The Coming War Between Digital Currencies

[Oroplata]

It's a good sign that we are heading toward stabled cypto currency era. We will have a government issued digital currency in the market alongside with different altcoins. People will only choose which digital currency is accepted for whatever transaction they make.

[random8888]

Why? Why not just support the Govt issued currencies? Why to hide your transactions from government?

Fair assertion, but a war lol! i think is been a bit exaggerated. Off course governments want regulation, that is what makes them governments and keeps them in business. Most will do the same in their shoes. People will find a way around these so called regulations if necessary.

Because govt has absolute power over their currency. If you are talking about a Digital currency issued by the Govt, you might as well use FIAT. Bitcoin is all about freedom and decentralization.

[aoluain]

well it wont be a war because it will be as it is now, FIAT or Crypto
FIAT is definitely moving towards a digital useage and we are becoming
less and less a cash economy.

I still think there will be those happy to use the Government controlled
Digital FIAT and those that want sonething alternative that is not
controlled but decentralised, opensource, unregulated . . .

thats why we are here on BCT! good article though . . .

[baradfo]

I wonder if the US govt will try to get their fiat into crypto to move themselves away from the FED and control their own currency instead of the banks.

[StockBet.com]

Why? Why not just support the Govt issued currencies? Why to hide your transactions from government?

How’s that camera in your bedroom working out? Bathroom?  Why hide anything from the government?

I guess if you don’t care about liberty, then you’d be okay with someone monitoring everything you do, but some people care about freedom.

Edward Snowden said that NSA workers would grab photos from people's computers and phones, pass them around the NSA office and have good laughs at the photos.

[slowlii]

Why? Why not just support the Govt issued currencies? Why to hide your transactions from government?

Fair assertion, but a war lol! i think is been a bit exaggerated. Off course governments want regulation, that is what makes them governments and keeps them in business. Most will do the same in their shoes. People will find a way around these so called regulations if necessary.

Obviously, there is no reason to support government related things only. There are digital assets available for all of us out there and this is showing how beautiful the crypto world is.

[Plootonium239]

The struggle for control is already underway....

[BarbieCasino]

Why? Why not just support the Govt issued currencies? Why to hide your transactions from government?

How’s that camera in your bedroom working out? Bathroom?  Why hide anything from the government?

I guess if you don’t care about liberty, then you’d be okay with someone monitoring everything you do, but some people care about freedom.

Yeah no need to hide the use of the bitcoin because using bitcoin is not the sin, actually bitcoin is not good according to the government because now more people use bitcoin instead of the legal currency. It is the time to be worry for the other currency users because soon the bitcoin currency will become more popular and it will be legal when almost everyone will start using bitcoin.

[Zimbabwecoin]

It is obvious that there can be many successful currencies. Hell there are many successful legacy curriencies and those have the disadvantage of the possibility of infinite inflation. At least with crypto there can be controls. Many crypto's focus on competing by offerring an innovation. Many are crap. But, those that really innovate can be successful and there is no arbitrary limit to how many can be successful.

[skyline247]

I think before any cryptocurrency war happens (which most certainly could) we will see a large crash. The price will dip down below $2,000 again. People are forgetting that 6 months ago crypto was under $2,000. This rate of growth simply cannot be sustained for much longer!

[yugyug]

There can be a war among digital currencies on which one of them want to becomes the world's dominance, a lot of ICOs and tokens sprouting like a mushrooms on a grasslands every month and ignoring them to grow and competing in the saturated crypto market working who will be the best.Unregulated and non-standardized crypto could be a bubble, regulation and government policy compliant is a must as soon as possible to sustain the cryptocurrency,blockchain is unstoppable but the users can. Transactions on the blockchain is anonymous but the users can't, anonymities are for criminals, drug lords ,gangsters and villains, if your are a good citizens then why hide your identity if you have no intentions of doing bad things. In the first place Bitcoin cryptocurrency concept was not intended for illegal activities.There can be war if there are no men standing in the middle.

[aardvark15]

In the coming war between digital currencies, which side will your money be on? If that question sounds crazy, meet Arthur Hayes, a former CitiGroup trader who runs BitMEX, a Hong Kong-based crypto exchange that allows eye-bulging leverage – up to 100 times – when buying and selling cryptocurrency derivatives.

Not just another Wall Street veteran, Hayes may also be one of the industry's biggest bitcoin bulls. It's a bold claim, but you might agree if you saw his newsletter – a regular synthesis of cryptocurrency news, gangster quotes, GIFs and end-of-the-world premonitions. In fact, Hayes thinks blockchain is lighting a fuse that will ignite open combat between "true cryptocurrencies" (like bitcoin) and a new "digital fiat" controlled by central banks.

These two parallel currency systems are the inevitable outcome of his core investing thesis: "A digital society needs digital cash." In other words, bitcoin has brought the world cryptocurrency and institutions of all kinds will use the technology to their advantage.

Here's what Hayes sees shaking out as a result: Governments will respond to the proliferation of cryptocurrency by withdrawing banknotes from circulation, and governments will issue digital fiat that functions similarly to cryptocurrency.
But don't be fooled, according to Hayes, the similarities here are all on the surface.

