Could BTC crash if a Central Bank Digital Currency is introduced?

Your own conclusion may not be nice!

A few years ago, I took a seminar for around 200 chartered accountants to help them get a grasp on #blockchain, #cryptocurrency & #bitcoin

At the end of the seminar, I asked… “Having laid down the pros and cons of what we have in front of us, would you invest in Bitcoin today (BTC was around $5,000 then)?” — no one wanted to invest, some had second thoughts & followed up with questions.

One aspect that many blockchain crypto enthusiasts fail to understand is how the Central Banks, Government & Private Banks play an important role in the functioning of an economy.

All it takes is a bill/regulation/decree to only allow Central Bank Digital Currency, and every other thing is illegal tender.

The price of crypto is still valued in US$ — if you’re valuing something in a base currency, the base currency is the defacto standard. (fx experts will understand this.)

Why would such an announcement be made, centralized control. Why could such a thing fail, inflation.

While ETH does account for inflation (which was smart thinking imho). BTC does not.

Watch the video below & think for yourself — 1) What is currency, is it credit? 2) What if a bank goes bankrupt, what is the central bank backing? 3) What if the central bank prints money?

If you want to read more on my thoughts about blockchain & cryptocurrency, head over to:

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store