Bitcoin to trigger central bank collapse

[Sebas.tian]

Bitcoin cannot trigger central bank to collapse because the founder of bitcoin, Satoshi Nakamoto did not create bitcoin to collapse central bank. Government will not allow anything that will collapse fiat money to stand in the country than to do everything possible to eliminate such thing in the country.

Here are some of the things Bitcoin cannot trigger central bank collapse:

1• Authority: The government has the authority to make sure there is money calculation all over the state. The government don't need to take any permission from anybody before money can be in calculation.

2• Equipment: The government has all the equipment to produce and re-produce any amount of money the government know that can save the government central bank not to collapse. Since government is not control by decentralized currency no way decentralized currency can collapse centralized currency.

[bitcoin_paypal]

Or central banks will just adopt blockchain tech and will make other crypto illigal. Thats sounds more realistic for me

[Yaunfitda]

Or central banks will just adopt blockchain tech and will make other crypto illigal. Thats sounds more realistic for me

They have been into blockchain technology for many years now. Because after all banks processed tons of data and they could really take advantage of blockchain in this matter. There are even arguments that it can save them a lot of money as well if they are going to adopt it.

I don't understand what you mean make other crypto illegal. But in any case, bitcoin will not trigger any collapse of this old system.

[sujon5]

Otherwise. 2008 banking collapse "triggered" Bitcoin invention. If the financial crisis hadn't happened, Satoshi would have never invented Bitcoin.

[Webetcoins]

Bitcoin cannot trigger central bank to collapse because the founder of bitcoin, Satoshi Nakamoto did not create bitcoin to collapse central bank. Government will not allow anything that will collapse fiat money to stand in the country than to do everything possible to eliminate such thing in the country.

Here are some of the things Bitcoin cannot trigger central bank collapse:

1• Authority: The government has the authority to make sure there is money calculation all over the state. The government don't need to take any permission from anybody before money can be in calculation.

2• Equipment: The government has all the equipment to produce and re-produce any amount of money the government know that can save the government central bank not to collapse. Since government is not control by decentralized currency no way decentralized currency can collapse centralized currency.

I think there is also laws that prevent such a thing from happening as well, and the fact is that governments could decide to print or even burn money in order to decide what is going to happen with the economy of that nation makes sure that there is no problems at all.

For example one nation could print a ton of money, get bitcoins with it, make their own currency less valuable because they printed so much but overtime when bitcoin becomes a lot richer, they could gradually burn their fiat to make it more worthy eventually, and that way we could honestly live a lot better, obviously it is not going to be overnight success, but nations could use crypto to actually HELP central banks, which is a proof that it is not here to collapse central banks, it is just here and how you use it will decide on what it will do and if you use it smartly it will be of great help.

[AndySt]

Or central banks will just adopt blockchain tech and will make other crypto illigal. Thats sounds more realistic for me

They have been into blockchain technology for many years now. Because after all banks processed tons of data and they could really take advantage of blockchain in this matter. There are even arguments that it can save them a lot of money as well if they are going to adopt it.
I don't understand what you mean make other crypto illegal. But in any case, bitcoin will not trigger any collapse of this old system.

I absolutely agree that blockchain technology can be used in different areas and is not an exclusive inseparable part of bitcoin, and the use of blockchain in the banking sector does not pose any threats to cryptocurrencies at all. In fact, cryptocurrencies and central banks may well co-exist peacefully and there seems to be less hostility from financial regulators, but we must understand that in any case, under any conditions, the main priority for central banks will always be fiat currencies.

[Abiky]

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.

Exactly. It's practically impossible for central banks to collapse in their entirety since they're directly tied to the government. As long as governments force the use of Fiat currencies for mainstream payments, central banks won't be going anywhere. Bitcoin is only an alternative currency for those who want financial freedom. It'll never replace banks, because they're too big too fail. The only way this could happen is if governments adopt Bitcoin and other decentralized cryptocurrencies as the standard medium of exchange. But that's only a dream since governments want something they can control or manipulate. And we all know that Bitcoin goes against what has been established in the first place.

Nonetheless, CBDCs will ensure central banks will last for long in this highly-evolving world. They will adopt crypto/Blockchain tech for their own benefit. It may turn out that both Bitcoin and CBDCs will co-exist for many generations. There will be a clash between the decentralized world of crypto and the centralized world of bankers. People will ultimately decide whenever they'd want to support one side from the other or both. Just my thoughts

[konflikkastil]

I do not think this is ever going to happen, not when we still the Fed. I mean the govt, that's their own way of securing the economy of any country. The government of any country through the central bank of the country makes rules and regulations to monitor the ins and outs of the country's economy. When the economy is not controlled what do you think will happen to such economy. This is one of the reasons banks can never collapse. Even if other small banks do. The apex bank can never at all. And if we still have the apex bank, definitely we will surely have the local banks around. Being it commercial banks or the Microfinance banks they will also be operating.

