central banks and Bitcoin

[yangerer]

Bitcoin provides an excellent opportunity to test the untested hypotheses underlying modern economic monetary policy dogma. 

Finally we can see the central banks come head to head with a properly competitive alternative, and the market will decide the winner on merit. 

I predict the end of bailouts, much reduced fluctuations in capital markets, and governments being forced into fiscal responsibility in a way not seen for decades.

[Vaskiy]

Central banks and bitcoin have different applications and both function on different platform. Bitcoin is an separate body that functions without the interference of any other external force. Central Bank has a very structured way that is necessary to have the financial administration to function properly and pave for the economic growth of the country.

[Lampaster]

The activities of the Central Bank has nothing to do with laws of Economics. The Central Bank is a mechanism which allows the government to manually regulate the economy. This leads to presents to regular crises and inflation. Bitcoin is quite another.

[faceoff97]

I don't think that Bitcoin would be able to replace fiat money. First of all, Bitcoin is decentralized.

Fiat money and Bitcoin work very differently, so I don't think that it will replace fiat money as monetary system of a country.

I agree, we don't have to push the use of fiat money. There is no issue on having other form of money as long as it is legal and conforming to national rule. We can both have bitcoin and fiat money at the same time, they can go well alongside. Bitcoin would not mainly cause instability, there are small percent of people are engage with it. And it would take a long time to see majority of the people becoming users of bitcoin.

[danherbias07]

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?

They are controlling it by what means? Deflating the fiat money or inflating it?
That could not happen with bitcoin. They will have to increase the value of every satoshi over and over just to equal the market and that will be chaos if will happen.
I dont think they would want to be a part of something that is decentralized.

[Capradina]

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.

Indeed now there are some teams that make a profitable project for most owners of cryptocurrency, because we can get service like a bank. But one thing I do not think this will change the economy of the cryptocurrency or the project is that a system is already in use, so if this is just a transfer without a better innovation and different from its predecessor it will be much different (many enthusiasts will) . Just wait for time and see what happens

[ModGirl]

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.

Exactly, bitcoin will never be replacing fiat money. These two will run in two different streams. They may effect one another but one can never demolish other. As said bitcoins will work in investments, fast online banking etc. but it will not be overcoming fiat business that if so, surely cause many problems.

[amaral1977]

If BTC would be a real currency bing decentralized people would see BTC stabilize itself as it wouldnt be an inflationary currency. The problem is that BTC his becoming very centralized in terms of hash power concentration so i don´t really see it replacing an everyday life currency as it is.

[wuvdoll]

The activities of the Central Bank has nothing to do with laws of Economics. The Central Bank is a mechanism which allows the government to manually regulate the economy. This leads to presents to regular crises and inflation. Bitcoin is quite another.

Bitcoins and central bank are poles apart. They both have different functions and the purpose you have described of the central bank is pretty correct whereas bitcoins are working as solution to inflation and financial crisis. Bitcoins are providing people with opportunities of earning for themselves without sticking eyes on rude bosses.

[severaldetails]

The way I see it is that the central banks controle the fiat currencies.
But they do it to keep economy intact. That is to the benefit of many people.
Bitcoin these days is more and more controled by mining pools. Not even the market, just the pools.
And the pools work only to their own financial benefit.
I am getting more and more concerned about that developement.

[Cherylstar86]

The way I see it is that the central banks controle the fiat currencies.
But they do it to keep economy intact. That is to the benefit of many people.
Bitcoin these days is more and more controled by mining pools. Not even the market, just the pools.
And the pools work only to their own financial benefit.
I am getting more and more concerned about that developement.

That's more serious thing if you are talking about those controlled by the central banks and not the markets. I think it's more speculative than other rumors that I had read before. If their aim if for the benefit for the people, then there's no problem with that matters but if ever it do bring negative effects behind all what is happening with the fluctuations which caused huge drops; well maybe we should be warned before it threatens the investments that we had.

[jvdp]

The way I see it is that the central banks controle the fiat currencies.
But they do it to keep economy intact. That is to the benefit of many people.
Bitcoin these days is more and more controled by mining pools. Not even the market, just the pools.
And the pools work only to their own financial benefit.
I am getting more and more concerned about that developement.

Ya some how right. Many miners start to increasing the transaction  fees for their own benefit. But I think this will reflect the bitcoin growths. If the bitcoin was wanna to grow on future so.The developer should get into this matter. It's very important too.Miners should consider this and reduce the price of bitcoin.

[fiomcorka]

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?

The central banks should have no business with the affairs of the market, they should mind their own affairs while the bitcoin wouldn’t interfere or meddle in their own affairs bitcoin was made for the world citizens.

[twicezeroiszero]

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.

Exactly, bitcoin will never be replacing fiat money. These two will run in two different streams. They may effect one another but one can never demolish other. As said bitcoins will work in investments, fast online banking etc. but it will not be overcoming fiat business that if so, surely cause many problems.

Maybe, after Bitcoin become to famous and popular than in our life, that future can happening. (a distant future)
Because when cryptocurrency (I cannot say Bitcoin because I do not know Bitcoin in that still No.01 or not) is legal and replace other payment method between countries, it will make most transaction online transfer money throught Blockchain and create a huge community!

[Sileni]

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?

The stability comes from having large stocks of currencies in defined places; banks are simply operating on a different order of magnitude than we are, which means we don't see much of the "global instability" that is actually occurring. World banks basically absorb all the losses and gains on that magnitude, regional banks below that, and we're fighting over the scraps that are too small for them to worry about.

The overall scheme will not change. The medium of the scheme will.

[fabrizoc]

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?

Have you ever asked why the market is not being disturbed by issues relating to the banking sector, its because there is no central bank of Bitcoins, the market is fully owned by users and regulated by them.

[7daystodie]

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?

Have you ever asked why the market is not being disturbed by issues relating to the banking sector, its because there is no central bank of Bitcoins, the market is fully owned by users and regulated by them.

Why should bitcoin be introduced into the country's financial system?
Bitcoin is a unique and independent system. It is important and valuable without introduction to the banking system.
I am confident that bitcoin will never be the basis of the economy. But this does not upset me, but pleases me

[chalkboard17]

Bitcoin can not replace fiat or tradional money. AS you can see, paper money is playing an important role in our life and therefore, it is hard to be replaced and moreover, the government and their banks will not allow this to happen. The bank and fiat are tools for the government to control citizen.

[LeGaulois]

Bitcoin can not replace fiat or tradional money. AS you can see, paper money is playing an important role in our life and therefore, it is hard to be replaced and moreover, the government and their banks will not allow this to happen. The bank and fiat are tools for the government to control citizen.

If paper money is so important, then why banks and governments are doing everything to make cashless societies? The banks are not tools for the government to control citizen, this is the opposite. Governments are tools for the banks to control the citizens. Banks have more power than politics, in fact, banks make the politics. This is the reality...

[Jembut Ireng]

I'm not sure that the central bank accepts and allows bitcoin, the central bank must be able to control, but because bitcoin is decentralized it certainly can not be controlled.