Threat to Crypto Currencies

[Gpx]

I think we can all agree that cryptos are here to stay and only the form and applications are yet to be determined.

Has any one considered the threat to independent cryptos that a gov't or central bank issued crypto represents?
A crypto tethered to the US dollar could gain rapid widespread acceptance by banks and business entities making it possible to buy anything from a soda to a car in crypto. Debit card readers could quickly be converted. bank account balances could be held in dollars or cryptos etc.

While we might get the benefits of electronic payments that come with a digital currency, we would completely lose the protection from the manipulated value (or devaluation) of the dollar. That won't stop the banks from doing it. In fact it's an incentive for the banks to do it. Their tethered crypto could get widespread usage in a couple of years and make it very difficult for non tethered cryptos to gain acceptance.  Widespread business acceptance of a crypto will lead to widespread acceptance by the non technical general public that don't understand the difference.   

[Don Pedro Dinero]

They are already doing it. Some governments have announced that they will issue their own cryptocurrency and many banks are behind some crypto. In that way, many alts can be threatened but Bitcoin is different because it has a limit of 21 million coins to be issued and because it is decentralized, so it has something to offer that the other cryptos can’t.

For me, governments and banks issuing cryptos is not as dangerous as most of the G20 group countries passing a hard ban on bitcoin.

[gantez]

At the moment, I don't think a ban on crypts or bitcoin is going to be total (if at all it will come ) , this is because bitcoin is decentralized and distinct countries have started looking for accepting it because it would assist there economy when they invest on it.

[BartS]

I think we can all agree that cryptos are here to stay and only the form and applications are yet to be determined.

Has any one considered the threat to independent cryptos that a gov't or central bank issued crypto represents?
A crypto tethered to the US dollar could gain rapid widespread acceptance by banks and business entities making it possible to buy anything from a soda to a car in crypto. Debit card readers could quickly be converted. bank account balances could be held in dollars or cryptos etc.

While we might get the benefits of electronic payments that come with a digital currency, we would completely lose the protection from the manipulated value (or devaluation) of the dollar. That won't stop the banks from doing it. In fact it's an incentive for the banks to do it. Their tethered crypto could get widespread usage in a couple of years and make it very difficult for non tethered cryptos to gain acceptance.  Widespread business acceptance of a crypto will lead to widespread acceptance by the non technical general public that don't understand the difference.   

We know that is a possibility governments are going to create their own crypto, but that crypto will not be like bitcoin it will be even worst than fiat, since at least with cash you get anonymity, not with their coin, this will cause many people to adopt that coin without thinking but at the end bitcoin is going to win as the economic system begins to crash down.

[kaya11]

They are already doing it. Some governments have announced that they will issue their own cryptocurrency and many banks are behind some crypto. In that way, many alts can be threatened but Bitcoin is different because it has a limit of 21 million coins to be issued and because it is decentralized, so it has something to offer that the other cryptos can’t.

For me, governments and banks issuing cryptos is not as dangerous as most of the G20 group countries passing a hard ban on bitcoin.

The Google, Facebook, and Amazon are more dangerous than the government if they decided to implement their own cryptocurrencies. These big companies are trusted by consumers all around world, they have the money and power to make a coin of their own and dominate the market. These companies are influential enough to turn the tides, I just don't know when, or rather it already started like what tether is about now.

[deathwish]

Threat to cyrpto currency is the Greed of people and the hackers which undermine the security of the investments.

[elloco4ever]

At the moment, I don't think a ban on crypts or bitcoin is going to be total (if at all it will come ) , this is because bitcoin is decentralized and distinct countries have started looking for accepting it because it would assist there economy when they invest on it.

Yes there are many countries planning for blockchain technology and their own crypto currency and the first one to officially announce that is Venezuela as their government is planning for crypto named "Petro" and once this will be successfully implemented i believe other countries who are looking to recover heir economy and get rid of debt will adopt same. All they need is more awareness and showcasing the benefit of crypto coin for both the normal civilians and the government as well.

[baradfo]

At the moment, I don't think a ban on crypts or bitcoin is going to be total (if at all it will come ) , this is because bitcoin is decentralized and distinct countries have started looking for accepting it because it would assist there economy when they invest on it.

Yes there are many countries planning for blockchain technology and their own crypto currency and the first one to officially announce that is Venezuela as their government is planning for crypto named "Petro" and once this will be successfully implemented i believe other countries who are looking to recover heir economy and get rid of debt will adopt same. All they need is more awareness and showcasing the benefit of crypto coin for both the normal civilians and the government as well.

