Can bitcoin compete with CBDC's?

[aidoyoh]

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

[franky1]

central banks/commercial banks used for decades bridged subnetworks (visa/mastercard) for daily purchases where the base network of the BANKS are for savings/settlements

layer 1              layer 2
wire transfer vs tap&pay
bank account     visa/masterdard

CBDC is going to be no different a blockchain base layer for the central-commercial wires. and a second system for the person to person payments (via the base system in the background settling up those movements)

the difference between crypto and CBDC is  crypto=deflation cbdc = inflation

so think of crypto mainnets as pensions/savings but with more freedom to spend without banking limits and fuss, and where your savings/accumulations do give good returns on the long term(more groceries per $100 initially invested n crypto)... unlike banks where you end up getting to buy less groceries per $100 the longer you save

oh one last thing. bitcoin has many sub networks that offer the niche "fast payment"
but im afraid LN is not a bitcoin only feature and not the solution. its 7 years old and has had multiple "failures to launch"
there are other subnetworks that are under 2 years old that have locked up more liquidity and are doing more.

but bitcoin also needs to scale too as a base layer and not just push people to subnetworks

[pooya87]

To compete with something you have to be in the same category, it is like asking if a racing car can compete with a swimmer! They just don't work in the same sport. Bitcoin is a decentralized global currency that doesn't need a middle man while CBDC is the same centralized fiat system controlled by the same centralized authorities and suffers from the same problems (and some additional ones since it is CBDC).

In other words Bitcoin will remain the same alternative solution for those who want to reach financial sovereignty and exit the centralized monetary system even if it is a partial exit.

[takuma sato]

Bitcoin = bunker where you store long term savings
Bank with CBDCs = pocket change for fast spendings

Of course, I would tell moonboys to look into proper index funds as well for long term savings and don't go 100% BTC for long term savings. And definitely think twice before thinking about any altcoin as something you would park money long term.

[mk4]

Why do you think CBDCs are any different than your typical fiat currency? CBDCs are pretty much just fiat, but worse due to higher surveilance and likely higher governmental control.

[Poker Player]

You are asking if gold can compete with manure, which is adapted to the Internet age we are in. Either they don't compete because they have nothing to do with each other or if they do compete gold always wins.

I suppose there will be people very enthusiastic about CBDCs, as with everything that comes from the establishment, but people who know they are the same garbage as fiat, or even worse because they allow better government control as mk4 points out, we will be very careful.

[Majestic-milf]

 This question being asked is like giving CBDCs much importance. Bitcoin is an independent decentralized digital token that runs on a principle of transferring of control and without an established value or backing, whilst CBDCs has the backing of central banks!
 Also, since a CBDC is a project of the bank, it's liable to be susceptible to an EO 6102 attack, which makes it less safe compared to Bitcoin that can be stored on a wallet.

[franky1]

This question being asked is like giving CBDCs much importance. Bitcoin is an independent decentralized digital token that runs on a principle of transferring of control and without an established value or backing, whilst CBDCs has the backing of central banks!
 Also, since a CBDC is a project of the bank, it's liable to be susceptible to an EO 6102 attack, which makes it less safe compared to Bitcoin that can be stored on a wallet.

CBDC do not have backed value.. fiat had its EO 6102 attack decades ago and now banks dont want value store.. thus avoiding such attack ever again
they have utility laws (min wage/taxes/fines/debt) which are not economic number value.. but sentimental "values"(totally different things)

bitcoin does have economic value. and its not as simple as a eo6102 attack to remove it
all that an attacker would be creating is a new separate currency which no one likes(altcoin)
if governments pressured businesses to legal tender then altcoin currency and remove "currency" utility from the standard bitcoin.by those services 
then standard bitcoin no longer defined as a currency..(no government financial  jurisdiction) so it gets its freedom back and is defined again as private property. which governments cant then regulate as a currency because they took themselves out of such

businesses can be merchants instead of exchanges(like pokemon trading auctions)  and still offer swaps. without the regulation hassle of 'currency jurisdiction'

[worle1bm]

It's actually opposite as government are trying to compete with Bitcoin through introducing these CDBC and giving people digital payment access but it's the same like any other digital payment but the only thing they add on is Blockchain technology but if you say about competing with btc then there's no chance at all as we are comparing centralised token with decentralised coin so what do you think about it?