Government-controlled digital fiat will be the antithesis of absolutely everything true cryptocurrency stands for. Central bank's issuance of digital money will lead to a brave new world where governments are able to monitor and control every single transaction in an economy. And countering that overreach is the reason Hayes believes bitcoin and other cryptocurrencies have a value proposition not just today, but for years to come.

The source is here, my friends!

I have been saying this all along that governments appreciate the many innovative feature of the blockchain technology but there is just one thing they can't take and that is the lack of controls once they would let the whole beast roam. That is why they always want to establish regulations so as not to lose the thing that makes them as the government.

We should expecting that soon there would be central banks who can be using digital currency platform to launch their own version of cryptocurrency and these coins can be competing directly with Bitcoin. But as the man above is telling us: never be fooled as we should know what side are we siding with.

I've always believed that governments will eventually go away from paper and coin money and will transition to electronic money of some form. Major countries already conduct many transactions that way anyway with credit cards, PayPal, etc. I don't use much cash myself. It's going to happen.

However, government money will be different from decentralized currencies like Bitcoin. Government run digital currency will be controlled by the government and the rules can change such as the number of digital dollars in circulation just like they do now. They won't be able to control Bitcoin this way.

[Falgorn]

The war between the digital currencies and the governments of states is already taking place and this stage was inevitable. We need to go through it and move on. Governments will inevitably try to subordinate the Crypto-currency and if they see that they can not do anything to it, they will have to retreat. Then the crypto currency will continue to develop more freely.

[bitart]

I think we'll have BOTH decentralised coins like bitcoin and fiat-digital coins issued by central banks, at the same time.

When the banking crisis hit, the govt investigated whether they needed to bail out the banks, could the central bank (the Bank of England) handle all the transactions instead? Turned out that the BoE could only handle about 500,000 a day - they were only set up to handle huge transactions between them and the banks.

So the govt was forced to bail out the banks just to maintain the payment system.

Blockchain technology however gives the central bank other options. The BoE is investigating putting the Pound Sterling on a blockchain. The reasoning is, that if there was another banking crisis, instead of a bailout to preserve the payment system, they could just move everything to a blockchain maintained by the BoE.

At the same time decentralised coins like bitcoin will continue to exist. Fiat blockchains arn't a threat to bitcoin, they're a threat to the banking system because who needs them as a payment processor anymore?

Good idea, but what is the difference if the state currency is on blockchain or it's the old fiat? Why there's no need to bail out the banks if the currency is on blockchain? Banks still need to be solvent in case the crisis hits again, to be able to serve the people if they want to withdraw cash from ATMs.
Or, the idea is to eliminate cash totally, not to let people to use cash anymore, just digital cash via phones, bank cards, etc?

[dasdo]

If such an event occurs, most likely will be the most promising crypto-currencies needed in the future for the socium, with the economy in the code and mass popularization. Already, there is competition in the plans of start-ups, therefore only the strongest will survive. All the slag will disappear, there will be a prospect. Therefore, invest thoughtfully and knowing what. Read white papers and road maps.

[Don Pedro Dinero]

Bitcoin was an unexpected event for central banks and governments. They had been wanting to make cash disappear for a long time and when digital money was becoming widely used, an increasing every year, bitcoin and cryptos appeared.

They reason they give citizens for abolishing cash is that in an only digital money world, fraud would disappear. However, that’s only true for small and medium fraud. Big fraudsters, usually linked with the world power, don’t need cash to commit fraud. It is done via international transfers and groups of companies.

The birth of cryptos was very important because if all money became digital and they didn’t exist, we would be in their hands. So, I think the war between digital currencies is actually a war between citizens and the powerful.

[squatter]

The war between the digital currencies and the governments of states is already taking place and this stage was inevitable. We need to go through it and move on. Governments will inevitably try to subordinate the Crypto-currency and if they see that they can not do anything to it, they will have to retreat. Then the crypto currency will continue to develop more freely.

I'm pretty sure that some governments realize the inevitable truth that they can't stop cryptocurrencies. The CFTC gave LedgerX the green light to offer BTC futures markets, for instance. Canada is set to have an ETF on its listed markets in the near future.

And major Japanese corporations seem comfortable enough with the government's legal stance to dive into the mining industry in competition with Bitmain.

[pyedpyper]

today, there has been a lot of cryptocurrencies.

[CriptoCreater]

Any social phenomenon has what is called externalities. For example, antibiotics allow you to treat the health. But their thoughtless application leads to diseases with resistance to antibiotics. In such a situation, society should begin to decide on the use of antibiotics.

As for crypto currencies too. It is necessary to think about what externalities have crypto-currencies. I'm not talking about terriers and drugs. For these things, there is already a good solution - cash.

[leonair]

If governments really want to make a Fiat digital currencies to whoever then they must act fast as the value of Bitcoin is increasing exponentially and maybe before they make a coin for their local countries all of the market capital of their economy is inside of Bitcoin. Let's just wait until that time happen as people will really have to choose to which side will he stay or not but Bitcoin has already set a name and reputation that is really hard to beat easily.