Can Bitcoins kill Central Banks?

[Republikcoin.com]

Bitcoin was created to fight central banks but not destroy it.  banking is a business that has been around for hundreds of years and has become a pillar of the economy of many countries, while Bitcoin is just over 10 years old.  surely banks and governments will try hard not to die with the growth of Bitcoin.  i really believe that later when Bitcoin adoption gets stronger, the government will be friendly with Bitcoin and give up fighting it.

I have read the white paper and nowhere it says that it is created to fight the central banks ....

But the reality is that the technology behind Bitcoin is always compared to the technology adopted by banks. Bitcoin's decentralized nature is always compared to the centralized nature of all systems in the world, in the general sense that banking is included in one of the centralized systems.
The emergence of the term "Bitcoin to fight the bank" is what we created ourselves. Which is as if we want to prove that Bitcoin is better than banks in terms of security and transparency as well as the best win-win solution for customers and also the banking sector.

[Twinkledoe]

Bitcoin was created to fight central banks but not destroy it.  banking is a business that has been around for hundreds of years and has become a pillar of the economy of many countries, while Bitcoin is just over 10 years old.  surely banks and governments will try hard not to die with the growth of Bitcoin.  i really believe that later when Bitcoin adoption gets stronger, the government will be friendly with Bitcoin and give up fighting it.

I have read the white paper and nowhere it says that it is created to fight the central banks ....

But the reality is that the technology behind Bitcoin is always compared to the technology adopted by banks. Bitcoin's decentralized nature is always compared to the centralized nature of all systems in the world, in the general sense that banking is included in one of the centralized systems.
The emergence of the term "Bitcoin to fight the bank" is what we created ourselves. Which is as if we want to prove that Bitcoin is better than banks in terms of security and transparency as well as the best win-win solution for customers and also the banking sector.

However, even if we prove that bitcoin is better than the banks, still large population will stick to traditional method of banking system. Their trust is different when it comes to new system like bitcoin. They are confident dealing with their banks, and I don't see any major change from the individuals who are relying with their banks. Just be grateful that bitcoin is really expanding its scope of service, but replacing traditional banks, not seeing this in our lifetime.

[AndySt]

Bitcoin is a virtual currency that uses peer-to-peer technology to operate with no central authority or institutions like Banks. By its very own definition, Bitcoin sounds well positioned to kill central banks. Could it? This topic of central banks and their potential replacements are complex with a lot of valid arguments supporting it and against it.
The digital era may be against central banks, but it all not that easy as it has a strong foundation and six centuries of history. The first central banks, often helped nations in funding wars and other initiatives that are supported by the government. The British redefined the concept of central banking in 1844 with a legislative effort that laid the foundation for an institution that had the power to issue currency.

You could say one of the advantages of Bitcoin, or maybe a different cryptocurrency later down the road, is it might move us towards a global currency that is much more traceable than cash. If you really want to stamp or corruption and lower the amount of inequality within the world, the first step needs to be preventing the rich from hiding their money (or at least making it much much more difficult). If they only had a bitcoin-like object to use as currency then they would be forced to declare it and have it taxed fairly. You'd have a public ledger of how truly unbalanced the world is and it might force politicians globally to unite in disgust at the obscene quantities that just a few people currently reside over.

Absolute transparency does not mean the eradication of all the problems of the world, because social inequality and unfair distribution of income is much higher than any mechanistic aspirations to change the world. This comes from all sorts of processes that occur in the world around us, and I am not sure that there are normal solutions that would eventually suit all the inhabitants of such a huge planet as Earth. Capitalism has grown out of all the modern economic systems of the world and assumes a free market and competition between the players of this market. Are you sure that absolute transparency of transactions will lead to the solution of all problems, when there is one huge force in the face of the state and which can decide whether these transactions are legal in the opinion of this state? And the state sees everything perfectly and tracks everything. Oh, the naive ones...

[Marvell1]

Bitcoin was created to fight central banks but not destroy it.  banking is a business that has been around for hundreds of years and has become a pillar of the economy of many countries, while Bitcoin is just over 10 years old.  surely banks and governments will try hard not to die with the growth of Bitcoin.  i really believe that later when Bitcoin adoption gets stronger, the government will be friendly with Bitcoin and give up fighting it.

