Can Bitcoins kill Central Banks?

[ShowOff]

Large corporations will choose banks over Bitcoin because they have a lot of money and they need it to be safe.

That was then, but now what? What do you think about Microstrategy and Tesla who have invested huge sums of money in bitcoin?

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.

Bitcoin trading and investing will not force traders and investors to get involved especially for those who are not comfortable with market fluctuation. Bitcoin was not created to be stable because supply and demand will always affect its price to fluctuate. Anyone can choose to trade and invest if they are willing to accept the risk.

[carlfebz2]

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.

Not a mistake but a common perception on where people do really always believe that they are always on the top of the chain or simply in everything and when crypto or bitcoin did exist then

it isnt really intended for it to kill Central banks because even if its really intended to be created to be something like that then it isnt really still possible.

Bitcoin was never intended to kill central banks but people do really have this kind of impression or views because of its main properties which i cant really blame off.

[ampu]

Large corporations will choose banks over Bitcoin because they have a lot of money and they need it to be safe.

That was then, but now what? What do you think about Microstrategy and Tesla who have invested huge sums of money in bitcoin?

A few billion dollars is still a pretty modest number when they have a lot of money. I mean to spend most or all. I highly recommend Microstrategy's active purchase because they've bought a lot, almost as much as most of the company's assets.
Smaller companies only invest a few million dollars to several tens of millions of dollars. That shows timidity because I know they want USDT more. After all, USDT is accepted quickly around the world.

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.

Bitcoin trading and investing will not force traders and investors to get involved especially for those who are not comfortable with market fluctuation. Bitcoin was not created to be stable because supply and demand will always affect its price to fluctuate. Anyone can choose to trade and invest if they are willing to accept the risk.

A lot of people are not knowledgeable about trading. So they won't risk their money. Here we are in the minority to trade and take risks. It is very different from what you are talking about.

[Victorycoin]

Bitcoin can't kill central banks bitcoin is a digital currency and central banks are considering using these digital currencies. The central bank is owned by the government and after bitcoin everyone owns these banks in times of crisis people can transfer their money from banks to the central bank creating bank runs that solve problems. Even in ordinary times, if a large number of bank deposits are transferred to the central bank will have easier access to cheap funds which will improve economic growth.

[CaptainCrapper]

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, bitcoin is a digital system for economic zone and the central bank is a manual system of the economic zone so I think bitcoin will not kill banks. But I think bitcoin will lead to a digital currency system bitcoin will change the manual system as soon as possible.

[husencoe]

The answer is of course no, because banks are subject to the government system in a country while bitcoin cannot be controlled by a person or government in any country, and of course the government will not allow bitcoin to replace the existing payment system in that country.

[ShowOff]

Smaller companies only invest a few million dollars to several tens of millions of dollars. That shows timidity because I know they want USDT more. After all, USDT is accepted quickly around the world.

I'm not sure they really want USDT over bitcoin. USDT is not one of the assets that would make investing a large company like Microstrategy safe in the long term. USDT can still be frozen, but bitcoin cant be frozen because bitcoin is completely decentralized and is not controlled by anyone. Also, investing in a stablecoin like USDT will not benefit you in the long run due to its relatively stable price. If a large company wants a profitable investment with a good level of security and decentralization, then the choice is bitcoin.

[libertariandude]

Many people here argue that government wouldn't allow people migrating from the traditional financial system and use cryptocurrencies, but the question is: how would they stop this movement?

The creation of government-made digital currencies will only help people familiarize with cryptocurrencies.

With the development of technology and cryptography, the government will become more and more incapable of controlling the economy.

And yes, this may lead to the end of central banks (not all banking), which are useless and fraudulent institutions anyway. When people realize what central banks have been doing to their money, they will prefer cryptocurrencies.

[swiftbits]

In the situation right now, I see how Bitcoin and Central banks co-existed with each other; popular e-wallet might not be operated decentralized, but them being regulated by central banks while adopting crypto makes it reliable enough. It made crypto convertible to multiple goods and transferrable to multiple money systems and firms. It's safe; the downside is that the services are only available for verified accounts, which I understand.

[celot]

In the situation right now, I see how Bitcoin and Central banks co-existed with each other; popular e-wallet might not be operated decentralized, but them being regulated by central banks while adopting crypto makes it reliable enough. It made crypto convertible to multiple goods and transferrable to multiple money systems and firms. It's safe; the downside is that the services are only available for verified accounts, which I understand.

This is what should happen. It would be much better for bitcoin to coexist with banks because that's how it should be. They complement each other. What bitcoin doesn't have can be done by banks and vice versa. They have their own function. so let them coexist and complement each other much better.

[CapGelatik]

The answer is of course no, because banks are subject to the government system in a country while bitcoin cannot be controlled by a person or government in any country, and of course the government will not allow bitcoin to replace the existing payment system in that country.

It's true that cryptocurrency and Banks are very different and of course the government will not be able to control it like you said,
and I think this is still an interesting discussion for the future about whether in the future bitcoin will be legalized as a means of payment or not,
let's just follow the progress

[Bollexz1]

From my own perspective, I don't think bitcoin will kill central banks rather they'll keep working for each other, in the sense of exchanging one for the other for swift transactions to be perfectly executed.

