Bitcoin to trigger central bank collapse

[Lanatsa]

Collapse?

It is a thing that wont really happen to banks, as long government do exist then this institution would stay.
Its better not to expect too much with crypto about taking down banks because this is really an impossible thing
to happen.

There might be some advantages but doesn't mean that it will totally crippled out typical banking system.
Still lots had been trusting the good old fiat days rather than on completely trusting the whole
crypto system.

So let it be just like that.

[asih201]

It seems unlikely that crypto will trigger the collapse of the central bank, because there is a government behind the central bank and that will keep the central bank going.

[Obito]

It seems unlikely that crypto will trigger the collapse of the central bank, because there is a government behind the central bank and that will keep the central bank going.

Exactly, and the only thing that could collapse a central bank are wars that have a scorch earth policy. Or a virus that wipes out the population. Or if the people started to do a revolution to topple the big bankers. Cryptocurrency is more of a slow death of banks rather than a sudden collapse which is far better because no deaths will happen and the big bankers will suffer although the smart and sly ones wouldn't because they know when to abandon ship.

[arwin100]

It seems unlikely that crypto will trigger the collapse of the central bank, because there is a government behind the central bank and that will keep the central bank going.

Exactly, and the only thing that could collapse a central bank are wars that have a scorch earth policy. Or a virus that wipes out the population. Or if the people started to do a revolution to topple the big bankers. Cryptocurrency is more of a slow death of banks rather than a sudden collapse which is far better because no deaths will happen and the big bankers will suffer although the smart and sly ones wouldn't because they know when to abandon ship.

It's hard to think why people always think about this way since the legal entities will protect this thing happen since central bank controls all and I believe that bitcoin will first collapsed if government will see it a threat in traditional financing system since for sure they will impose a hard ban of its usage. So for now better not to think about this things and just focus on how the technology works as well to focus on how we can earn with bitcoins.

[adzino]

I doubt bitcoin will ever be able to "collapse" the central banks. This is something that will have a huge (negative) impact on the country. And no government in the world will allow their central banks to collapse. If needed all government of the world with either unite to ban the usage of crypto currencies saying its a danger to the economy of the country or they will find a way to integrate the who bitcoin system with the central bank and take good control of it.
Either way, the central bank isn't going to collapse.

[Obito]

~snip

It's hard to think why people always think about this way since the legal entities will protect this thing happen since central bank controls all and I believe that bitcoin will first collapsed if government will see it a threat in traditional financing system since for sure they will impose a hard ban of its usage. So for now better not to think about this things and just focus on how the technology works as well to focus on how we can earn with bitcoins.

What I mean by people is the other 99% that are governed by the 1% which means it includes the military and the police. The only threat that I can think of when it comes to bitcoin is not the outright ban of it but a total collapse of the Internet infrastructure which is totally impossible. Outright ban doesn't stop the people from using it, humans have a very strange affinity with tenacity you know.

[whyrqa]

~snip

It's hard to think why people always think about this way since the legal entities will protect this thing happen since central bank controls all and I believe that bitcoin will first collapsed if government will see it a threat in traditional financing system since for sure they will impose a hard ban of its usage. So for now better not to think about this things and just focus on how the technology works as well to focus on how we can earn with bitcoins.

What I mean by people is the other 99% that are governed by the 1% which means it includes the military and the police. The only threat that I can think of when it comes to bitcoin is not the outright ban of it but a total collapse of the Internet infrastructure which is totally impossible. Outright ban doesn't stop the people from using it, humans have a very strange affinity with tenacity you know.

Perhaps I will seem to be a complete optimist, but nevertheless, I am sure that the government already does not have any possibilities to completely ban Bitcoin, since Bitcoin has already entered big business, and not only is an object for activity in the cryptocurrency market for the common person. The government has a very precarious position in this situation. Most likely they will make decisions for control, but not a ban.

[FanEagle]

I doubt bitcoin will ever be able to "collapse" the central banks. This is something that will have a huge (negative) impact on the country. And no government in the world will allow their central banks to collapse. If needed all government of the world with either unite to ban the usage of crypto currencies saying its a danger to the economy of the country or they will find a way to integrate the who bitcoin system with the central bank and take good control of it.
Either way, the central bank isn't going to collapse.

People do not know what they are talking about. Central banks are not things that collapse, they are things that exists to control the finances of a nation, think of it like finance part of a company, sure you could build a teddy bear and sell it but there will be an accountant checking everything up, so "central bank" can't collapse, the whole nation would collapse, just like how accountant can't bankrupt, the whole company can.

They just like to talk about the fact that central bank may lose its power over the finances of the people if the people decide to use crypto. That makes more sense, sure it won't be collapsing or even if it does people with bitcoin will be more ready, think of yourself like someone who held a lot of bitcoin in Venezuela before the crash and after the crash your money still worths a ton of things, you are not poorer, the "collapse" of central bank means exactly this.

[iv4n]

Centralized...decentralized... which one is better?