I have read the white paper and nowhere it says that it is created to fight the central banks but it is a narrative that everyone wants to believe. It is a payment system which is decentralized and you can expect them to the be an alternative assuming that the central banks will not allow any decentralized currency to overpower them and there is no point in fighting against the authority.

I am also expecting that the governments around the world will be friendly towards the market but i am sure the government will enforce mandatory KYC so that the market becomes transparent.

Bitcoin was created not to fight the bank.
Bitcoin is a decentralized financial project.The purpose of bitcoin is cross-border payments, speed and cheap transaction fees.
If the government is bitcoin friendly then we have more options along with fiat. It would be great if bitcoin and fiat could support each other and co-exist.

[Sithara007]

If you are talking about ordinary banks, then I would have said that there is a possibility. But central banks are mentioned here and they are an essential part of the government system. If you kill the central bank, then you are destroying the government's control of the economy. I am not sure whether any of the regimes would allow that to happen. And in case that occurs, then there will be complete chaos and anarchy. This is like uncharted territory, and no one knows what the situation will be like without the central banks.

[Argoo]

If you are talking about ordinary banks, then I would have said that there is a possibility. But central banks are mentioned here and they are an essential part of the government system. If you kill the central bank, then you are destroying the government's control of the economy. I am not sure whether any of the regimes would allow that to happen. And in case that occurs, then there will be complete chaos and anarchy. This is like uncharted territory, and no one knows what the situation will be like without the central banks.

Therefore, this cannot even happen theoretically. Bitcoin and other decentralized cryptocurrencies are incapable of causing significant damage to the banking system. Cryptocurrency and the banking system as part of the system of state power must coexist, and this is primarily needed by the cryptocurrency itself. If we assume that the cryptocurrency will pose a threat to the existence of banks, then the states, of course, will not stand aside. They have very strong levers of persuasion and coercion, and in general, states are capable of destroying anyone who encroaches on their system of organization. Therefore, nothing threatens the banking system. It has existed and will continue to exist.

[19Nov16]

Bitcoin was created to fight central banks but not destroy it.  banking is a business that has been around for hundreds of years and has become a pillar of the economy of many countries, while Bitcoin is just over 10 years old.  surely banks and governments will try hard not to die with the growth of Bitcoin.  i really believe that later when Bitcoin adoption gets stronger, the government will be friendly with Bitcoin and give up fighting it.

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Right, the presence of bitcoin and crypto is certainly a comparison for the public against the central bank, the fact is that the rapid development made many central banks afraid and asked the government to ban bitcoin.

[conected]

Bitcoin was created to fight central banks but not destroy it.  banking is a business that has been around for hundreds of years and has become a pillar of the economy of many countries, while Bitcoin is just over 10 years old.  surely banks and governments will try hard not to die with the growth of Bitcoin.  i really believe that later when Bitcoin adoption gets stronger, the government will be friendly with Bitcoin and give up fighting it.

.


Right, the presence of bitcoin and crypto is certainly a comparison for the public against the central bank, the fact is that the rapid development made many central banks afraid and asked the government to ban bitcoin.

- Central banks are also not small names that can be easily teased, they have the power to overturn this future outcome because they are having a very clear advantage over bitcoin, from the role of the system as well as relationships, its influence is extremely large while bitcoin is just a young guy and lacks time. On the battlefield, an enemy is baring its teeth at you and you think the central bank will allow bitcoin a chance to attack it like this crazy thinking, try to domesticate bitcoin or will directly abolish it, that is the power of central banks

[Charot12345]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

Agreed. It will not kill banks. As long as the banks are not going to allow it to be the main currency it will not happen. It was decentralized so there's no way they can regulate it so they will never accept something that they can't control. Bitcoin adoption is getting stronger and bigger so it will not kill central banks but it is much better for central banks to plan or developed a system that will enable them to work with crypto or accept crypto in the future that can benefit everyone.

[suryana]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

Yes I agree with this. There is no way bitcoin can replace banks, banks are services that have regulations and are controlled by the government. There is a clear audit bookkeeping. This is very different from free bitcoin. So I think being part of that complementarity is the best.

