Betting on bitcoin against Central Bank Digital Currencies

[Sanitough]

So I came across with this topic "Bitcoin or Central Bank Digital Currencies: Which is the Better Bet?" and I find it very interesting  as we have been taking about how banks will struggle due to continues printing of money especially to bail out the pandemic.

One way or another, digital currency is in our future. Since Bitcoin’s blockchain launched in 2009, more and more converts have become purists and accepted the idea that a decentralized currency without an authority figure overseeing its use is not only a distinct possibility, but possibly the way of the future.

That being said, people who are truly sold on the idea of living off of Bitcoin or any other decentralized currency are still in the minority. Most people are comfortable using credit and debit cards nowadays for cashless transactions, and many more still will likely support the idea of a government merely doing away with paper money altogether and offering its citizens a digital currency alternative that is still tied to central banks.

Odds are most people will use the latter if governments make it easy to do so. But the real question is, what is the better bet in the long run? Is it going to be easier or more fruitful to use Bitcoin and decentralized currencies? Or is the average person just going to settle for using government money that no longer requires paper or coins?

Answering these questions requires taking a slightly deeper look at the evolution of money and the idea of transferring value between one another.

source : https://www.bitcoingg.com/news/bitcoin-or-central-bank-digital-currencies-which-is-the-better-bet/


So what do you think, is it right to start betting bitcoin now?

[1714098371]

1714098371

[20kevin20]

While there's an evident increase in the number of people who are currently using Bitcoin, I doubt the number of purists and decentralized supporters is that large. Even I, as much as I love Bitcoin, have some alts I am still holding onto and sometimes use centralized services - which means I am basically not a purist either.

But even if everyone was non-purist, the main problem is that the mass would accept anything as long as it makes their lives more convenient. It's very easy to bait the mass by launching a CBDC with a "universal basic income"-like programme. The main requirement? Adopting the CBDC. The past 7 months have showed me the fact that, once people get the opportunity to stay home and get money doing nothing, it gets hard to go back to the less convenient life.

On the other hand, I am quite sure Bitcoin will continue to be supported by a significant and increasing amount of people and, although we'll have stupid laws and regulations, we'd still have the possibility to do stuff peer-to-peer as it was originally intended. There'll be people who are using Bitcoin the "regular" way (as in the worst way which can easily be analyzed) and others who'll go off the grid and will probably be targeted by authorities. I'll happily and proudly be part of the latter.

If I was to imagine the future, here's how I see it: Bitcoin becomes "inferior" (as in market cap, volume, tx fees and speed etc) to CBDCs while also becoming the preferred choice for those who seek more financial freedom. There'll probably be a time when the crypto markets will be heavily disrupted by CBDCs as they'll probably make a lot of traders confused the same way OP seems to be: do we choose CBDCs or BTC?

[Lordhermes]

So what do you think, is it right to start betting bitcoin now?

There is no need to betting bitcoin and central banks digital currencies. To be sincerely truthful, bitcoin usage is excellently becoming popular in the global ecosystem and so the other is decreasing slowly just as Western Union money transfer system is experiencing, bitcoin faster transaction beats it on a higher ground level. Could still remember when e-mail stopped the usage of post office, this in turn could possibly happen between bitcoin and Central banks digital currencies in the future.

[Darker45]

To be honest, I'm afraid the average person might just use what the government officially issues. And whether or not governments would fully do away with bills and coins, the replacement is actually no better. Digital fiat currencies make monitoring of transactions easier on the part of the authorities.

But if only the average Joe is concerned even a little bit of his privacy and freedom. If he is at least moderately critical of how the financial system is being ran on the basis of a handful of people's faulty decisions, he might be very grateful Bitcoin is an open option. 

[Sanitough]

To be honest, I'm afraid the average person might just use what the government officially issues. And whether or not governments would fully do away with bills and coins, the replacement is actually no better. Digital fiat currencies make monitoring of transactions easier on the part of the authorities.

I am seeing the same, we can bet on bitcoin but it doesn't mean that it will replace the fiat system, the benefit on betting on bitcoin is not actually as a payment system but the value of money since according to its movement, by demand the value rises which is not a guarantee for fiat system as they can continuously print money.

But if only the average Joe is concerned even a little bit of his privacy and freedom. If he is at least moderately critical of how the financial system is being ran on the basis of a handful of people's faulty decisions, he might be very grateful Bitcoin is an open option. 

I guess there are people who would understand how important bitcoin is and how it is so valuable in the future.
Slowly, the corrupt government practices will be revealed and if we don't see it coming, we will suffer its effect, so as early as now, I guess we should start considering to safeguard our money making bitcoin as the best option.

[Darker45]

To be honest, I'm afraid the average person might just use what the government officially issues. And whether or not governments would fully do away with bills and coins, the replacement is actually no better. Digital fiat currencies make monitoring of transactions easier on the part of the authorities.