I agree that many countries are trying to experiment to bring their fiat into crypto and run with that. I also agree that it would get a lukewarm reception from the community at large and only newbies and uninformed would buy into it. Though I was unaware that Venezuela was planning on putting theirs out so soon. I don't see that taking off as quickly as they think, if not fall flat on their face since the Bolivar is worth less than WoW gold. I know Canada tried to get their currency on crypto a while back and it failed miserably. Something that I've been keeping my eye on and something that governments would want to keep their eye on would be cities putting out their own crypto. That could be a long way off, or not. But if that happened cities would/could gain considerable power over the state since some major cities of the world have an economy rivaling some countries.

[eyesopen]

there is really no threat to crypto other than the internet being switched off,

and that is not going to happen!

if governments or facebook or whoever create a crypto currency there will always be those who choose decentralized and unregulated options just like we are doing now.

[Fortify]

I'm not sure there is much point in a crypto-currency directly linked to USD and how would the technology work to factor in scenarios that governments take, like quantitative easing? What you are suggesting is what we've already got, physical currency. Bitcoin was built to be decentralized and prevented from being controlled by any group of people.

[maxamus]

Threat to cyrpto currency is the Greed of people and the hackers which undermine the security of the investments.

Yes even i feel the biggest threat to crypto is the greed of people i mean bankers and other government regulatory who can strike crypto currency anytime by trying to ban bitcoin (for them bitcoin is the main contender as altcoins are yet to reach that level) as i have read the government of Bangladesh has banned bitcoin as they cannot trace the transaction or identity of the person doing transaction and i think government to can ban crypto anytime they want and before they do that we need to form a strong crypto community and showcase the benefits and merits of crypto to the government.

[squatz1]

They are already doing it. Some governments have announced that they will issue their own cryptocurrency and many banks are behind some crypto. In that way, many alts can be threatened but Bitcoin is different because it has a limit of 21 million coins to be issued and because it is decentralized, so it has something to offer that the other cryptos can’t.

For me, governments and banks issuing cryptos is not as dangerous as most of the G20 group countries passing a hard ban on bitcoin.

No it's not, there's only a few countries (Venezuela, and maybe Saudia Arabia) announcing that they're going to be issuing their own digital currencies, but this doesn't mean at all that it's going to be used by the people at all. As we can't be FORCED to use it (unless they change their official currency to the crypto one, which they wont)

The biggest threat is government regulation, they can screw us all over with some taxes and regulation which is HORRIBLE. They can make all of our lives a living hell in the snap of a finger by a government bureaucrat.

[Hydrogen]

State issued crypto may not be a legitimate threat.

Crypto issued by a government will likely implement unlimited supply. With many nations around the world dropping the dollar as a reserve currency in their oil based transactions to protect themselves in case the dollar's unlimited printing cycles and high deficit lead to hyperinflation and default, I can't see unlimited supply being a popular aspect of any currency over the next few decades. The euro too is not in great shape with its excessive printing/debt.

The most governments might hope for is to create a crypto currency which relies upon bitcoin's brand name recognition for reliability, honesty and longevity. State treasuries could tether their own crypto to bitcoin's name brand the way that forks and altcoins do.

With fiat currencies like the petro dollar being dropped & no longer supported around the world, it may be clear not many trust fiat these days.

[NUFCrichard]

The threat I see to crypto currencies is when the hoards that are now investing in Bitcoin realise that they now own electronic gold.
They didn't seem too bothered about holding physical gold, but now they are in on electronic gold. 

The average person on the street doesn't care about goverments controlling money supply, or inflation or liberty. They want to be able to pay for stuff easily. They want to make a profit too. They have been in the right place for profits recently, but the actual use of Bitcoin might be a bit more troublesome. I mean they will pay high fees, wait a long time for confirmations and realise that at the end of it all, they have paid for something they could have used Paypal for.

So the will hold. like digital gold. Except no one is interested in Gold..

[tomahawk9]

I think we can all agree that cryptos are here to stay and only the form and applications are yet to be determined.

Has any one considered the threat to independent cryptos that a gov't or central bank issued crypto represents?
A crypto tethered to the US dollar could gain rapid widespread acceptance by banks and business entities making it possible to buy anything from a soda to a car in crypto. Debit card readers could quickly be converted. bank account balances could be held in dollars or cryptos etc.

