[siwatanejo]

> The irony is that these real resources are being protected by their respective governments, thus the existence of the US military (and all other militaries) is an essential part of Bitcoin's current valuation.

Sadly this is true, but not for long. Bitcoin adoption is still very small but it will grow. Once it grows to cover the vast majority of merchants in the world, the next flip of a switch will be in people's minds: they will start valueing things in bitcoin (or bits, or satoshis), instead of USD, EUR, etc. (In pretty much the same way people switched from drachmas to euros recently...)

And once that happens, people will stop thinking of the fiat monetary value of one bitcoin (or bit, or satoshi), and then your statement will not be true anymore.

[LegitShady]

I think your scenario requires that governments not influence the monetary policy of their countries, which is far removed from reality. We already see china cracking down on it, and the subsequent reaction in the market.

No country is going to give up its control of monetary policy in exchange for cryptocurrency - there will simply be digital currencies also controlled by governments. We already see this happening. The result will be even more traceable, controllable transactions - not this anarcho currency you're envisioning.

[siwatanejo]

Actually thanks to the creation of CBDCs, the switch to bitcoin will even be faster IMO, because thanks to CBDCs people will get used to paying things with crypto, but they will see that using CBDCs instead of bitcoin is a bad decision that hinders the purchasing power of their savings. But exchanging CBDCs with bitcoin is much easier to do than exchanging fiat with bitcoin, so the switch will happen faster!

[LegitShady]

All CBDC transactions will be centralized and tracked, allowing perfect understanding of what they're used for. When the government disallows bitcoin/etc because of constant scams, changes to its structure, or just to various cryptos from manipulating monetary policy, all of the transactions will be tracked and the government will know who spent what on bitcoin.

CBDCs are literally just government currencies with a million times better tracking than the current banking scheme.

It isn't going to make bitcoin easier, it's a direct threat to every advantage bitcoin has, while still having the utility of being exchangeable for actual goods and services, something bitcoin lacks except maybe on the dark web.

CBDC are what is going to kill the wild west of crypto, the way the centralization of everything on the internet has killed much of the wild west of the internet.

Imagining that centralizing and improving tracking will somehow make the wild west come faster is not paying attention to how things have gone so far, and the actual aims of making a CBDC. It's not to give up control of monetary policy, it's to get it back.

[siwatanejo]

> When the government disallows bitcoin/etc because of constant scams,

That's a big when. Also, which government? The only ban on bitcoin that can be effective is the one in which all countries in the world collude, otherwise holders will move jurisdictions (to stop getting robbed from the government via inflation).

> all of the transactions will be tracked and the government will know who spent what on bitcoin.

Hahaha and now you tell me how? If this was easy to do, then technologies such as PayJoin or what Wasabi wallet implements would have been cancelled already. No government can stop this.