How will the new Unicoin affect Bitcoin?

[Jet Cash]

The DCMA ( Digital Currency Monetary Authority ) announced the release of the Unicoin at the end of last month. This is intended to be the supernational  digital currency unveiled by the IMF, and it is intended to incorporate it into the SWIFT payment system ( well that's what the blurb seems to imply). It is probably going to create some fun, as there is already a Unicoin which is the official currency of Unicorn Hunters. Another consideration is the association with Unicorns. Most people seem to think of them as horse fairies spraying stardust, but the truth is far more sinister. In the days when wild horses were captured and forced into slavery, it took considerable effort to capture a horse and domesticate it. It was far easier to select a dominant domesticated stallion and attach a secure horn on its head. This could then be released close to a herd of wild horses. The stallion would then join the herd, and rapidly becone the alpha male leader because of the horn. After six months, the lead stallion could be called into a corral, and the entire herd would follow trustingly. This techniques has been demonstrated recenty by a group of undergrads in the US. Thus it can be seen that Unicorn projects are really projects that are designed to lead an unsuspecting public into captivity and slavery.

So how will this affect Bitcoin? Obviously Bitcoin is an alternative to the government control via payment restrictions. The government can't stop Bitcoin directly, and restricting exchanges with the fiat system could lead to an alternative payment system to the detriment of the national currency. I believe that government agencies and banks have been buying large blocks of Bitcoin to restrict its supply, and to create volatility. They will probably continue to do this to make it unattractive to businesses.

What can we do to help stabilise Bitcoin as it enters its first stages of maturity.

[Solosanz]

What can we do to help stabilise Bitcoin as it enters its first stages of maturity.

Use DEX, use DEX, use DEX, avoid CEX, avoid CEX, avoid CEX.

It seems like the project is want to aim for any cryptocurrency including Bitcoin will use their network e.g. Unicoin network, if it's happen, then they're control the customers real coins and let their customers to use their fake coins.

But most people are currently prefer to use CEX over DEX, so the government will control majority of the coins since most Bitcoin holders don't really care about decentralization which is the most important part of Bitcoin.

[DaveF]

Short version: It won't

Long version: There are going to be a lot of competing central bank / monetary authority digital coins coming out in the next few years. But they are all designed to be pegged stable coins. So things like USDT / USDC and all the other ones are going to take a hit in use and utility. But, for BTC since it does not have a fixed value it's going to keep going.

Sooner or later one or two of these srable coins might be de-facto in terms of default use. But BTC will keep going.

-Dave

[Lucius]

The DCMA ( Digital Currency Monetary Authority ) announced the release of the Unicoin at the end of last month. This is intended to be the supernational  digital currency unveiled by the IMF, and it is intended to incorporate it into the SWIFT payment system ( well that's what the blurb seems to imply).

Although I do not doubt that the whole project will be launched, somehow it seems to me that not even all the machinery that the IMF owns will create anything important from all of this in the sense that the coin will start to be used by the masses. According to what happened in the past, it is not so important what it is actually about, but who is behind it. Let's just remember how much hype FB Libra achieved even when it didn't officially exist, but it had a platform of 2+ billion people to whom it could sell its project.

So how will this affect Bitcoin? Obviously Bitcoin is an alternative to the government control via payment restrictions. The government can't stop Bitcoin directly, and restricting exchanges with the fiat system could lead to an alternative payment system to the detriment of the national currency. I believe that government agencies and banks have been buying large blocks of Bitcoin to restrict its supply, and to create volatility. They will probably continue to do this to make it unattractive to businesses.
What can we do to help stabilise Bitcoin as it enters its first stages of maturity.

Little or not at all, because the concept behind Bitcoin is completely opposite to what the IMF and the like offer. The IMF and similar organizations obviously want digitization in their own way, and it is quite legitimate for them to try, time will show how successful they were.

As for the idea that there is some secret agenda of buying BTC in order to harm it, somehow it doesn't seem to make much sense to me. If that were happening, someone would already notice such things, because not all countries work with black funds that hide their tracks. If someone powerful enough wants to harm BTC, then they can do it in a much simpler way through laws that cost them almost nothing but ink and paper.

