Governments will collaboratively create their own crypto-currency in 10 years

[fred1111]

Governments will not accept to see their currency lose value, but they will also realize that they can't ban bitcoin. For them, there is only one option:

Central banks from large countries (China, USA, etc..) will work together to create a proof of stake crypto-currency (similar to PPC). Bitcoin will probably survive this, but it will prevent it from reaching valuations such as 1M$.

So when do you think this will happen, and if not, why not?

[1713267177]

1713267177

[glendall]

Certainly feasible.

Oh Canada might be leading the pack, hats off to that.

http://business.financialpost.com/2013/09/19/canadian-mint-pushes-ahead-in-murky-world-of-crypto-currency-with-mintchip-project/

I believe the banking cartels that set American policy, namely Goldman Sachs, will see what they have to lose and fight crypto's though.  But other smaller countries, more progressive places....Sweden, Germany, Iceland, etc, will get on board.

Anyone who just studies economics for more than 2 hours (I believe) would realize that our current world finance system is really messed up, has lost a link to reality due to fiat currencies being leveraged one-dollar-to-a-hundred to by banks, and currency that has a backing, whether it is gold or enforced digital scarcity via something like Bitcoin's design, is just a more logical, superior way to hold value somewhere as opposed to money you printing up by the spare 100 billion that gets given to the banking cartels on the regular to keep running.

Or current financial system just does not add up. You needn't look any further than many of the world's supposedly richest nations looking at going bankrupt if they weren't able to print up money from thin air. Once we get hyper-inflation the house of cards will fall (or sooner).  Not to mention in 20 years our average work week should be like 15 hours a week, not 40, and most jobs will be more economically done by robots and computers, not people, and we'll see some serious problems why some humans make salaries more than a 1000x times other humans' salaries.

[bitcon]

if it does, the greedy banksters tx fees will still be so high that everyone will use a cheaper alternative.

[fred1111]

I believe the banking cartels that set American policy, namely Goldman Sachs, will see what they have to lose and fight crypto's though.  But other smaller countries, more progressive places....Sweden, Germany, Iceland, etc, will get on board.

I think it is obvious that they will, but what type of crypto-currency will they choose? Will they work together (like a new Eurozone?) or try to compete with the international recognition that Bitcoin is getting by working with as many central banks as possible?

Whatever happens, traditional currency (fiat) will die, the only question is when.

[chr0npiles]

I'm pretty sure I've read a few conspiracy theories stating that the NSA actually created bitcoin and is using it as one giant experiment/new method of individual tracking.  Lol.

[11ams]

1) Network effect

2) Canadian Mint let the domain name they were using for the project expire. Take that how you will.

3) Assuming they only have one option is foolish. The more likely scenario is that they heavily regulate all points of fiat/BTC exchange.

[Impaler]

A government isn't going to use a 'proof-of' type systems if they were to go digital, it would be more like ripple.

[faizaa123]

i see strong-arm regulation before i see them adopting a rogue form of currency...

[knarzo]

if it does, the greedy banksters tx fees will still be so high that everyone will use a cheaper alternative.

Or maybe people will be forced to use it. Austerity leads to more pro gov laws and of course more police as we see in europe now. Gov wants to be save from the annoying taxpayers.

http://steph.es/blog/2013/11/un-post-de-600-000e-1-de-2/

[Sindelar1938]

Govts have to tread warily, regs too stringent is just gonna accelerate the flight to crypto

But there will be a fight back, that's for sure

[hilariousandco]

Governments will not accept to see their currency lose value, but they will also realize that they can't ban bitcoin. For them, there is only one option:

Central banks from large countries (China, USA, etc..) will work together to create a proof of stake crypto-currency (similar to PPC). Bitcoin will probably survive this, but it will prevent it from reaching valuations such as 1M$.

So when do you think this will happen, and if not, why not?

They might try, but why would people even need to use this new gotv. currency and not just stick with BTC?

[johnyj]

That will not be politically neutral, so basically no difference than fiat money today

[Ibian]

i see strong-arm regulation before i see them adopting a rogue form of currency...

We have a winner.