I think that recent happening with GameStop shares is a big thing! Wall Street, Robinhood, stock market, reddit... You have many things about that everywhere! So I will not share links, and probably most of you from here are familiar with that situation and what happened!

It's interesting what's happening around the world in the last 10 years, to not go any further and off-topic! People (we all, me and you...) are learning about what internet can do, and what crypto can do... we learn what is what, and how to trust the information from any source. It's new time, and while we here (who are in crypto for longer) know more about terms like centralization/decentralization, free market, DeFi, all sorts of ICO's and IEO's (new project funding), how to trust someone from internet (no matter how far or close it is)... and many, many other things... still a lot more people needs to learn about them, and to find a way to apply them in real life!

I think we are heading to some sort of decentralization... banks (maybe there's a chance if all banks in the world can unite in one bank!) can't compete with crypto, in the way they are designed! A new time is coming, I think that central bank collapse started with the invention of Bitcoin, but in the end the entire crypto will participate in that... I think it's already happening, some smart contracts can do better and faster than any bank, higher efficiency/less cost and available to all 24/7!

[Argoo]

I think anyone who believes such an article to be somewhat delusional or naive. Bitcoin is an asset, it has valuable and it is apparently useful as a form of currency - as we can see from the popularity of it's recent rise. However at a fixed amount of 21 million units, with however many satoshi's and to however many decimal places. Bitcoin can barely cope with the capacity demands of speculators and a small fraction of all the people who would need access if it became the sole global currency unit. Bitcoin has its place, and that place is a small portion of a diversified portfolio and it certainly has its limits. It would never be able replace something like the US dollar in its current form.

At least If we talk about the vitality and future prospects of the banking system, then first of all it is necessary to say that banks are, first of all, an organization or structure that provides specific services. Based on this, the banking system will be able to adapt to new realities. And if the cryptocurrency will have mass adoption all over the world, then the banks will provide all kinds of services not with the dollar, but with the cryptocurrency. Although the dollar Apparently is not going anywhere either.

This is a rather narrow mindset. Banks are not just a structure that provides individual financial services. It is actually a part of the state that serves the economy of this state. Therefore, the state will toughly protect its banking system. Banks will provide services in cryptocurrency only if it is beneficial for them. At the same time, states will remove any obstacles to the normal existence of their banking system.
Therefore, under the protection of the state, the banking system is not threatened by anything, including bitcoin.

[Amejoaquim]

It could be.

Like it or not, the vision of a world in which these currencies liberate money from the clutches of central banks.

And i believe in the future almost everyone will stick with the crypto money.

[Kong Hey Pakboy]

TL;DR. Anyway, this is next to impossible. The only reason that may cause central banks to collapse is when governments themselves collapse. Otherwise, central banks will always be there. For as long as money is designed, issued, and controlled by governments, central banks will stay relevant. For as long as monetary policies are crafted and subsequently implemented by governments, central banks will exist. There may be changes in the design of central banks but they remain essentially the same.

Now, Bitcoin is not created to bring down governments. If at all, it prefers that money is out of their control.

That is true-- given that the economy is running around the world with the use of fiat currencies since long time ago, even if cryptocurency will be used by almost everyone, I believe fiat currencies will stay the same and will still be used by the countries since it is regulated by the government. Cryptocurrency as a main currency used in everything, that may be possible but central bank will not be lost still.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

[Abiky]

Collapse?

It is a thing that wont really happen to banks, as long government do exist then this institution would stay.
Its better not to expect too much with crypto about taking down banks because this is really an impossible thing
to happen.

There might be some advantages but doesn't mean that it will totally crippled out typical banking system.
Still lots had been trusting the good old fiat days rather than on completely trusting the whole
crypto system.

So let it be just like that.

I don't think Bitcoin will cause the collapse of central banks in the mainstream world. They're still too big to fail even with the damaging effects of the COVID-19 pandemic. Not even crypto/Blockchain tech's innovations have taken central banks' place in the mainstream economy. As long as governments depend on central banks for the issuance and management of Fiat money, they won't be going anywhere. Bitcoin and other cryptocurrencies will only remain as an alternative than a replacement to the existing monetary system.

Nonetheless, nothing is set in stone. If banks collapse, then governments might head back to Gold or adopt decentralized cryptocurrencies as the new standard of money. But the odds of this happening are very slim. With banks announcing they'll launch CBDCs (Central Bank Digital Currencies) of their own, it seems to me that they'll be here to stay. They'll just adapt themselves to the latest trends in technology. Bitcoin and other cryptocurrencies will co-exist with the new digital Fiat system for many generations. Just my opinion

[doomloop]

It seems unlikely that crypto will trigger the collapse of the central bank, because there is a government behind the central bank and that will keep the central bank going.

True. Neither the banks can trigger a crypto collapse nor the vice versa is true because while crypto are powered by the people and controlled by us, banks are always under the government and a collapse of banks would mean a collapse of the whole country to be honest.

the only thing that could collapse a central bank are wars that have a scorch earth policy. Or a virus that wipes out the population.

