Fiat currencies and cash, in general, are frowned upon by the crypto community. The main reason is the control that the government has over fiat. The same is also the case for bank accounts because we have seen time and again that banks often freeze accounts and funds. However, CBDCs are worse than cash and bank accounts, and people are much better off using the latter, says Blockstream CEO.
What are CBDCs are worse than cash?
Central Bank Digital Currencies (CBDCs) give much higher control of your funds to the government than paper cash or a bank account. So, using them will be diving into a hole that will be very difficult to climb out off. Bitcoin, on the other hand, cannot be controlled or seized, which makes it a perfect alternative to cash and bank accounts. But it’s better to continue on the same route if you are waiting for CBDCs to be launched and use them instead of cash.
Th insuring authorities will just have too much control. Just think, if the government doesn’t want you to buy alcohol or some other good, you won’t be able to with CBDCs. Why? Because it’s programmed. At least, with paper cash, they are not keeping proper track of how you spend your money.
Adam Back on Bitcoin
Adam believes that even right now, Bitcoin continues to replace Gold as a store of value. With a rise in adoption, confidence, and awareness, more companies and financial institutions will start offering Bitcoin services. And most importantly, Gen Z people and millennials are more likely to invest in Bitcoin than Gold. Bitcoin has survived for more than a decade, and it will likely survive in the future.
Blockstream’s CEO also thinks that Bitcoin is going to reach $100k this year. There are certain things that must happen for BTC to reach that level. For example, Adam thinks that things will go back to normal, interest rates will fall again, money printing will start, quantitative easing will begin, and BTC will break off its correlation to the US market.
What are your thoughts, as Adam Back says, that CBDCs are worse than cash and bank accounts? And do you think they will be adopted? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.