The U.S. dollar is completely centralized. Centralization may have some impact on Bitcoin in the short term, but it cannot be affected in the long run. The more you block BTC, the more people will pay attention to BTC.

No matter what form a dollar takes, it's still a dollar. The digital dollar only converts the form, it doesn't change its essence. So the digital dollar won't have any effect on bitcoin.

Not even an inch. Threat for what? For allowing people to convert their assets and make use of it simply because this technology is still not widely accepted across countries? nah.
How would centralisation of a fiat currency will even affect Bitcoin? Im confused. In short term? on what sense? Cryptocurrencies and fiat such as USD has no effect with one another. They are just interchangeable if an investor would like to liquidate an amount of his asset. Even the market prices of cryptos are still based with fiat but a sudden fall on the value of one, won't result to a change with other one's market price.

Exactly. Fiat is Fiat, while Bitcoin is Bitcoin. You can't compare both of them because they're completely different things. Comparing BTC vs Fiat (USD, EUR, YEN, etc) would be comparing apples vs oranges. We all know Fiat will always be centralized, no matter how governments wants us to believe otherwise. The launch of CBDCs will only remove paper money from circulation by putting the mainstream economic system into the digital realm. But that doesn't mean Fiat by itself will become decentralized. On the contrary, CBDCs will enable greater centralization as they will allow governments and central banks to have a full scope over people's finances. Not like paper money where transactions are performed from one person to another without leaving any trace.

When the Digital Dollar comes, we should expect everything else to remain the same. Decentralized cryptocurrencies, on the other hand, will continue to improve and reach a wider audience in the future. They will never go away thanks to the way they were designed. Considering that crypto has come a long way since it's inception, it's likely it will live alongside Fiat for generations. Who knows how a full-fledged cashless society will look like in the long run? Just my opinion

I also agree with you, there is no relationship between the two, it's just that they have prices on their respective exchanges, sometimes it's confusing, but it's back to the holders how they liquidate a number of their assets, in several markets, because it's true that all prices depend on fiat, not even just this year, even in previous years, experiencing the same thing, only a sudden drop in the value of one currency, all changes depending on them..

This would only apply to centralized exchanges. But not P2P transfers happening on-chain. A person could simply buy/sell Bitcoin without having to go through centralized exchanges (which are traceable by the government). Of course, CBDCs will enable governments to have a full-scope of a person's transactions. But as long as you don't disclose that some transactions are related to Bitcoin trades, you'll have nothing to worry about.

The Digital Dollar or any other CBDC for that matter would only mark the beginning of the end for paper money. Everything else will remain likely the same as it is right now. Bitcoin and some other cryptocurrencies are decentralized, so it's likely they will live alongside digital Fiat for generations. Who knows if we're closer towards a cashless society than we've thought? Just my opinion

You can imagine digital dollar as a stable coin in crypto. There are stable coins like us dollar in crypto world too. But that doesn't threaten BTC at all. The dollar will be controlled by Government, which defies the sole purpose of BTC, which is freedom and anonymity of personal space. No strings attached.
Why do you think BTC has come to this position over the year?
It's simply because Bitcoin gives us something which dollar can't provide. And BTC becoming more and more popular day by day. So I don't think this will create any major threat towards BTC.

Digital dollar or simple dollar, none of these can be a threat to the bitcoin. Even no stable coin can ever become a threat to bitcoin. Stable coins cannot replace bitcoin. If dollars or stablecoins were that important, then we never had bitcoin in the first place.



Any money which is controlled by the government can not bring a threat to bitcoin, no matter if it is in the form of digital currency or fiat currency. Also, there cannot be a fixed supply of digital dollars and hence it will not be inflation free.

If Digital Dollar could be used outside of US with little to no restrictions and a lower transaction fee for that matter, Digital Dollar may be on par with bitcoin's utilities, but I doubt that would be the case cause the capitalist instinct is to always make parameters that will yield the person profit no matter what. Bitcoin on the other hand, although pricey, is very much usable overseas and to top it all off, anonymous, protecting its users privacy with utmost care. Digital Dollar will fall short on this as verification will be needed no matter what to make overseas payments and transactions. In the long run, Digital Dollar will see usage amongst the people, but if bitcoin continues to get the support that it gets right now, it will slowly regain traction.