[Argoo]

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) 

How can Bitcoin cause the collapse of the banking system? Bitcoin does not threaten its existence at all. If the banking system felt this, then the states would immediately react to it very sharply, up to the prohibition of cryptocurrency. Despite various optimistic statements on this matter, the cryptocurrency has no chance of resisting the states. Therefore, it is better for a cryptocurrency to try to coexist peacefully with the currencies of states and their banking system.

[electronicash]

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) 

How can Bitcoin cause the collapse of the banking system? Bitcoin does not threaten its existence at all. If the banking system felt this, then the states would immediately react to it very sharply, up to the prohibition of cryptocurrency. Despite various optimistic statements on this matter, the cryptocurrency has no chance of resisting the states. Therefore, it is better for a cryptocurrency to try to coexist peacefully with the currencies of states and their banking system.

they coexist together now. the problem with some countries is that the central banks or the banks own the state not the other way round which is why there is no collapse that will happen. the government will still have their control back when they finalize their CBDC. cryptocurrency isn't losing though because it's still going to be adopted as well. it's the tax that is going to be their next target which could be terrifying of all.

[ven7net]

This short crypto-economic piece explores the probability and impacts of Bitcoin triggering a collapse of our central banking systems and a reordering of the world's wealth structure.

Pre-Bitcoin, individuals were all trapped in a system where the Federal Reserve and other central banks around the world could create money at will and force people to purchase assets and consumer items so they would avoid inflation.  When fiat is saved, the velocity of money slows and economic activity grinds lower - for this reason the planners wished to encourage spending, and not saving, through quantitative easing.

Now we are seeing the wealthy, investment banks and treasury departments of companies OPTING OUT of this monetary riddle by taking their money "out of the matrix" and hiding it in Bitcoin to send their value into the future.  They do this because the value of assets today is too high, yet their cash and bonds are being eaten by fiat printing so they have to invest in something, anything.  Before they had no rational spending options and had to buy ever more overvalued real estate, stocks, and other financial instruments, but now they have a much better option: buying Bitcoin. 

The difference now is printing fiat does not encourage people to spend their money, the reverse is actually true when that lever is pulled, it encourages purchasing and HOARDING of Bitcoin in much the same way people hoarded cash during the great depression.  The more central banks print fiat, the more popular Bitcoin becomes as the smart money escapes the legacy monetary system, but it also works the other way around: the more Bitcoin that is bought, the more central banks are forced to print due to fiat leaving the system for Bitcoin, and a negative feedback loop ensues. 

To throw gas on the fire, this disappearing act of fiat into Bitcoin is starting to accelerate since the 2020 halvening event in May.  Not a day goes by when we don't hear of multiple billions being sunk into Bitcoin by a new financial institution, and much fewer Bitcoin are being sold than bought.  The Federal Reserve is seeing weakness in the economy and Congress announced they are printing another 1 trillion dollars to hand out to Americans; on the same day Bitcoin skyrocketed to all time highs.  At a certain point, the exponential flow into Bitcoin will begin to affect the fiat money supply by reducing it significantly.  This will cause deflation and the central bank will print orders of magnitude more fiat, which encourages ever more panicked Bitcoin purchases to preserve wealth, and the cycle continues.

This "Bitcoin Option" represents the leaks in the system our monetary planners didn't anticipate.  They either still do not see them or feel that they are impossible to stop due to the completely decentralized nature of Bitcoin.  There is no CEO to drag before congress, no central server to shut down.  These leaks may ultimately end up disrupting the entire banking system through hyperinflation with Bitcoin as an accelerant, and without a shot being fired.

I see a very uncomfortable future for those who don't own Bitcoin.  The transition to the new system is going to impoverish many of the middle class that weren't impoverished before.  The price of a whole coin is accelerating away from the financial reach of the middle class now and will continue to do so ($24,000 USD per coin as of today).  As Bitcoin appreciates higher and higher, the US dollar and other currencies continue to debase themselves trying to catch up in overall value, the planners fill the gas tank faster as it continues to pour out onto the road. 

In the end, a complete reordering of the entire global economic system will need to occur as the world economy stalls in its depreciating orbit and is caught in the gravity well that is Bitcoin, the new world reserve currency.  Millions of people will lose their fixed income, cash and bonds to hyper-inflation while Bitcoiners become the new global wealthy, leisurely floating over the tidal wave of devalued dollars, in an ocean of paper money.  The Federal government disappears like the Soviet Union as their financial instruments fail completely and there is a physical struggle for control as the power structure decentralizes.  Crypto exchanges become our new economic pillars that control transfer into and out of the financial matrix as people desperately attempt to secure a handful of Satoshis, as the price of a full Bitcoin moves completely out of sight. 

The haves and the have nots are reordered, into the early adopters and the late comers, those with Bitcoin and those without.

I have also recently seen a lot of information about the collapse of the current financial system and about the way out of this situation through Bitcoin, but all this casts doubt on this information, since usually no one talks about what will happen next. What is the point of those who want to change something to shout about it? I believe that the whole story with the collapse of the Baknov system is more of an information cover. It is likely that just someone really wants to get all the money in the world and the question arises, who benefits from it? It is beneficial for banks to control the financial system and people, making money on this constantly, but here we see the luring of big money. There is an opinion that they want to mitigate the collapse of the dollar system at the expense of cryptocurrencies, or even raise money and cash out the US debt, but destroy the banking system? I don’t think this is exactly the case, although I could also be wrong.

