@gissing
The rise of Central Bank Digital Currencies (CBDCs) poses a significant challenge to the decentralized nature of Bitcoin and other cryptocurrencies. CBDCs offer governments the ability to control digital currency issuance, raising concerns about the future role of decentralized assets in global finance. While CBDCs may enhance financial inclusion and streamline payments, they could also erode the demand for Bitcoin, which has long been viewed as a hedge against fiat inflation. Bitcoin’s appeal as a store of value may be diminished if CBDCs provide a government-backed alternative. However, Bitcoin’s decentralized, censorship-resistant nature remains a critical differentiator, and it may continue to be seen as a long-term store of value, especially in inflationary environments.
0 reply
0 recast
0 reaction