While we might get the benefits of electronic payments that come with a digital currency, we would completely lose the protection from the manipulated value (or devaluation) of the dollar. That won't stop the banks from doing it. In fact it's an incentive for the banks to do it. Their tethered crypto could get widespread usage in a couple of years and make it very difficult for non tethered cryptos to gain acceptance.  Widespread business acceptance of a crypto will lead to widespread acceptance by the non technical general public that don't understand the difference.   

You're right, a crypto backed by the govt and a central bank would definitely gain a major widespread adoption in the blink of an eye, especially if the big multinationals around the world start accepting this new cryptocurrency into their business. I think i've read somewhere that the big central banks in the world are already working on creating their own cryptocurrency, so it's a matter of time before we see them in the crypto market.

But what you're missing here is that people who use cryptocurrencies use it for several reasons: anonymity, privacy, security and most importantly, they use it because they are decentralized (at least most of them). A cryptocurrency with a central administrator will most definitely have a hard time getting an approval from the crypto community.
And think about it, once people figure out how cryptos work they'll start asking themselves: why should I use this crypto issued by the govt when there's many other cryptos out there that offer the same thing but without me having to pay taxes? (because you know that this new crypto will come with some sort of regulation/taxes).

So I wouldn't say independent cryptos would consider it a threat, there are other things that could represent a real threat to cryptocurrencies.

[Alns]

You are just putting in the shoes of every venezuelean, and that is not right, you are not even closer to the real concept of that Coin.

They do not have more money, Venezuela is dead right now, their bills are being sold because they are worth $0.00001 each one of them (i am talking about the paper) even less than a satoshi

They said that they were going to create a crypto based on their gold and oil, but they do not have anything, they are selling cheap oil to the united states because they do not have anything more.

Yes there are many countries planning for blockchain technology and their own crypto currency and the first one to officially announce that is Venezuela as their government is planning for crypto named "Petro"

And if they develop that coin, it is just going to be like any other scammy project, they are trying to recover their economy just based on that coin, and that is impossible.

Venezuela is a lost case, they can not do anything in order to bring back the wealthy to their country again.

[patt0]

That is not a threat to crypto, and I don't think it would change anything. A lot of countries are already doing it, and maybe they thought it would be a way to reduce the hype around crypto, and mitigate all the interest to their controlled currencies. The thing is, that a crypto coin issued by a bank would just be a way to make payments more easy, so it would be an evolution in the technology, and although that might be a good thing, it doesn't solve all the other issues fiat currently has.

The good thing about bitcoin is that it has the potencial to combine a method of payment even easier to use than fiat, with the value of gold (being scarce, and even more decentralized). This is something a crypto issued by a bank can't really do, so they are not competitors. If banks thought that, they were just wrong.

[bob3772]

I think we can all agree that cryptos are here to stay and only the form and applications are yet to be determined.

Has any one considered the threat to independent cryptos that a gov't or central bank issued crypto represents?
A crypto tethered to the US dollar could gain rapid widespread acceptance by banks and business entities making it possible to buy anything from a soda to a car in crypto. Debit card readers could quickly be converted. bank account balances could be held in dollars or cryptos etc.

While we might get the benefits of electronic payments that come with a digital currency, we would completely lose the protection from the manipulated value (or devaluation) of the dollar. That won't stop the banks from doing it. In fact it's an incentive for the banks to do it. Their tethered crypto could get widespread usage in a couple of years and make it very difficult for non tethered cryptos to gain acceptance.  Widespread business acceptance of a crypto will lead to widespread acceptance by the non technical general public that don't understand the difference.   

It wouldn't surprise me to see banks do this at some point but right now really what is the point for them? They are still making billions of dollars and in terms of micro payments can't be beat when it comes to debit/credit card transactions. In time once cryptos become more competition I'm sure a bank will make their own or adopt one and it will be seriously difficult then for others to compete

[PMmesexycoins]

Existing crypto could do that, too. Well, maybe not the volatility part.

Thing is, virtually everyone perceives incomes in fiat, heck a huge number of people in developed nations work for the government, etc.; fiat has an established circulation, while crypto is attached to this existing system.

[danherbias07]

It is already happening.
Do you really think that they are not doing steps while seeing bitcoin rise at this much? Of course they will.

That is the government and every one of them dont want people to be using a free currency that cannot be seen through taxes.
They also dont want that their own officials are hiding money thru means of bitcoin. So they will create their own so they can see it.