Is Bitcoin a threat to the government-owned fiat banks?

Bitcoin is most probably the first real-world financial use case of blockchain technology. People didn't bother about Bitcoin until the price rose to near dollar twenty thousand in December 2017.

• The Bitcoin project could create some publicity on May 22, 2010, when Laszlo Hanyecz demonstrated it as a payable digital currency by buying two pieces of big pizzas with then thousand Bitcoins.

The scalability aspect of Bitcoin puts Bitcoin not a viable digital currency for online payments. The large transaction time and high fees for a single Bitcoin transaction posed a real challenge to adopting it as a tendering currency for micropayments for personal or business uses.

• Bitcoin is not able to pose any challenge to traditional financial instruments, such as credit cards and RTGS payment systems. Thus, Bitcoin is not considered a threat by the government financial sectors.

Graphics: Photo by Kanchanara on Unsplash.

Is Bitcoin Cash a threat to the government-owned financial sector?

Bitcoin Cash has created a ripple in the cryptocurrency arena since its inception as a hard fork cryptocurrency project from Bitcoin.

• The larger block size of Bitcoin Cash is able to solve the scalability issues.

• The Bitcoin Cash transactions are complete within seconds.

• The fees per Bitcoin Cash transaction is as low as 0.01 dollar.

• The carbon foot[print of Bitcoin Cash is much lower than that of Bitcoin.

• Bitcoin Cash is feasible for adoption by global merchants for online payments.

So, Bitcoin Cash is a threat to Bitcoin as a payment instrument.

Many centralized cryptocurrency exchanges are "temporarily" blocking Bitcoin Cash trading and payouts.

• Still, Bitcoin cash is not publicly considered a threat by the centralized fiat-based financial systems.

• No government body has officially challenged the Bitcoin Cash project yet.

• The Bitcoin and the Etherium projects also didn't receive any official challenge from the government bodies.

Then, which cryptocurrency project is officially considered a threat by a government or government regulatory bodies?

The cryptocurrency project that got a legal challenge by a government regulatory body is probably Ripple whose official cryptocurrency is called XRP.

• XRP is a digital asset built on a new distributed ledger named XRP Ledger, which is open-source, permissionless, and of course decentralized.

• XRP is built as a fast, green, less-fees cryptocurrency suitable for settling cross-border payments within seconds.

The Security and Exchange Commission (SEC) of the US government considered XRP as "unregistered security" and challenged it by law suits using a very old security law of the country.

Graphics: Screenshot from the press release on the SEC website.

• Ripple Labs has been suffering due to the US SEC lawsuits and already incurred huge financial expenditure on legal proceedings.

• The legal outcome of the lawsuits against Ripple Labs will determine the future of XRP as well as the entire cryptocurrency arena.

Graphics: Screenshot of XRP Logo.

Concluding thoughts

We know about Bitcoin, Ethereum, Bitcoin Cash, etc. cryptocurrency projects.

There are other cryptocurrency projects that already made a huge impact as a payment instrument.

XRP is one such cryptocurrency project, a decentralized digital asset

• built on XRP Ledger, which is open-source, and permissionless.

• fast, less-fees cryptocurrency suitable for settling cross-border payments within seconds, and producing low carbon footprints.

The Security and Exchange Commission (SEC) of the US government challenged XRP as a "unregistered security" and challenged it by law suits.

• The future of the entire cryptocurrencies domain will be literally jeopardized if Ripple Labs lose the legal battle with the US SEC.

It is not only my opinion, it is a wide view of the cryptocurrency experts.

About me

• I am from Science, Technology, Engineering, and Mathematics (STEM). I have also added "Arts" and "Fine Art" to my interests and made my interests STEAM - Science, Technology, Engineering, Arts, and Mathematics.

• I develop solutions for password and cybersecurity relevant to cryptocurrencies, blockchain, and other block-less distributed ledgers.

I hope the entire blogging community will strive here and elsewhere.

If you have time, please explore my "Learning Times" and other channels on Odysee-dot-Com and earn crypto coin LBRY Credit or LBC for consuming and creating content.

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It was originally posted on read.cash.

Cheers! Debesh Choudhury

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Text Copyright © 2022 Debesh Choudhury — All Rights Reserved

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Disclaimer: All texts are mine and original. Any similarity and resemblance to any other content are purely accidental. The article is not advice for life, career, business, or investment. Do your research before adopting any options.

July 25, 2022.