[Davidvictorson]

Without central banks, bitcoins won't exist. They are both in a different class of their own. None have to replace the other. Why should they? Irrespective of what we thing of the government and global financial institutions. I don't mean to sound pessimistic but if bitcoin "kills" central banks the world would experience chaos like never before besides I believe this was never the intention by Satoshi when he/they created bitcoin. We really have to chill and stop sounding like the group on Reddit Forum that want to see bitcoin die.

[King Khaizan]

The trend of investing in digital currency assets is still on the rise. Although crypto movement is considered to have high volatility, crypto is predicted to be an investment instrument for the future.
Cryptocurrencies are not yet widespread and now only a few types are known by people, but people are currently trying to compete to get them and make crypto more famous like the dollar.

This makes the monetary authority, namely the central bank in a country, increasingly threatened due to the exploding prestige of digital currencies, so that inevitably the central bank must be active and follow the 'flow' of digital currency trends.










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[songchunlai]

Technology brings efficient and fair production capacity.

[inoes]

Without central banks, bitcoins won't exist. They are both in a different class of their own. None have to replace the other. Why should they? Irrespective of what we thing of the government and global financial institutions. I don't mean to sound pessimistic but if bitcoin "kills" central banks the world would experience chaos like never before besides I believe this was never the intention by Satoshi when he/they created bitcoin. We really have to chill and stop sounding like the group on Reddit Forum that want to see bitcoin die.

Bitcoin is currently present as an alternative currency, especially the digital currency. In terms of function, Bitcoin is considered to only be able to fulfill some of the functions of currency, namely the means of payment, commodities whose value is a general consensus of the results of the acceptance and trust of the public. Like gold, diamonds, banknotes, stocks in general. And Bitcoin has expensive values because there are real money stored by Exchange which is backups from Bitcoin prices. The Bank Cryptocurrency (Dex) model serves as an alternative. Bitcoin/Alt is the money.

[Qikiye]

Simply put, Bitcoin will never be able to replace the Central Bank because the Central Bank is fully government-sponsored. Bitcoin is also a currency that is a virtual document Existence is based on faith only. So the government will never allow Bitcoin to take a place above the Central Bank.

[ziyaaa]

If central banks insist on resisting cryptocurrencies or digital currencies, I think that they can bankrupt and never be the same again. Digital currencies are our future. There will be stable digital currencies and governments by themselves will develop these currencies. Bitcoin will still be maintaing itself and central banks will start working with only digital currencies after a point.

[STT]

because the Central Bank is fully government-sponsored

Its a mistake to believe government is the most powerful force possible.   The largest factor in an economy will always be natural effect, the economy is a natural phenomena we might modify but not alter permanently.   Economics should not be taught or practiced as an extension of politics and by force as a norm.  We know in engineering, sciences all kinds of disciplines that humans are the pupil not the master vs natures forces, this too also applies even to human dynamics in economics and finance.   Sadly we have to learn the hard way and many like posters above believe government has perfect control and ability to turn tides when they can mitigate or delay at best.

[Kusman]

For now, central banks are needed for us to convert our coins to fiat and use them while buying something etc.. Because not all places accept Bitcoin payment method for now. But in the future, this will definitely change. Because we will start using digital currencies only rather than fiat. Then, there will be no need to convert coins to fiat. But this time, central banks can still exist as long as they have digital currencies also in their system.

[ampu]

Bitcoin and central banks are two different systems.
Bitcoin is a decentralized financial system and users are solely responsible for all transaction risks.
The bank is a centralized system and users are guaranteed risk in transactions by the bank.
Large corporations will choose banks over Bitcoin because they have a lot of money and they need it to be safe.
Not everyone is willing to participate in Bitcoin as it is a currency with high exchange rate fluctuations.
I think Bitcoin and banks will exist side by side and in fact, we are seeing banks accepting Bitcoin in their system.

[QuickAccount]

I dont think that bitcoins will replace banks. People dont like to leave what they are familiar with, and even then a good amount of people think that bitcoin is a 1337 mad haxxor currency and would never even touch it. People dont like change.