I am seeing the same, we can bet on bitcoin but it doesn't mean that it will replace the fiat system, the benefit on betting on bitcoin is not actually as a payment system but the value of money since according to its movement, by demand the value rises which is not a guarantee for fiat system as they can continuously print money.

Wait a minute, I didn't know this is a gambling discussion. I thought this is a discussion comparing the pros and cons of Bitcoin and CBDCs and how both would fare in the long run. The excerpt you quoted doesn't seem to suggest that the word bet in the title is literally referring to a wager as in gambling.

I'd say the article is very poorly written, a total garbage in other words.

[hd49728]

Before you bet, let's look back at why are you (we) here in crypto market?

Some facts about bitcoin and Central Bank Digital Currencies (CBDC):

Decentralization:
- Bitcoin: Yes; CBDC: No

Limited and fixed total supply:
- Bitcoin: Yes; CBDC: No.

A public and transparent plan of currency issue:
- Bitcoin: Yes: CBDC: No.

More but with three facts, I choose Bitcoin and sure I will bet in Bitcoin.

[mk4]

Decentralization:
- Bitcoin: Yes; CBDC: No

Limited and fixed total supply:
- Bitcoin: Yes; CBDC: No.

A public and transparent plan of currency issue:
- Bitcoin: Yes: CBDC: No.

More but with three facts, I choose Bitcoin and sure I will bet in Bitcoin.

It's true that Bitcoin has an advantage on these categories, but let's not forget that a centralized digital currency also has it's advantages that are definitely going to be necessary for A LOT of people. Some being:

1. Reversible transactions(both an advantage and and disadvantage)
2. Not needing to backup any private keys
3. Non-volatile(this is a temporary problem for bitcoin, but yea)

etc. Basically, a centralized digital currency is going to be far more idiot-proof compared to Bitcoin.

While I'm personally bullish on Bitcoin, I think it's healthy to look at the disadvantage as well, and not be a perma-bull.

[yazher]

Judging with the current state of our society, most people prefer to use Central Bank Digital Currencies since they know it well and have been using it for a long time. But this doesn't mean their mind won't change for the better. if they only knew how using BTC can protect their privacy in the long run, everyone would even just try to use it. but the only disadvantage of using BTC is the slow and some unfixed transaction fees which make the ordinary people lose their patience when using it and probably won't last the day of using BTC as a means of payment.

[pooya87]

While I'm personally bullish on Bitcoin, I think it's healthy to look at the disadvantage as well, and not be a perma-bull.

these two are not contradictory ideas. you can be well aware of both pros and cons of bitcoin and still be a perma-bull on it. it is all the characteristics of bitcoin that are overwhelmingly better than anything else and shadow any disadvantages that it may have which is why it has such massive potential and keep making it rise in the long term.

[mk4]

these two are not contradictory ideas. you can be well aware of both pros and cons of bitcoin and still be a perma-bull on it. it is all the characteristics of bitcoin that are overwhelmingly better than anything else and shadow any disadvantages that it may have which is why it has such massive potential and keep making it rise in the long term.

Yea, I probably picked the wrong word; I just used "perma-bull" as it was the closest I could think of at the top of my head. What I was describing was people who look at everything as "this is good for Bitcoin", being blinded by the disadvantages of Bitcoin(and the advantages of the alternatives) because of their biases.

[Wind_FURY]

It's not a debate, CBDC changes nothing. It's still state-issued money that was made to maintain the status-quo.

Bitcoin is the separation of money and state, and your back-up/fall back once the state loses control of the economic and monetary system.

[Finestream]

It's not a debate, CBDC changes nothing. It's still state-issued money that was made to maintain the status-quo.

As a payment system, CBDC will gain more adoption compared to a decentralized system which is bitcoin, digital or paper money, still bitcoin will always lag behind as digital currencies made by government will always gain the trust of the people even though we may say that the government might not be able to run our economy effectively.

Bitcoin is the separation of money and state, and your back-up/fall back once the state loses control of the economic and monetary system.

I don't think so because in order for bitcoin to gain adoption, we need the government to regulate it, it doesn't matter if they are different (centralized vs decentralized) as in the end, no such thing exist in this world especially about finances that are exempted from regulation.

[jseverson]

I've always felt like the two aren't comparable. I mean, honestly, how many people actually use Bitcoin just because it's digital? Its biggest selling point has always been its decentralization -- I'm sure a lot of the average users don't really care about the concept, but it's what allows us to spend any way we like, or make even more money through price fluctuations. This is where Bitcoin's strength lies, and I don't think digital currencies can even begin to compete with it in this area.

I'm sure digital currencies will be used more frequently barring monumental fiat collapse, but that doesn't mean they're better, just that Bitcoin is typically used on other things.

