central banks and Bitcoin

[edward9953100]

bitcoin more better than central banks because Bitcoin get your money double invested

[LuanX3]

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 true, that is why I don't think any decentralized cryptocurrency will ever replace the current system of fiat. Right now fiat currency is regulated by the governments but this is not for reasons that is quite easy to understand for others. A lot of people do not realize this, but if we just leave the financial system to be similar to bitcoins everything will go into chaos.

[allohha]

It could lead to a very heavy financial instability!

Imagine within a certain country everyone had exchanged its fiat money to bitcoin and the price is for example $5,000 at that time. Now imagine the bitcoin price drops (for whatever reason) to $1,000 and the central bank of that country can not intervene. This would mean that all citizens lost 80% value of their money! A horror scenario!

I can not foresee such horror opportunities, but I would not introduce Bitcoin into people's daily lives. The fact is that the Crypto-currency is the finance for a certain Circle of people and a certain sphere of the life activity of mankind, since it can be either an investment or an opportunity to keep your money. But nothing more.

[AngelSky]

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 true, that is why I don't think any decentralized cryptocurrency will ever replace the current system of fiat. Right now fiat currency is regulated by the governments but this is not for reasons that is quite easy to understand for others. A lot of people do not realize this, but if we just leave the financial system to be similar to bitcoins everything will go into chaos.

But Upto me ,Bitcoin will replace any Fiat currency. If you inverse in gold means.It will give you only time profit. But it's value of bitcoin is keeps on increasing  day to day.And Central Bank will gives you ,6& 8%- interest for your holding bitcoin. But in bitcoin, the weekly profit you will get

[pearlmen]

Before bitcoin  will get to the point where the effect of its fall or rise will affect the economy in no small way, there would have been enough buffer to cushion the effect of volatility and that's where the importance of a regulatory body. It might not necessarily be central banks because that would negate on founding pricnple of bitcoin as it would mean retuning control to those who led us here at first. I feel the market itself would have been so spread to allow such to happen.

It could lead to a very heavy financial instability!

Imagine within a certain country everyone had exchanged its fiat money to bitcoin and the price is for example $5,000 at that time. Now imagine the bitcoin price drops (for whatever reason) to $1,000 and the central bank of that country can not intervene. This would mean that all citizens lost 80% value of their money! A horror scenario!

I can not foresee such horror opportunities, but I would not introduce Bitcoin into people's daily lives. The fact is that the Crypto-currency is the finance for a certain Circle of people and a certain sphere of the life activity of mankind, since it can be either an investment or an opportunity to keep your money. But nothing more.

[death69]

bitcoin does not need bank to grow. The community can make it stronger and stronger everyday. Banks will control the bitcoin and it against bitcoin's decentralized blockchain system. Therefore, I never think that banks are suitable for bitcoin. Right now, investors do not need the stability. They want bitcoin to fluctuate so that they can earn money

[ajqjjj]

bitcoin does not need bank to grow. The community can make it stronger and stronger everyday. Banks will control the bitcoin and it against bitcoin's decentralized blockchain system. Therefore, I never think that banks are suitable for bitcoin. Right now, investors do not need the stability. They want bitcoin to fluctuate so that they can earn money

Yes u r correct man bitcoin does not need bank to grow and also community can make day by day stronger . Bank does not control the bitcoin and it's a digital currency system  and I think the bank not suitable for bitcoin because there is no stability with the customer and bitcoin will fluctuate to earn money.

[Black Angel]

These are two very different things, the central bank certainly wants to control whereas bitcoin is decentralized so it can not be controlled. will this be met? I think it takes time and socialization of the old.

[Sengoko]

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 only reason bitcoin was able to get to the level it is now is because it has no interference from any
organization or central bank. I think the reason why most countries have useless currencies(sorry to say) is because of the rules put in by the central banks.

[Japinat]

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 only reason bitcoin was able to get to the level it is now is because it has no interference from any
organization or central bank. I think the reason why most countries have useless currencies(sorry to say) is because of the rules put in by the central banks.

Bitcoin is not a regular currency because it is limited in supply, the government does not want to have this kind of system in place as for sure there will be a problem of shortage, when there is a shortage they can easily print money while it's not possible in bitcoin as it is design to have a fixed supply.
Bitcoin is not just a currency because of it's limited supply, it is also an investment so it could be an asset or currency depending on how you define it.

[peter0425]

bitcoin does not need bank to grow. The community can make it stronger and stronger everyday. Banks will control the bitcoin and it against bitcoin's decentralized blockchain system. Therefore, I never think that banks are suitable for bitcoin. Right now, investors do not need the stability. They want bitcoin to fluctuate so that they can earn money

Yes u r correct man bitcoin does not need bank to grow and also community can make day by day stronger . Bank does not control the bitcoin and it's a digital currency system  and I think the bank not suitable for bitcoin because there is no stability with the customer and bitcoin will fluctuate to earn money.

You don't need bank because when you have bitcoin in a wallet that you have control of the private key, then you are itself a bank. With that said, banks cannot control bitcoin because of its decentralized design. This is what Satoshi's want in the first first place. What a Central Bank can do is at least regulated bitcoin transaction in their country like requiring a local exchanges to put a strict KYC/AML to their customer based and of course submitting proper documentation before allowing them to trade, exchange bitcoin to fiat.

