Will a state backed (or sponsored) cryptocurrency be the beginning of the end of all other cryptocurrencies?
For as long as I have been involved in cryptocurrencies, that seems to be the age old question.
All these cryptocurrencies are great, but what happens when a government issues their own virtual currency and demands its citizens pay taxes in said coin?
Governments, technically, wouldn't even have to make all other coins illegal, just require taxes to be paid in their own coin and it likely would receive mass adoption.
The reason I bring this up is because Jordan Belfort (The Wolf of Wall Street), went on the news today stating that he wouldn't touch cryptocurrencies such as Bitcoin because he thinks ultimately a government will issue and back their own coin and at that point it will be game over for Bitcoin etc...
The release can be seen here:
https://www.coindesk.com/wolf-wall-street-jordan-belfort-jamie-dimon-right-bitcoin/
For today, I want to hear from the community, what are your thoughts on this?
From my readings, the main two arguments seem to be as follows:
- A government backed virtual coin would still have the same flaws as fiat money and would also give governments even more control over their citizens than they currently enjoy. The people would never go for this and any government issued coin wouldn't be adopted.
or....
- Governments have the ability to jail or harm anyone that doesn't do what it wants and therefore holds all the trump cards, including getting people to use their own state backed currency. For that reason, a government issued virtual currency will take over if and when it comes.
What side of the fence do you fall on?
Please state below your thoughts on why a Government backed cryptocurrency will or will not catch on.
I won't share my personal thoughts in this post as I don't want to sway any opinions out there. Rest assured, though, I will share them in a later post. :)
Stay informed my friends.
Image Sources:
https://news.bitcoin.com/big-difference-electronic-fiat-cryptocurrency/
http://stuffpoint.com/science-fiction/image/329938/nineteen-eighty-four-screenshot-screenshot/