[el kaka22]

^^People keep saying that something will destroy economy and it never really does, economy is already a horrible situation at the current moment so why would having a competition would ruin it? It should help it, that is the free market capitalism supported all these years. If banking is so bad that even a crypto currency type of experimental currency can destroy it, maybe that means banking should be destroyed and rebuilt? I mean after all crypto is nothing, it is a decentralized coin and if your company can't handle that maybe you should be gone.

Back in the day people were slaves, when slaves revolted people said without slaves companies couldn't make money, this is only 100-150 years ago (and there is slavery even today) what happened? Jeff Bezos has 200 billion dollars so I guess without slavery (even though it is close to slavery situation) it can continue. Do not mistake what media and companies are telling you with truth, crypto will improve the world and not destroy it.

[Mauser]

^^People keep saying that something will destroy economy and it never really does, economy is already a horrible situation at the current moment so why would having a competition would ruin it? It should help it, that is the free market capitalism supported all these years. If banking is so bad that even a crypto currency type of experimental currency can destroy it, maybe that means banking should be destroyed and rebuilt? I mean after all crypto is nothing, it is a decentralized coin and if your company can't handle that maybe you should be gone.

Back in the day people were slaves, when slaves revolted people said without slaves companies couldn't make money, this is only 100-150 years ago (and there is slavery even today) what happened? Jeff Bezos has 200 billion dollars so I guess without slavery (even though it is close to slavery situation) it can continue. Do not mistake what media and companies are telling you with truth, crypto will improve the world and not destroy it.

Yeah money and debt is the new form of slavery these days. Which would mean that eventually the people had enough and start rebelling against the system, like it happened with slavery. When I look back at my grandparents, they saw 4 different type of currencies in their lifetime.  A new currency doesn't always mean a collapse of the central banks but in most cases they go hand in hand. If we look at the super rich and how fast their wealth is growing, while the average salary is not chancing much over the last 10 years, it is just a matter of time until the system will collapse.

[tyz]

Otherwise. 2008 banking collapse "triggered" Bitcoin invention. If the financial crisis hadn't happened, Satoshi would have never invented Bitcoin.

To understand how far away Bitcoin is from triggering anything: Gold has a market cap of around $10 trillion. Bitcoin has just one tenth of that. That means one Bitcoin would have to rise to around $500k to even begin to reach the value of all gold. And even then, it would have to rise much much further to even come close to all fiat money. Because only then would it be able to harm the monetary system.

[SaiyanSS3]

Central bank would have their trust morally bankrupt first, there is bunch of ignorant would still stick with them, in the end they provide the means for life to many people with stimulus checks.

[pankowri]

Why we mix these two things because central bank and cryptocurrency have their nature to serve. We need both of them now. Central bank operates the whole country money systems and controls inflation or deflation etc. Bitcoin never liable for central bank collapse while it may be an element of loss demand.

[sana54210]

Why we mix these two things because central bank and cryptocurrency have their nature to serve. We need both of them now. Central bank operates the whole country money systems and controls inflation or deflation etc. Bitcoin never liable for central bank collapse while it may be an element of loss demand.

Yeah, this is another anti-bitcoin speaking point. Do not look at people who say things like "bitcoin is so awesome, it will ruin banks!!" they are not trying to say bitcoin is good, they are trying to secretly say "if bitcoin goes any bigger, banks will be gone and all of our money with it and it will be chaos" but they can't say that exactly so they hide behind things looking good for bitcoin and bad for everyone else.

Bitcoin will not ruin banks, there is banks that has 100+ different currencies in fiat, why wouldn't they add another currency called bitcoin? They will do that as soon as governments let banks become crypto exchanges basically. If one bank can hold both dollars and euroes that means they can hold bitcoin as well, all banks can do that. Which is why bitcoin is not a danger to banks, sure it could be for the small ones who ignore bitcoin, but all the ones that accept the fact bitcoin is too big to ignore will be fighting for it.

[Yayis]

It's not really the case, actually, big investors and banks are now betting on bitcoin too. Bitcoin is like gold, scarcity and it's status is the only reason why one btc cost so much.
However, it is not a realistic option unless there is a fork that can make it scalable. Blockchain on the other hand and altcoins may indeed make the financial world more decentralized but we are not there yet.

[awik p]

Why we mix these two things because central bank and cryptocurrency have their nature to serve. We need both of them now. Central bank operates the whole country money systems and controls inflation or deflation etc. Bitcoin never liable for central bank collapse while it may be an element of loss demand.

I think the changing times will continue, there is nothing wrong in this. of course, every field must be able to adapt to a change. between the central bank and bitcoin have the opposite nature. I think the government will keep the central bank, but will consider crypto anyway

[sujon5]

What can trigger the central bank collapse? It's foolish CB policy, not Bitcoin. When 2008 financial crisis happened, Bitcoin didn't exist.