I Do NOT Trust CBCD
I do NOT trust the Federal Reserve (Fed)'s fiat CBDC. Why? Because CBDC is CENTRALIZED. In other words, I do NOT trust ANY CENTRALIZED digital currencies.
Why Centralized Is Bad?
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THE FED would fully control how, when, where you receive or sent your money.
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In turn, the Fed could censor your feelings and thoughts they disagree with. By limiting or blocking your transactions.
Why Decentralized Is Good?
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YOU fully control how, when, where you receive or sent money.
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FREEDOM of feelings and thoughts. In other words, with a decentralized digital currency, you are protected against the risk with the Fed censoring your feelings and thoughts.
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Stronger privacy. Only you as sender and the beneficiary see your transactions.
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Stronger security. If the software code of the decentralized digital currency is Libre Source (Open Source), this means that more people are able to both contribute to it and improve it. In turn, this result in stronger security. In other words, more eyes watching for vulnerabilities and fixing those.
Alternatives to CBDC?
Examples of really DECENTRALIZED digital currencies (cryptos):
• Bitcoin at https://bitcoin.org
• Monero at https://www.getmonero.org
• BitcoinCash at https://bitcoincash.org
The main benefit of Monero is that it has a much stronger privacy than both Bitcoin and BitcoinCash. Also, Monero is supported by the third-largest team of software engineers.
BitcoinCash is an improved version of Bitcoin. For example, but not limited to, faster transactions and easier to scale bigger than Bitcoin.
If a state is interested to issue a digital currency, how about using an already existing DECENTRALIZED digital currencies (cryptos). Either:
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As is. That is to say, use the already existing decentralized digital currency. Optionally, support it as a sponsor. With donation, or patch, or any other type of contribution to your liking. Conditional to support it WITHOUT strings attached. So that it fully remain DECENTRALIZED.
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Fork it. That is to say, fork (duplicate) its code and adapt it. While, at the same time, keep it fully DECENTRALIZED. Then let people decide if their forked version better meet their needs or not.
Decentralized Exchange
In addition to DECENTRALIZED crypto. For those who needs a very advanced DECENTRALIZED EXCHANGE software, I suggest the fully FREE Bisq at https://bisq.network
"Buy and sell bitcoin for fiat (or other cryptocurrencies) privately and securely using Bisq's peer-to-peer network and open-source desktop software. No registration required."
With Bisq, both your transactions and crypto have the strongest protection against external interference. They can not be blocked or censored.
Short 2 minutes video of a Bisq trade at https://youtu.be/QjmpAq9RUXM
Your benefits with Bisq:
• Bisq is 100% decentralized.
• Free software. No license to pay.
• Government and organization cannot block you. No censorship. You are really free to trade with anyone to your liking and express yourself. Of course, within the legal limits of your local community.
• No servers that could be seized.
• Libre software (Open source). So stronger privacy and stronger security.
• Video channel at https://www.youtube.com/c/bisq-network/videos
F.A.Q.
What happens when the internet goes down?
Both the centralized CBDC and decentralized crypto face the same challenge when the internet goes down. The main difference is that, from a back end point of view, it much easier and cheaper to resolve this challenge with a decentralized crypto though.
For the last 15 years, in my local community, the internet was available more than 99% of the time. During that period, I recall a total of 2 days of internet down.
In the unlikely event that the internet goes down, with most App (software), your transaction simply automatically resume when the internet is back up.
If your transaction is a real emergency. Which can't wait for when the internet is back. You still can do transaction right away without internet:
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Simply use any other network to your liking
- This is already built-in most modern devices and software
- There are many alternative networks to internet
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Local network (LAN)
- Use a software (App) in a local network (LAN) without internet access. Usually, for many Apps, it is a simple one click button called "Enable local peer discovery setting". For example, if I need to do a real emergency transaction now, one of many options is in person, or via phone call, with the supplier, both parties activate their local peer discovery. Then proceed with their transaction. Done. After the internet is back up, this transaction is recorded on the blockchain. This is called "polled".
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Send Bitcoin by Amateur Radio
- Source at https://news.bitcoin.com/no-internet-no-problem-how-to-send-bitcoin-by-amateur-radio/
- Thanks to CoolAsACucumbe for this suggestion
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LETS
- Use a Local Exchange Trading Systems (LETS) with another network than internet. My favorite is https://communityforge.net Software code is available for free at https://www.drupal.org/project/cforge
- "Local Exchange Trading Systems (LETS) are locally organized, economic organizations that allow the exchange of goods and services among group members. The groups use a locally created units of value as currency which can be traded or bartered in exchange for goods or services. Members of LETS typically view the systems as organized and cooperative schemes that maximize purchasing power while benefiting members and the community."
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Mesh network
- For example, but not limited to, GoTenna. Read more at https://captainaltcoin.com/how-can-you-send-bitcoin-without-internet-connection/
- Thanks to CoolAsACucumbe for this suggestion
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Wireless transaction payments
- Thanks to propertyofUniverse for this suggestion
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Barter
- Thanks to propertyofUniverse for this suggestion
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Cash
- I always have a small amount of cash at the ready for a real emergency. But cash is more risky. Because you are dependent on who print this cash. Which is the Fed :(
Blog
My related blog at https://www.minds.com/Francewhoa/blog/reject-cbcd-and-alternatives-to-cbdc-1487229402629541905
Is there a gold backed crypto we can use? Buy based on price of gold and exchange company makes money from each transaction like the CC companies do. They’d have to have a vault full of inspectable gold. Allow anyone in to inspect. Not just “authorities”
I have a gold IRA and can go to the vault at anytime
I do NOT trust gold IRA. Because Gold IRA is part of the CENTRALIZED problem. Not part of the DECENTRALIZED solution.
For those not familiar with gold IRA, it is a paper-gold. It is not physical-gold. Yes, you can go at the vault asking to see and old your physical goal. But the challenge is that to do that you're dependent on a CENTRALIZED third party. I do NOT trust any form of paper-gold or paper-silver or paper-crypto.
By leaving your gold IRA at a third party vault, you expose yourself to a CENTRALIZED third party limiting or blocking your transactions or access to it. Or worst, stealing it! Because the centralized holder disagree with your feelings or thoughts.
Physical gold might be useful if ONLY YOU have access to it. For example:
Stored in a safe in your private home. NOT at a centralized third party. But then, for trading, you have to find people interested. Which might be a challenge for daily transaction or large volume.
Still store at home. For a long term investment. Assuming you have surplus, you are willing to lose.
Exactly my thoughts. There has to be a decentralized solution so you don't have to trust a corruptible 3rd party entity.
IRAs can easily be confiscated by the government.
There are not many gold-backed Cryptos I know of (and I wouldn't necessarily trust the entities "reporting" the gold supply either). Trust in a 3rd party keeping tabs is the problem with a gold backed crypto.
Now there are algorithmic stablecoins that are being pegged to the price of gold. I would look at MELD white paper, Indigo Synthetics, and DJED/SIGMAUSD protocols. In AgeUSD protocols, Reserves backs up the stablecoin value and you can have an Oracle reporting the price of gold in real time (but you still need to trust the Oracle(s) data).
The whole issue I have with gold and silver is that unless you have it in your hand, you have to trust a 3rd party entity to not fudge the numbers and this leads us back to the situation we have today.
If we want to make international payments/commerce seamlessly, crypto is the way to go. Gold/silver is for the individual in a local economy.