[Ozero]

Bitcoin has no chance to destroy the central banks of states. It is useless for cryptocurrencies to compete with states, of which central banks are a part. States with their repressive system of suppression and regulation will still be stronger. Therefore, cryptocurrency needs to learn how to coexist peacefully with banks and their currency. This is the only way cryptocurrencies can survive.

[kapalmabur]

Bitcoin has no chance to destroy the central banks of states. It is useless for cryptocurrencies to compete with states, of which central banks are a part. States with their repressive system of suppression and regulation will still be stronger. Therefore, cryptocurrency needs to learn how to coexist peacefully with banks and their currency. This is the only way cryptocurrencies can survive.

It is definitely difficult for crypto to replace the central bank,
so I think it's too naive to expect Bitcoin to destroy and replace central banks right now,
even so the possibility could happen because it's hard to predict so just see in the future

[Alisha-k]

The answer is of course no, because banks are subject to the government system in a country while bitcoin cannot be controlled by a person or government in any country, and of course the government will not allow bitcoin to replace the existing payment system in that country.

It's true that cryptocurrency and Banks are very different and of course the government will not be able to control it like you said,
and I think this is still an interesting discussion for the future about whether in the future bitcoin will be legalized as a means of payment or not,
let's just follow the progress

even if Bitcoin is legalised and centralized, do you think it can replace the central bank?? I don't think so, both Bitcoin and the central bank have their roles to play in an economy, it may be similar but I doubt one can replace the other.

[Captain Corporate]

Even if bitcoin in the future is used as a legal payment, this will still not make bitcoin a substitute or even replace the position of a bank in a country.
The relationship between the government and banks is already quite close and we cannot make this seem trivial.
The purpose of bitcoin is not to replace them and I quite agree with what you say not to be naive because replacing the bank is an impossibility.

 Banks could just easily take crypto instead of fiat (or with fiat) and they could do exactly what they are doing right now. Am I crazy to think that there is absolutely nothing that stops any bank in the world to start accepting crypto just like exchanges do? They may or may not do it under their bank name, but they could just start an exchange that is tied to the bank. Like HSBC is a bank and you may or may not deposit bitcoin into it, but even if you can't, they could do like HSBCex, type of thing and make it work there? You could withdraw to your bank account easily, or even connect the two so you could have a card where you could pay with crypto?

[DoublerHunter]

Bitcoin will not kill the Central Banks, rather I think they will adopt bitcoin. Perhaps not so soon but in due course when they see no other way out than to join or we will continue to see it as we have done now.
Centralization has had so much power that they cannot bend to decentralization. There are also the great elites that have their great tentacles and love absolute control.

^ The fact that they think BTC is a big threat to the banks and the financial system probably is the reason.
There is a lot of talk about BTC destroying banks, but that is not feasible at all. Because no one has yet regulated BTC, no law can be enacted to overthrow the fiat system, and governments may easily wipe bitcoin from their financial systems if they chose to prohibit its use in their country. BTC will never kill central banks, and has no power of deleting or killing central banks and governments will never allow this to happen.

[Lanatsa]

Bitcoin will not kill the Central Banks, rather I think they will adopt bitcoin. Perhaps not so soon but in due course when they see no other way out than to join or we will continue to see it as we have done now.
Centralization has had so much power that they cannot bend to decentralization. There are also the great elites that have their great tentacles and love absolute control.

^ The fact that they think BTC is a big threat to the banks and the financial system probably is the reason.
There is a lot of talk about BTC destroying banks, but that is not feasible at all. Because no one has yet regulated BTC, no law can be enacted to overthrow the fiat system, and governments may easily wipe bitcoin from their financial systems if they chose to prohibit its use in their country. BTC will never kill central banks, and has no power of deleting or killing central banks and governments will never allow this to happen.

It was never created for that kind of intent or goal but rather giving us an option on making transactions without 3rd party involved which is only its main real use case and I don't know on why people do really end up on presuming that it could kill banks?

Even on my dreams it wouldn't really happen because government wouldn't really be dumb on making such step for it to happen and they could indeed easily impose bans and restrictions
which could really block out total adoption but lets not presume about replacing or something because it wouldn't happen no matter what.

[ancafe]

I even thought the opposite, that the central bank was able to make bitcoin die. however, we know that the power of the central bank is enormous, so I don't think bitcoin will be able to replace that. even more so if the bank is a centralized thing, which is totally legal to cooperate with the state. i think that bitcoin can only be an alternative. when bitcoin beats the central bank, bitcoin will be the main payment, and that's very hard to happen.

[dbc23]

Bitcoin is not a fiat killing innovation and can't kill Central banks both financial options is needed and we are gradually moving along with both gradually . So far Bitcoin is  just a technology that has proven double spending can be avoided using a well structured p2p network and nothing more. In as long has laws and order still exist the central banks still have full control of the financial institutions in the various countries