Crypto-currencies issued by the States. How will they affect bitcoin?

[Nadirbil]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

[Don Pedro Dinero]

They won't much, I suppose, as they are shitty-fiat currencies. They aren't anonymous but bitcoin isn't anonymous either, only pseudo-anonymous.

I think people who know a little bit about why bitcoin was created, and its features, like decentralization and 21 million cap, don't care about state cryptos.

[bug.lady]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

Ask yourself what would be the incentive to move a country-issued fiat to blockchain. One of the incentives would be that blockchain-based currency is less anonymous than cash. It would be easier to track its users than it is with cash.

Obviously, it would be centralized, it is issued by the governament after all. I think you can forget the "anonymous and decentralized" part.

I am not sure if it will affect bitcoin in any way. Already, there are a lot of altcoins. Bitcoin doesn't seem to care

[wantjokull]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

They might become popular quickly due to the fact that they are being provided by the state government itself. I mean people will have one step ahead in terms of security and safety of their funds. They will love it more than the normal crypto's due to the fact that they are controlled and they dont ave to worry about the loss and scam etc. However, most of the countries will have the problems regarding circulating supply and prices of the coin. Unlike XRP which is regulated currency and having unlimited supply these currencies will also be the same criteria and thus it might get very difficult for price spiking. We cant expect much input from them.

[bug.lady]

They won't much, I suppose, as they are shitty-fiat currencies. They aren't anonymous but bitcoin isn't anonymous either, only pseudo-anonymous.

I think people who know a little bit about why bitcoin was created, and its features, like decentralization and 21 million cap, don't care about state cryptos.

You are right, it is not only Venezuela, I am reading in some other thread that Cambodia is thinking of creating their own crypto. So it seems that the more shitty the currency is, the more it is appealing for their government to move it to blockchain. Don't they see that it is only a cosmetic change, and it will not strengthen their currency in the slightest way?

[cynical]

They wont affect bitcoin in the long run because they will be different centralised currencies based on the same technology as decentralised currencies.
The reasons people are using bitcoin will remain the same.

[JerryJam]

No government in the world is trying hard to influence the cryptocurrency. Mistakenly consider that it has no future. But because of its decentralization, it is difficult to do so .But in some countries, leverage still exists. For example, Bangladesh provides for criminal liability for cryptocurrency transactions. And it can threaten with imprisonment till 12 years.States at the legislative level can prohibit on-line exchangers.

[alani123]

I don't think we're ever going to worry about the USA issuing a cryptocurrency. M2 is where it's at with the states and I don't thin they'd want to deviate from that at all. It'd go against the status quo and the currenct system can't support such.

[Red-Apple]

something that is not decentralized will not even fall under the same category as bitcoin to want to start and affect it. so whenever a country creates their own cryptocurrency which will obviously be centralized, it will NOT have any effect on bitcoin.

in some countries like India, creating such altcoins may lead to the government banning bitcoin or at least tightening regulations around it but in the end it will have no effect on it, people will realize this big difference.

[tomahawk9]

Centralized state-backed "cryptocurrencies" pegged to fiat money won't have any major impact on Bitcoin. First, they won't be direct competitors because Bitcoin is a cryptocurrency, while cryptos issued by the govt will be just digital currencies but not cryptocurrencies. Second, like other users have said, they will be completely centralized (central banks will most likely have control over those digital currencies), which is going against the fundamentals of Bitcoin. So, no, "cryptos" issued by the government won't affect Bitcoin whatsoever.

[VitKoyn]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

When a country or government creates their own cryptocurrency it means they don't want the original concept of cryptocurrencies being decentralized currency, so it means that it will be centralized so that they can have the control. Of course it will have an effect to Bitcoin in terms of adoption in specific country where it will be released because government will surely promote and support a cryptocurrency that they issued but it will not affect the price of Bitcoin to go down because a centralized coins will not attract investors, and we have seen some countries that issued their own cryptocurrency but didn't get any success like Bitcoin has.

[YuginKadoya]

Wow! I didn't know that the government is making their own Cryptocurrencies, Where do you get that kind of idea that they can make their own decentralized currency? But the thing is they can really do that but the start up for that Currency will be in zero and will be a head start for them, they can not make their Crypto an equal value with their fiat currency, And they can not just move from a regular currency to a fiat currency that simple.

