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

[Walrus1]

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?

Venezuela is falling apart. The people use btc but the government wants its own backed by oil. That government could fall apart, it means nothing. Since Chavez Venezia has been suffering

[Hydrogen]

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?

I would guess there will be a campaign made to bury the ideas of algorithmically regulated supply introduced by bitcoin. There will also be an attempt made to spam the public with anti limited supply rhetoric in terms of the total number of coins which can be mined in a crypto currency. The divide between ethereum with its infinite/variable supply and crypto currencies like bitcoin or litecoin which have a predetermined and limited supply will become greater as time passes.

They'll likely try to find ways to endorse crypto currencies with infinite supply while limiting those with limited supply to create a false precedent that all crypto currency is defined by a capacity to be "printed without limit" the way ethereum has.

Decentralization and arguments which support it being a good thing likewise will probably be discouraged.

Whether or not we'll have alternate media which is skeptical or questions the views propagated by the mainstream is anyone's guess.

[Sergey190785]

crypto-currencies that are issued by states depend on the country's GDP. And bitcoin does not depend on any country, so it has value all over the world

[Nadirbil]

You're all so carried away by cryptocurrencies that you don't see simple things. Venezuela with the help of its cryptocurrency is trying to get out of under US sanctions.

[squatter]

They won't much, I suppose, as they are shitty-fiat currencies.

Do you think laypeople understand this? I don't.

There's been a lot of conflation among "digital currencies", "virtual currencies" and "cryptocurrencies." Most dumbed-down explanations and media coverage emphasize the intangible and virtual nature of coins and their lack of backing, rather than conveying why the technology works and why it has economic value.

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.

I agree with that. But I also think most people are plebs who don't know what decentralization is or why a deflationary supply matters.

To address the OP: States will issue digital currencies to take the luster away from real cryptocurrencies. They'll exploit ignorance about the technology to get people to ignore decentralized coins. To some extent, they will succeed, but there's no way they can actually stop the Bitcoin train. Legit cryptocurrencies will continue to flourish.