Governments today are greedy and incompetent. They will try to use traditional methods to control something beyond their control and they will fail. By then everyone on this board should be a millionaire so even if they eventually manage to crash the system, we still have the option of cashing out in time.

[Ekaros]

Network effect is nothing, when you can get multiple big retail chains in the loop and start paying in the new currency.

Which I see the realistic future if cryptos are the way to go. Why give wealth to someone else when you can keep it for yourself...

[AnonyMint]

Governments will not accept to see their currency lose value, but they will also realize that they can't ban bitcoin. For them, there is only one option:

Central banks from large countries (China, USA, etc..) will work together to create a proof of stake crypto-currency (similar to PPC). Bitcoin will probably survive this, but it will prevent it from reaching valuations such as 1M$.

So when do you think this will happen, and if not, why not?

They might try, but why would people even need to use this new gotv. currency and not just stick with BTC?

Because the masses want their shit from Amazon.com (Transactions Withholding Attack takeover of Bitcoin described at that link).

And they don't care about your idealistic bullshit, blah blah blah. They want the damn "click here to get pizza" button.

[PenAndPaper]

I want to se people accusing governments for premine! 

[Siegfried]

Why would anyone use the government digital currency?

[AnonyMint]

Why would anyone use the government digital currency?

Can't you read what I posted 3 posts above yours?

[exstasie]

Governments will not accept to see their currency lose value, but they will also realize that they can't ban bitcoin. For them, there is only one option:

Central banks from large countries (China, USA, etc..) will work together to create a proof of stake crypto-currency (similar to PPC). Bitcoin will probably survive this, but it will prevent it from reaching valuations such as 1M$.

So when do you think this will happen, and if not, why not?

They might try, but why would people even need to use this new gotv. currency and not just stick with BTC?

Because the masses want their shit from Amazon.com (Transactions Withholding Attack takeover of Bitcoin described at that link).

And they don't care about your idealistic bullshit, blah blah blah. They want the damn "click here to get pizza" button.

True, but its a competitive market out there for merchants, so they will accept whatever currency people are using out there to gain an advantage.  They also care most about their bottom line, so if they can use a payment method that will reduce their fees by 1%-2%, then they'll just at that option.

[Siegfried]

Why would anyone use the government digital currency?

Can't you read what I posted 3 posts above yours?

Yes, but I do not find it convincing. By the time the government gets around to creating a digital currency, bitcoin will already be commonly used for online purchases of all kinds. Considering bitcoin's other advantages - secure store of value, anti-inflation, frictionless global transfers - I see no way that a government digital currency wins the argument.

[AnonyMint]

Why would anyone use the government digital currency?

Can't you read what I posted 3 posts above yours?

Yes, but I do not find it convincing. By the time the government gets around to creating a digital currency, bitcoin will already be commonly used for online purchases of all kinds. Considering bitcoin's other advantages - secure store of value, anti-inflation, frictionless global transfers - I see no way that a government digital currency wins the argument.

I guess you are not aware of the concentration of Bitcoins which makes your assumption impossible to attain and that majority transactions are SatoshiDice and perhaps much of the rest are coin mixers or FX to/from dollars.

Most people transact most of the time through some large corporation such Amazon, WalMart, McDonalds, etc.. Those cartels (who are of course aligned with the government) will control when the masses start using an electronic currency. And they can do the Transactions Withholding Attack to take control over Bitcoin.

[AnonyMint]

You all have no idea how fast this is all going to transition to 666 and 1984:

http://www.activistpost.com/2013/11/social-logins-for-government-services.html

[Martijnvdc]

Isn't the US dollar already a "digital currency"? It's not backed by anything.
The biggest difference between the USD and bitcoin is that it's government controlled and there's a paper version of it.
If a government creates it's own cryptocurrency, what difference would there be between their current currency and their new cryptocurrency?

[Siegfried]

Isn't the US dollar already a "digital currency"? It's not backed by anything.
The biggest difference between the USD and bitcoin is that it's government controlled and there's a paper version of it.
If a government creates it's own cryptocurrency, what difference would there be between their current currency and their new cryptocurrency?

My thoughts exactly.