[franky1]

It's actually opposite as government are trying to compete with Bitcoin through introducing these CDBC and giving people digital payment access but it's the same like any other digital payment but the only thing they add on is Blockchain technology but if you say about competing with btc then there's no chance at all as we are comparing centralised token with decentralised coin so what do you think about it?

banks already had digital payment methods
banks are not competing against bitcoin
banks actually want to invest in bitcoin(see BIS reports for proposals for 2025)
banks actually want to service customers in-house and compete and destroy payment services like visa/mastercard

[harapan]

Not to be cynical about Bitcoin but Bitcoin is king it comes first when you think of a currency, if you browse through the forum thoroughly, you will see this particular question has been asked over again.

Central bank's digital currencies are just an upgrade of fiat currencies.

Bitcoin gives one the power to run its own nodes and transfer it between countries making it borderless, but central bank's currencies can not be transferred in a split seconds. You will have to exchange to another to send to that country.
Asides that looking for a merchant to run this can be quite stressful, with Bitcoin less stress is involved. This should be the last time you think of comparison between Bitcoin and Central Bank Digital Currencies.

[8rch7]

This question being asked is like giving CBDCs much importance. Bitcoin is an independent decentralized digital token that runs on a principle of transferring of control and without an established value or backing, whilst CBDCs has the backing of central banks!
 Also, since a CBDC is a project of the bank, it's liable to be susceptible to an EO 6102 attack, which makes it less safe compared to Bitcoin that can be stored on a wallet.

I totally agree with your opinion, CDBC is a bank project while bitcoin is a decentralized digital token, so we shouldn't compare bitcoin with CDBC, because CDBC has an Explorer or a book that can see everyone's transactions so that it is controlled so every time we make a transaction the government knows where to go of our transactions, of course we are vigilant including myself personally because our account data is tracked to who and where it went.

[Ayers]

You should ask the opposite question, can CBDC compete with bitcoin? Because bitcoins are created first, and CBDCs are being created. But it doesn't matter who is trying to compete, what matters is that CBDC is not comparable to bitcoin. To me, CBDC is no different from fiat money, it is just a digital version of fiat, and we already know that fiat is not comparable to bitcoin. Not only CBDC, but I believe in the crypto industry, no coin can compete or surpass bitcoin, bitcoin is king and always will be king of crypto.

[Outhue]

There is nothing to compete about here, CBDC is going to be the digital stable FIAT, why compare this with something that's comparable to GOLD? Also Bitcoin is volatile which creates opportunities for newcomers and also keeps the balance in different cycles. Do not expect too much of CBDC because it's just going to be like USDC.

CBDC will support crypto for sure though.

[franky1]

This question being asked is like giving CBDCs much importance. Bitcoin is an independent decentralized digital token that runs on a principle of transferring of control and without an established value or backing, whilst CBDCs has the backing of central banks!
 Also, since a CBDC is a project of the bank, it's liable to be susceptible to an EO 6102 attack, which makes it less safe compared to Bitcoin that can be stored on a wallet.

I totally agree with your opinion, CDBC is a bank project while bitcoin is a decentralized digital token, so we shouldn't compare bitcoin with CDBC, because CDBC has an Explorer or a book that can see everyone's transactions so that it is controlled so every time we make a transaction the government knows where to go of our transactions, of course we are vigilant including myself personally because our account data is tracked to who and where it went.

