Can bitcoin compete with CBDC's?

[Abiky]

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.

Bitcoin can never compete with CBDCs. That's because it's decentralized, whereas CBDCs are not. Comparing both is like comparing apples vs oranges. Most people will prefer a CBDC over BTC because of its stability. Not only that, but a CBDC has the full backing/support of the government. Bitcoin will only remain as an alternative currency for those who want to "escape the system". I'm fine with that as long as it works as intended.

Who needs to beat digital Fiat (CBDC) when Bitcoin can succeed on its own? A sovereign currency like Bitcoin cannot be stopped no matter what. It enables people to be their own bank. Given that both governments and central banks are powerful entities, it seems to me that BTC will live alongside CBDCs for generations. Who knows what's next in store for the pioneer cryptocurrency? Just my opinion

[CryptoYar]

The CBDC's nothing to do with bitcoin.

These are two different things, bitcoin gives you financial freedom, and it can not be controlled by any central authority/government. While CBDCs are controlled by the central banks no matter even if they are created on blockchain but still they are state-owned currency and they can mint more whenever they want as they usually do with paper currency.

[TheGreatPython]

The CBDC's nothing to do with bitcoin.

These are two different things, bitcoin gives you financial freedom, and it can not be controlled by any central authority/government. While CBDCs are controlled by the central banks no matter even if they are created on blockchain but still they are state-owned currency and they can mint more whenever they want as they usually do with paper currency.

I think they can do something. Remember they are created by the people who are against Bitcoin. People behind them can encourage the public to use their own creation and not Bitcoin. Much more if they ban BTC on their country. CBDC and Bitcoin do also have their own similarity and that is both runs in the blockchain. The only main difference is that one is decentralized and the other is centralized.

Even though CBDC has their own advantages and that is they are stable and safe, I mean safe because they are regulated. BTC can still compete with them because BTC do also has its own charm and that is its volatile nature, where people can use it as an asset for trading or investing other than using it as a currency and most of all, it is safe because we control our own money.

[Xal0lex]

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.

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

[Vaskiy]

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.

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

CBDC were just an advanced form of fiat. Just because it is getting connected through technology it doesn't mean CBDC is good and functions in a better way. Bitcoin is different from CBDC and we can't have a comparison. When it comes to working CBDC is the centralized fiat which gives direct control to the government. To keep the people out of reach from the cryptomarket, countries have begun to develop their own CBDC.

[Psynthax]

both has their own niche, I'd say CBDC will instead compete with stablecoins in general where it seems they have somewhat similar utilities, Bitcoin and other altcoins like ethereum will always have their own different niche that is because of their volatile nature and fluctuation that could be beneficial for investments, so I guess comparing both is like futile attempt of comparing something that isn't even should be compared with each other.

[Abiky]

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

People are avoiding CBDCs because they already have cash (paper money). But when that is removed from circulation, you can bet they will switch to Bitcoin for the preservation of privacy. As you've said before, CBDCs will enable governments and central banks to have a full scope over your financial activity. There will be zero privacy and less freedom over the way you handle your money. The only ones that will benefit from the new digital cash system are none other than banks and governments alike.

Bitcoin won't directly compete with CBDCs (due to the way it was designed), but at least it will prove to be an alternative for those who need it the most. Things would've been worse if Satoshi didn't invent Bitcoin in the first place. The world is quickly shifting to the digital era, so I wouldn't be surprised if CBDCs take over the world within 1-2 decades from now. Just my opinion

[livingfree]

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.

Actually, there are too many. You'll be unattached to the centralization that CBDC has. While CBDCs focus is all about being a payment to the local where it's being implemented and created.

Bitcoin can be used in all countries, globally. There's no need for a country's government to be part of it because it is as-is. No central authority and can't be frozen by any governing body that implements the CBDC.