[Jet Cash]

Don't confuse the DCMA unicoin with the Unicorn Holdings Unicoin. The DCMA has been created to incorporate all of the digital currencies of it's member governments. It will be like the Euro, but much broader in scope, and with government control over the currency. The aim is to replace the current fiat currencies, so calling it a stable coin is incorrect, as it will be the stable that contains all the subservient horses.

[SamReomo]

I don't know about others but I think the Unicoin will be beneficial for the crypto community. Let's say if it stabilizes at $1 dollar than it would be better than most stable coins. The stability will remain as it's almost impossible to de-peg a coin that is supported by IMF, they hold huge money and no one can de-peg their coin. If that holds true then so much money will come into crypto market.

If it holds true than the use case for USDT and other stable coins will be affected and the Unicoin might take their place. I also believe that Unicoin will have wider acceptance because most of the governments will follow the order of IMF blindly as they have taken loans from IMF. The impact on those stable coins will be very high and some of them might be out of business. But, that will only happen if they incorporate the dollar stable version of their coin of centralized exchanges.

What if every country creates its own coin and have some kind of affiliation with IMF? That's also a possibly as most of countries will love to take the instructions of IMF and build up their own crypto-currency that would be tradeable online just like Bitcoin. Those fiat based crypto-currencies will be better in a sense that the volatility of those will be not so high. And, traders might consider them exactly as forex.

[Jet Cash]

I think that is the idea. Each country will have its own brand of mthe Unicoin, in much the same way as each EU member state has its own Euro. Note they are now referred to as "states" and not as countries. It won't really be a stable coin, as there will no longer be a Dollar ( or a Euro ). It wouldn't be possible to incorporate Bitcoin into it, as they would not be able to fix the value of Bitcoin. They may be able to include other alt coins, as they could have pegged values.

[m2017]

~snip

It was interesting for me to hear your opinion and it was new for me to hear about the technology of luring freedom-loving horses into captivity and slavery with the help of a fake unicorn.

But I don't think that the project Unicoin was named that way because of the conspiracy theory and the desire to fool all bitcoin-enthusiasts. Though undeniably, it would be one of the most charming horror legends.

What I unconditionally agree with, from everything said in this post, is that the governments of any country are hostile to bitcoin (even if they demonstrate the opposite) and will try to protect their population from this by all available means. I don't know how it will be implemented, but the idea of governments buying bitcoin to create deficits and influence volatility seems fantastic to me too. Each country has its own problems, the solution of which requires money, and spending the budget in this way (buying bitcoin for the purposes mentioned above) looks doubtful.

[pooya87]

unveiled by the IMF, and it is intended to incorporate it into the SWIFT

That sounds more like a desperate attempt to make dollar (ie a US made and US controlled currency) relevant again. A centralized currency (unlimited, so its fiat again) is being created by an American organization to be used in a service that is practically controlled by US and is basically using dollar.

So how will this affect Bitcoin?

I'm surprised that you even ask this question

I believe that government agencies and banks have been buying large blocks of Bitcoin to restrict its supply, and to create volatility. They will probably continue to do this to make it unattractive to businesses.

I don't think buying and holding large quantities of bitcoin has any meaningful effects on the volatility because volatility is caused mainly by the size of the market and the order books. People don't leave the market if someone "freezes" something like 10 million bitcoin and they won't become super active if that someone didn't "freeze" that much.

[Lucius]

I think that is the idea. Each country will have its own brand of mthe Unicoin, in much the same way as each EU member state has its own Euro.
~snip~

What exactly do you mean when you say that each eurozone member has its own euro? The euro is the common currency of the members of the eurozone and as such is unique in all its members, and the only thing that differs are the coins that each country can issue in a certain period of time with its own motives. Now that you mention some brands and the same digital currency, it all makes even less sense to me, because then what will the CBDC, like the digital euro, dollar or pound, serve?