Crypto Fiat!? Can The Big Banks Kill Bitcoin at Will? Yes .. But Not STEEM!!
Between 40 - 80 major banks worldwide are experimenting with blockchain technology as we speak - among these are ..
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So What, What's the Big Deal!?
Well, first of all .. they could quite literally kill Bitcoin, DEAD!
Impossible you say!? Well .. first and foremost, Bitcoin has only been a MASSIVE success amongst crypto-currency enthusiasts, and tech savvy adventurers - it is far from reaching wide adoption - all things remaining the same, on the current trajectory, this of course would happen .. with no hostile intent exhibited by governments, as yet.. Usefulness is the key to it's future - speed, "anonymity perhaps", although the entire industry is being forced away from this by creeping regulation, and demand does not really exist for anonymous transactions, not by the majority of Internet users who have no idea there is such a thing as the "Dark Web".
Consider a network of major international banks, issuing a crypto "coin" with a 1:1 exchange value with their home nation's currency. Further consider the consequences of these banks building this on top of Ethereum, with smart contracts that provide instant exchange between these coins 'in-transit' .. transit times being greatly reduced from that of Bitcoin. I for example waited 3+ hours for a Bitcoin transaction just the other day - gave me enough time to wonder if there wasn't a better way!?
Putting other questions aside, like securing the blockchain, signing blocks, pre-mine vs proof of work creation .. lol .. this is not just fantasy, there has been very serious efforts made, by very serious institutions ..
CAD-COIN
CREDIT: Forbes.com JUN 16, 2016 @ 01:57 AM - Canada Has Been Experimenting With A Digital Fiat Currency Called CAD-COIN
Above is a screenshot of "CAD-COIN" created as a proof of concept, which was tested by Canada's largest banks, as a means by which transfers "between banks" could take advantage of the speed and accuracy of the shared-ledger, provided by this blockchain. Some may say this is far far faaarrr from a plan to introduce a "digital fiat currency" .. but is it? The efficiences, security, absence of counterfeit ... on and on .. perhaps an inevitable end of brick-n-mortar banking, would result in profits that no bank would ignore. Given the competition between them, the minute one moves the others also must - and with the Central Bank involved, you can be sure that beneficial regulation and seeking an end to "unofficial" competing "currencies" will follow.
WHAT ABOUT STEEM!?
Can STEEM continue to exist in a world without Bitcoin, surrounded by digital fiat "coins" issued by central banks!? SURE AS HELL CAN!
In fact, Bitcoin is an impediment to STEEM more than a benefit. Consider the fact that we must exchange 'everything' via Bitcoin (or Ethereum) to get to STEEM, and then back again to get to 'widely-spendable' cash monaaay! This is a pain in the ass, is it not? But why is STEEM "safe" as compared to something like Bitcoin? Because we have what no other crypto-currency has, a self-contained, self-sustaining economy! We, by our very activity, our work done creating content and curating it, gives STEEM value - the more people doing these things, the greater the value. "We" give it value, which is quite separate of the outside, wider-economy. Demand only value, along with limited supply, are the only things that give Bitcoin it's, let's fact it .. rather arbitrary value.
This again, is the genius of STEEM's creators - whether they considered the above scenario or not, they have insulated us from it as a result of their amazing design. We can continue to exist, in our self-contained, self-sustaining universe, and shunt off when "we choose" to exchange our dollar-pegged crytpo-currency for fiat - if the central banks want to deploy this technology, and pass the savings on to the consumer somehow, great! They feel threatened and this may be the only way they can survive us .. if they do this, then we will simply have a faster, more efficient means to exchange STEEM for whatever currency we wish, seamlessly and instantaneously.
DISCLAIMER: F*** the banks! I would much rather they allow us to kill them off than see them enter the crypto-landscape, but if it is inevitable .. then, so be it! We are not going anywhere but Upward and Outward!
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much appreciated
Great point on how Steem derives its value off of the content and community that is so far looking extremely encouraging. Think it's very important for people to understand it in that way to appreciate its value.
However, I disagree with you on how the banks could kill Bitcoin. The banks could defiantly obtain mass adoption thru the effortlessness it'd be for people to switch to their blockchain with an account already set up. I look at Bitcoin more as gold as how people trust it and will have faith in it. Not so sure that people would trust a blockchain created by the same banks that have screwed them over time and time again.
The banks are only looking at payment network systems, not proper cryptocurrencies. They are at best proof of stake based systems but they are also permissioned - the transactions are not going to be irreversible nor are they going to be visible to the public... Quite simply, their payment systems suck, and cryptos are in the process of displacing them from the long distance money transfer business, and even short distance, after a 4 day wait for a Netherlands to Netherlands transfer, and wondering if this was 'Evropeyski standart'... The UK has instant interbank payments, and within Bulgaria and between Bulgaria and Australia I saw transfers go through in under a day...
I think the issue is that payment speed is such a big issue for them and they have been trying to stop people having this for a very long time, except through their mastercard and visa systems, and now even people without a bank account can send money instantly across the world (dash, steem, etc). They are so far behind the curve that it's quite laughable to suggest that they could 'kill bitcoin'. Probably bitcoin won't even die if the bitcoin foundation imploded, the chinese would keep running the network, at least, and take over development.
What might kill bitcoin is one or several of the newer cryptos that actually solve the problems that nearly no other crypto solved. Fast transfers, smart but secure smart contracts, etc...
I think something to consider is that to whatever extent governments and banks would want to "kill" bitcoin for the sake of ushering their own token .. they could also just realize to invest in bitcoin.
Like, if they're capable of knowing there is money to be made here, then they buy a position in the existing cryptocurrencies while it is still early.
And then from there they'll have some incentive to want Bitcoin to succeed-- Goldman Sachs would prefer Bitcoin to a rival bank's token if they have a position in Bitcoin but not in the rival bank coin. So they won't perfectly be able to coordinate against Bitcoin, and so I don't think it's something they'll be able to displace, or really even attempt to.. it seems to make more sense get in early and then have a huge position.
And for all we know that's what they've already done. The mystery of who Satoshi is and etc and so on could be less romantic than we often assume. It could be rich and powerful interests carving a stake in what they know will be the future of currency. Which I don't think is a bad thing at all-- it's still a growth and an evolution to something that's better than fiat. It just takes time until it levels out to a less top-heavy world.
Interesting, but in this case I do not believe the banks are interested in "position" but rather in the efficiencies and additional profits that would flow from making use the technology, but one that is designed in such a way that "the banking sector" had control. They would never wish to be at the mercy of "Chinese miners" for example. So the creation of something entirely new would be required - perhaps they will put something in-place simply to transact with other banks, but if they did move into consumer-realm, with the full participation of governments, then they would steal away the benefits of Bitcoin, in the eyes of the average citizen, most of whom are SADLY not interested in our anti-statist, anti-bank-credit-enslavement revolution.
We can not say where they are going with these "experiments", but if ever fiat is threatened, for certain they will go as far as necessary to secure their future. When you compare the amount of money flying back and forth between banks, Bitcoin is not even a blip on their radar at the moment, but they do see the power of the technology, and there is no other group more engaged in trend analysis ... well, besides the insurance industry. :)
Cheers .. I appreciate everyone's very thoughtful comments and feedback!
Hang the banksters!
I agree with you that big banks couldn't kill steem , but, for bitcoin they'll also fail ......
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