[davis196]

CBDCs are still a concept and its' too early to proclaim their domination,but I'm pretty sure that 90% of the people will accept them.
The vast majority of the people are just conformists,they will follow the rules and accept every BS that is introduced by their governments/central banks.
Being a "Bitcoiner" means that you are not a part of the financially uneducated conformists and you are aware about the BS fiat money banking system.The true "bitcoiners" and supporters of a truly decentralized financial system will always remain a minority.

[Kakmakr]

The answer is actually straight forward...

Whatever the government force onto people, they would gladly accept... and by force, I am referring to the subtle policies/rules/regulations that are implemented to stop the competition and to enforce their own agenda.

You will see a load of GovCoins being developed in the future and a clear distinction being made between GovCoins and all other tokens and then legislation being implemented to protect GovCoins and also to stop the use of all other tokens.

GovCoins are cheaper to create than Fiat currencies, so this is going to happen sooner than you think. 

[avikz]

So I came across with this topic "Bitcoin or Central Bank Digital Currencies: Which is the Better Bet?" and I find it very interesting  as we have been taking about how banks will struggle due to continues printing of money especially to bail out the pandemic.

One way or another, digital currency is in our future. Since Bitcoin’s blockchain launched in 2009, more and more converts have become purists and accepted the idea that a decentralized currency without an authority figure overseeing its use is not only a distinct possibility, but possibly the way of the future.

That being said, people who are truly sold on the idea of living off of Bitcoin or any other decentralized currency are still in the minority. Most people are comfortable using credit and debit cards nowadays for cashless transactions, and many more still will likely support the idea of a government merely doing away with paper money altogether and offering its citizens a digital currency alternative that is still tied to central banks.

Odds are most people will use the latter if governments make it easy to do so. But the real question is, what is the better bet in the long run? Is it going to be easier or more fruitful to use Bitcoin and decentralized currencies? Or is the average person just going to settle for using government money that no longer requires paper or coins?

Answering these questions requires taking a slightly deeper look at the evolution of money and the idea of transferring value between one another.

source : https://www.bitcoingg.com/news/bitcoin-or-central-bank-digital-currencies-which-is-the-better-bet/


So what do you think, is it right to start betting bitcoin now?

If you have been using Net banking facility and plastic card facility since some time - you are already familiar with how a Central Bank issued digital currency will work. In real life, I have been living cashless since a long time now after the introduction of "UPI" in my country. If you don't know what UPI is, please Google it. It's a very simple method of transferring money at a very nominal cost. It has become so easy that even street vendors have started using it and the buyers have stopped using wallet because everything is there within their smartphone only. I don't think digital money will bring in any different experiences to the users.

Bitcoin is technically far more inferior than the current UPI system (please don't kill me for speaking the truth)! But bitcoin is also structured in a different way than traditional currency system even if it is digitalized.

If you want to make money out of money - bet on bitcoin but when it comes to usability, digital currencies are far ahead than bitcoin!

[hd49728]

It's true that Bitcoin has an advantage on these categories, but let's not forget that a centralized digital currency also has it's advantages that are definitely going to be necessary for A LOT of people. Some being:

1. Reversible transactions(both an advantage and and disadvantage)
2. Not needing to backup any private keys
3. Non-volatile(this is a temporary problem for bitcoin, but yea)

etc. Basically, a centralized digital currency is going to be far more idiot-proof compared to Bitcoin.

While I'm personally bullish on Bitcoin, I think it's healthy to look at the disadvantage as well, and not be a perma-bull.

The decentralization of Bitcoin makes serious debate when protocol need to be upgraded but the disadvantage can not wash away all advantages of BTC.

CBDC has its most shameful disadvantage: No privacy.

Governments have full rights to trace your CBDC transaction and they do know who you are and what you own. Bitcoin beats CBDC with privacy.

[buwaytress]

Decentralization:
- Bitcoin: Yes; CBDC: No

Limited and fixed total supply:
- Bitcoin: Yes; CBDC: No.

A public and transparent plan of currency issue:
- Bitcoin: Yes: CBDC: No.

Great points, and for the uninitiated, it might not make much issue... in fact, I know some people actually feel safer putting their money in a centralized entity. All for understandable reasons... I myself don't go all in on Bitcoin, can't afford to, I am not alone in this world so I also have to trust at least 2 governments via their bank guarantee scheme =)

[sheenshane]

Nothing's to bet on and they aren't comparable because they had different cons and pros that we should be considered on our side, but then, they are competing with wich better.

The concept of the CBDC's using digital currency probably is to compete for the cryptocurrencies but for us, they are both useful to us. But in this competition, Bitcoin has a better advantage than national digital fiat currency. The CBDC's currency is regulated by the bank, this meant established as money by government regulation, monetary authority. On the other hand, cryptocurrency is decentralized and it is governed by the majority of the community, powered by blockchain technology.

So, I think people choose with a better advantages and obviously Bitcoin has now a large adoption. Vast of majority when we talked about transaction online people concerned are privacy which is Bitcoin can able to do that.