If that happens it also means a collapse for Bitcoins because to operate and trade Bitcoins we do need humans and if everyone is dead we don't have any possible way of keep Bitcoins alive either. As much as I like Bitcoins, I believe there is no possible scenario where the banks would collapse but the Bitcoins won't.

[Abiky]

If that happens it also means a collapse for Bitcoins because to operate and trade Bitcoins we do need humans and if everyone is dead we don't have any possible way of keep Bitcoins alive either. As much as I like Bitcoins, I believe there is no possible scenario where the banks would collapse but the Bitcoins won't.

I don't think Bitcoin will collapse after central banks' demise in the mainstream world. While Fiat is used as a unit of account to measure Bitcoin's price, people can decide to change this in the long run. By the time central banks collapse, people will be using Bitcoin as the new unit of account. It will enable a truly decentralized economy like never before. But I doubt central banks will collapse anytime soon, as they're too big to fail. As long as governments depend on central banks for the issuance of new Fiat money, they won't be going anywhere. Central banks will eventually adapt themselves to the latest trends in technology. Already, some countries' central banks have announced the launch of CBDCs of their own. This will keep Fiat in-par with crypto for years on end.

Nonetheless, it seems to me that both banks and crypto will co-exist for many generations. Neither Bitcoin or central banks will be going anywhere. There will be a clash between the centralized and decentralized economy. People will get to decide which economy to support in the long run. Remember, Bitcoin was never meant to replace banks. It was created to serve as an alternative to the current monetary system empowered by central banks and governments worldwide. Banks will only become more powerful as they gain greater surveillance with the launch of CBDCs. Just my opinion

[Kakmakr]

The moment when Bitcoin really threaten the Fiat system, governments will step in to "ban" it and to protect it. We saw massive bailouts to Banks and the traditional fiat economy when it nearly collapsed in 2018. Do you think for one moment that governments will allow any disruption to take place, without them fighting back?

We will see much stronger regulations and laws being promulgated in the future, to protect Fiat currencies. The other option that they will have, is to develop their own "GovCoin" (They will use tax payers money to fund it and developers will queue to get those government tenders) 

[LUCKMCFLY]

Currently I see this scenario very far, since this scenario has already been envisioned or is being lived in countries like Venezuela, where its currency is totally useless, where all economists have failed their solutions and it really is a very unusual economy .

Inflation is huge, and despite everything people looked for alternative economies, the dollar, the Colombian peso is what moves the most in the country, the bolivar is what its currency represents, it is nothing more than that, having Bitcoin or Any cryptocurrency, the particular economy improves, bitcoin cannot threaten the FIAT system, governments always find solutions to find liquidity for them by devaluations, in a very difficult case to control, the first thing they will do through the banks is to put playpens .

In this, what can increase is the debt, that problem comes from many years ago, long before Bitcoin was invented.

[tygeade]

It could be.

Like it or not, the vision of a world in which these currencies liberate money from the clutches of central banks.

And i believe in the future almost everyone will stick with the crypto money.

Pep talk always feel good but the truth is that as long as governments exist there will be banking system and hence there is no way the central banks can collapse just because an anonymous asset is dominating the market. Imagine if dollar was doing good will other countries collapse? No way, similarly if an asset is going good doesn't mean others will collapse.

Actually for once we also need to consider that the value of Bitcoins is determined by how much fiat we are getting from selling the bitcoins and if there are no banks or no currency then I am just unable to even imagine how it would all go. Are we going back to the barter system that was in place years ago? I don't think this is happening ever.

[FanEagle]

Collapse?

It is a thing that wont really happen to banks, as long government do exist then this institution would stay.
Its better not to expect too much with crypto about taking down banks because this is really an impossible thing
to happen.

There might be some advantages but doesn't mean that it will totally crippled out typical banking system.
Still lots had been trusting the good old fiat days rather than on completely trusting the whole
crypto system.

So let it be just like that.

Central banks are not business' that should be kept alive and can bankrupt, they are just organizations that basically controls a big portion of a nation's economy, but there is really nothing they could bankrupt, there is really no problem for them since there is no profit or loss for them.

Sure they could "profit" by providing quick loans to huge banks and make money from it, and reissue that profit when the nation needs money without disturbing the market and creating huge inflation, that is a way it could profit, or they could print countless amount of cash and drop the value of it which could be considered failed economy, but they do not bankrupt like a business, they just become good or bad that's it. Zimbabwe and Venezuela has one, they are still printing money and there is really nothing to care about. Long story short I agree that Central banks can never collapse.

[AndySt]

Long story short I agree that Central banks can never collapse.

The central banks of individual countries may experience huge problems, but they are usually not a catalyst for the financial problems of the state, because central banks usually perform a purely technical role of regulating the financial processes of the state. As long as the current system of government exists, there will continue to be a system of fiat currencies with central banks, and the opposite means only chaos and an emergency.