[Supreemo]

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 true, that is why I don't think any decentralized cryptocurrency will ever replace the current system of fiat. Right now fiat currency is regulated by the governments but this is not for reasons that is quite easy to understand for others. A lot of people do not realize this, but if we just leave the financial system to be similar to bitcoins everything will go into chaos.

But Upto me ,Bitcoin will replace any Fiat currency. If you inverse in gold means.It will give you only time profit. But it's value of bitcoin is keeps on increasing  day to day.And Central Bank will gives you ,6& 8%- interest for your holding bitcoin. But in bitcoin, the weekly profit you will get

,i thunk your idea might be quiet possible in a long run, not for now, because if we look unto our current situation it is really hard to tell that it could replace fiats sooner or as soon as possible but there is also a slight chances that it could speed up a little faster, but still who knows, for me I don't even trust the centralized banks or whatever it is.

[Kevin77]

Bitcoin is not a regular currency because it is limited in supply, the government does not want to have this kind of system in place as for sure there will be a problem of shortage, when there is a shortage they can easily print money while it's not possible in bitcoin as it is design to have a fixed supply.
Bitcoin is not just a currency because of it's limited supply, it is also an investment so it could be an asset or currency depending on how you define it.

Yes, this is also a problem for governments and its central banks that if they need more bitcoin, it is not in their reach that they arrange the supply. Because it is not paper currency and they do not print it. So, I feel that any central bank of any country would not be able to fulfill the demand of the people for bitcoin. That’s why they do not take any part in bitcoin mining and anything else related to bitcoin.

[olushakes]

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?

Central banks acts as buffers when situations gets out of control but the question to ask is that, what were they looking at before it got to that point where they have to start talking about revival rather than avoidance. Their argument against bitcoin is something I like to see as mere jealousy and as it relates to financial instability, I don't see how that will happen in bitcoin because the origin of that is spending beyond what you have which personally I don't see it happening in bitcoin or say on a high level.

[Qunenin]

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.

Yes, Bank and bitcoins have different infrastructure and they are not compatible with each other.  Banks are centralized and they have proper control over the money which bitcoin is decentralized and no one is the owner of that currency.  Bitcoin wallets can serve as own banks for individual users where they can send receive the bitcoins , but there cant be a central repository for bitcoins. There is no connection  between banks and bitcoins.

[Yasirmrd]

I suppose it will in some way try to regulate and start dealing in bitcoin and accept bitcoin because it is a big threat to banks but there is no way other than accepting and dealing in bitcoin for banks and bitcoin is the future and it is unstoppable because of its nature.  

[nikisev]

We all accept banks as something that have being written in old testament and it supports sky from falling down on our heads. Banks is just weird optimization for loans provision and double spending prevention. Bank provides trusted consensus on value of the money,and contorols money supply. They are inherently unstable because its such a heavy burden to care about all people and provide them with means to buy food and shelter, so they do mistakes from time to time (in regular cyclic way).What will you do when inflation erases all your savings, and you cannot buy bread for your children. Nevermind that inflation is constantly generated by banks. But enough with sarcasm. Banks have clear way to go with cryptocurrencies. They need to embrace them, provide guidance in terms of financial instruments development. Banks have to retreat to monitoring,analytics,and customer support roles, abandoning currency emissions and loans business. But off course they wont do it. They will fight it as newspapers fought internet for ads, as music companies fought mp3, as movie companies fought with torrent networks. I tnink we will hear interviews with bank workers who will complain loosing jobs to blockchain and telling that they only want to earn they money with some dignity.

[omonuyak]

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?

Central Bank is the head of anything related to finance of the country financial system and if anything happens like financial crisis the only thing that will happen is the central bank introduced a momentary policy that will stabilize the financial system and help every thing to normality. Bitcoin also can stabilize financial system during economic crisis through inflationary control as most times what create inflation is the cost of production of fiat money.

[KalaiBTC]

bitcoin more better than central banks because Bitcoin get your money double invested

Bitcoin have more scope than central bank and investing in bitcoin can gave more profit than central banking system so one should prefer BTC. Bitcoins are the future of the world economy systems and banks are really afraid of bitcoins since people are skipping bank accounts and saving their money in the form of bitcoins for big profits than the banks offer.

[henmark]

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 only reason bitcoin was able to get to the level it is now is because it has no interference from any
organization or central bank. I think the reason why most countries have useless currencies(sorry to say) is because of the rules put in by the central banks.

Bitcoin is not a regular currency because it is limited in supply, the government does not want to have this kind of system in place as for sure there will be a problem of shortage, when there is a shortage they can easily print money while it's not possible in bitcoin as it is design to have a fixed supply.
Bitcoin is not just a currency because of it's limited supply, it is also an investment so it could be an asset or currency depending on how you define it.

Yes that is the main reason of bitcoin popularity that it has no interference and also no rival to stay in the path of its popularity and increasemnet. No central bank and any other bank involve in bitcoin business because it is not a paper money.

It is digital currency and the people are so interested in buying and dealing in bitcoin. I think if any bank interferes in bitcoin then it may does not gain so much importance all over the world.