provided development funds for bitcoin in japan, the central bank does not avoid problems such as unfinished debt burden, bitcoin Just another Ways to prosper people without having to Intervened.