[Indrawan77]

It wont affect much, there will be not a lot of people interest in the coin that can be controlled by the government, the crypto currencies is famous because of the decentralisation, if the government took that then it will be the same with fiat, nobody will want to used it, so no matter how many countries try to launched their coin,  in the end it will be a failure

[alyssa85]

Ask yourself what would be the incentive to move a country-issued fiat to blockchain. One of the incentives would be that blockchain-based currency is less anonymous than cash. It would be easier to track its users than it is with cash.

Obviously, it would be centralized, it is issued by the governament after all. I think you can forget the "anonymous and decentralized" part.

I am not sure if it will affect bitcoin in any way. Already, there are a lot of altcoins. Bitcoin doesn't seem to care

Also, cash costs a lot to print and issue, so they may wish to save money on that. And if they are a small country without a decent payment processor and are being ripped off by VISA, they might want a crypto to help local retailers.

It's hard to say whether these country cryptos will be successful or not - it depends on whether you trust the country or not.

[Gamebitcoin]

Every country can start their own cryptocurrency. These cryptocurrencies will be pegged to their own currencies. Governments will market them as the next big thing. They will assure the people that they have made better version of the currency based on Bitcoins.

Alas these currencies will still be controlled by central authorities. They will manipulate the supply of the cryptocurrency.

Bitcoin works not because it is a cryptocurrency. It is just a fad term. Bitcoin works because it is decentralised. It is bound by written rules in its code. It works because a group of powerful people cannot decide the terms of Bitcoin. Unless there is mass majority, Bitcoin cannot be changed.

Nobody owns Bitcoins. People own Bitcoins. Nobody controls Bitcoins. People control Bitcoins.

Government can launch n number of cryptocurrencies. They cannot beat Bitcoin because Bitcoins have strong fundamentals.

[Ozero]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

We do not yet have sufficient experience with regard to the existence of state crypto-currencies. I think the national state crypto-alaets will have both certain advantages and disadvantages. The advantages include stability of such a crypto currency, its support by the state, and therefore the absence of large volatility. Since it will be regulated, it will be less exposed to the risk of fraud and depreciation, a sharp drop in the rate will be virtually eliminated. Perhaps, such a crypto currency people will trust more. The shortcomings include the lack of decentralization and anonymity, this type of crypto currency will be used mainly only in this country, as citizens living in other countries will not need it. Such a crypto currency can not bring a significant income precisely because of its regulatory nature.

[pooya87]

Wow! I didn't know that the government is making their own Cryptocurrencies, Where do you get that kind of idea that they can make their own decentralized currency? But the thing is they can really do that but the start up for that Currency will be in zero and will be a head start for them, they can not make their Crypto an equal value with their fiat currency, And they can not just move from a regular currency to a fiat currency that simple.

it is not new, there have been multiple countries that have been working on their own cryptocurrency and Venezuela is only one of them. also the cryptocurrency they are going to make is not going to be decentralized at all.
it will probably be equal to their fiat currency value at some point, at least that is what i think because otherwise what is the point of making such currency?!

[liuqi]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

Bitcoin is always rule the crypto market. Because you are thinking the negatives of Bitcoin but at the same time Russia president announce the good news Bitcoin is legalized in July 18 so definitely Bitcoin is reach in all over the world. First you should check the positive news in Bitcoin then only you believe this coin.

[mkhjhv]

Venezuela has created its own cryptocurrency provided by oil. Other countries are also thinking about their cryptocurrencies. What these crypto-currencies will be different from the private crypto-currencies?They will not be anonymous and decentralized? How will they affect bitcoin?

Ask yourself what would be the incentive to move a country-issued fiat to blockchain. One of the incentives would be that blockchain-based currency is less anonymous than cash. It would be easier to track its users than it is with cash.

Obviously, it would be centralized, it is issued by the governament after all. I think you can forget the "anonymous and decentralized" part.

I am not sure if it will affect bitcoin in any way. Already, there are a lot of altcoins. Bitcoin doesn't seem to care

It does not matter if the coin is concentrated or decentralized, as long as bitcoin or cryptocurrencies are advertised, which is enough for bitcoin to require more people to know about Bitcoin and make it more liquid.

[xWolfx]

They won't affect in anything. At first, the people who believed in Bitcoin and made it grow was people who strongly believe in the technology and the decentralized way of doing transactions from now on.

The "Cryptocurrencies" issues by the authoritarian regimes are a desperate try to take down this amazing Bitcoin decentralized property, we can now see how desperate they are getting.

Doesn't matter what they do, if we the people continue to support Bitcoin with our time and holding, we will have complete freedom and decentralized currency one day, for everyday life.