but if you research them you will see they dont have what you say
they are "2 layer" networks

a chain of blocks with multisig transactions where central and commercial banks set their reserves

commercial banks then (multisig) their reserves between each other to settle their commercial end payment route of their subnetwork funded reserves

below that they have the commercial banks delegated to police their own customers
in a subnetwork
(imaging the pegging mechanism like blockstream liquid network)
where they only report the suspicious transactions to authorities

and the customer payments between
the commercial bank-customer subnetwork as not a hop& spoke model like the failure of LN but instead its the hub('factory'/watchtower) model

where the hubs(commercial banks) give out inbound balance to customers

its no shocker why certain groups are playing around with certain idea's, where those idea's didnt actually form naturally from crypto guys. it formed from them being part of the corporate bank hyperledger design committees, injecting and influencing suggested proposals to the crypto community. and using crypto as the sand box test of open source coded programmable money
(in short cryptocurrency devs did not invent the buzzword "layer 2")
(in short the banking groups got cheap labour prototypes to emulate.. via crypto development, whilst we got delays and stalls in scaling solutions, while devs 'played possum' of bitcoin. whilst actively sandboxing idea's inspired by the corporate banking world)

[buwaytress]

Bitcoin was never meant to compete with anything, that's the thing I think I have never agreed with (when talking about Bitcoin displacing banks or killing PayPal or whatever).

For me, it was always an alternative. A way to pay when other ways don't work. A way to pay person to person. A way to pay when others won't let you.

These are all the three reasons I used Bitcoin, and others I know have. There wasn't an incentive. There was a reason.

[AbuBhakar]

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

No because Bitcoin has different structure than CBDC. CBDC is just a digital dollar and bankers just make it fancy with the use of their so called unique blockchain but it’s fiat that coming from thin air through unli print. While Bitcoin on the other hand is a complete decentralized currency that has limited supply. It can’t be affected by inflation due to to it limited supply and very good in the long run. Bitcoin is backed by PoW while CBDC is backed by politicians word alone.

They are incomparable and Bitcoin is the best in all aspect when it comes normal citizen benefits.

[Razmirraz]

CBDC is different from Bitcoin. Bitcoin is not managed by a central server and does not need a central authority or intermediary. A decentralized peer-to-peer payment system that is fully controlled by its users around the world makes Bitcoin very unique in that it gives its users complete control over their money.

CBDC is digital money that is issued and controlled by the central bank, the supply of which can be increased or decreased by the central bank to achieve economic goals. In addition, CBDC will become a representation of digital money as well as a symbol of state sovereignty sovereign currency. Because the systems are completely opposite, Bitcoin and CBDC will never meet and there will be no competition between the two.

[Fivestar4everMVP]

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.

The emergence of CBDC will not stop people from using bitcoin, this is because CBDC as we all know is no different from our traditional fiat currency, the only difference is that CBDC is the digitalized form of it,
- CBDC is still prone to centralized control like it is with our normal physical fiat currency
- CBDC is still prone to inflation, which can lead to loss of purchasing power, like it currently is with our physical fiat currency.
- CBDC can be frozen right there in your wallet by the Federal government or central banks they controls it, without your consent or permission, like it is with our physical fiat currency.
- with CBDC, your every transaction is monitored, you have no financial privacy of any kind because at all time, the central bank know how much you have in your wallet.
- with CBDC, when you send money to other parties, your identity is known to the central Banks, and so is the identity of whom ever you send money to.
- with CBDC, you can be denied access to your money any time and day, and there is nothing you can do about it if they refuse to grant you access to your money, who are you going to report to?.

But Bitcoin, Is the direct opposite of all that CBDC represent and stand for,
- Decentralized is bitcoin,
- Freedom is bitcoin,
- Privacy is bitcoin..

What more can one possibly ask for? Bitcoin has provided us with all that we need to live our lives free from other people controlling our finances lives, the ball is now in your court to either accept or reject.

[OcTradism]

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Bitcoin does not need to compete with CBDCs which are worse than Bitcoin. It does not have to join such competition because CBDCs are centralized, not decentralized currency.

With Bitcoin, you have a full decentralization and freedom which you can not find in any CBDC.

Since banks can control supply they can use inflation and other mechanisms to encourage spending.

CBDCs will have problems with inflation or hyper inflation which is worse than fiat currency in my opinion. With CBDCs, minting new supply is more easily than printing new circulating supply for fiat currency.

[GUIDE] All About Central Bank Digital Currency (CBDC)