Bitcoin broke through 7,000 dollars like a bamboo. Some people think that the bull market is really coming. Some people still remain skeptical about it. After the ups and downs of the currency circle, its development prospects never seem to have a relatively clear answer, but to explore encryption. In the future of money, we will never bypass Bitcoin.
Bitcoin may be the hottest topic in the investment market in the past two years. For Bitcoin, on the one hand, China's regulatory attitude is very cautious. On the one hand, investors have confidence in their enthusiasm. Many people still insist that Bitcoin will replace the current one. With money, it becomes the universal currency of the future world. To explore the future of bitcoin and cryptocurrencies, we must first figure out what the currency is.
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We know that money is a unit of measure, with means of exchange medium and value storage. From this dimension, Bitcoin meets these standards, but what we ignore is that the real name of these currencies is called “legal currency”, which is the country. The key to the issuance of a franchise to a bank (such as the central bank) is the state credit.
Behind the currency is "national credit"
We all know that the US dollar is now the core of the global monetary system. Any trade must be settled in US dollars. Countries must use US dollars to issue government bonds overseas. International bulk commodities: oil, natural gas, iron ore, are all denominated in US dollars. And the position of the "hegemony" of the dollar was at the Bretton Woods conference 75 years ago. At that time, there was a debate about what currency to use as the "anchor" of the international monetary system. In the meeting, White proposed the US dollar as the center. The plan to peg gold, the other currency pegged to the dollar was adopted by the conference, making the dollar a reserve currency for international pricing and becoming the center of the international monetary system.
However, after the 1970s, with the economic recovery of various countries, the US dollar was under pressure from depreciation. Finally, the United States simply announced that the US dollar was decoupled from gold. The issuance of the US dollar was no longer restricted by gold reserves, but only related to the economic growth and credit scale of the United States. . With the decoupling of the dollar from gold, the global currency has entered the era of a complete credit currency with the US dollar. The floating of the value of money depends entirely on the strength of one country and the confidence of other countries in this country. A currency without national credit blessing can not become a universal currency even if it can complete the functions of pricing, storage, and exchange.
The country and the bank have reshaped the concept of money
The issuance of money, the national credit behind it is the core and the key. In fact, in the process of currency issuance, there is also a hub that is the central bank, which is the central bank to issue currency through the specific powers granted by the state. In fact, this is also an important feature of modern currency. The state and the bank are intertwined and shape the concept of credit currency.
This power granted by the state to a particular bank shows a great advantage. On the one hand, the state dominates the issuance of legal tenders, it can obtain long-term stable funds, and the power of the state becomes very large. On the other hand, the government can control the scale of credit of the entire society through the issuance of currency, and regulate and control the economy.
Just because the legal currency is endorsed by the state and the central bank, the French currency has become the common currency in economic life, while the cryptocurrency led by Bitcoin has no national endorsement, and on the other hand, because its decentralization is not controlled by the central government, Let the existence of this form of currency fall into an embarrassing situation when faced with market tests. The two different attitudes towards cryptocurrency in the market make the road to development full of ups and downs.
But what we have to admit is that even without the endorsement of the state or the central bank, the cryptocurrency led by bitcoin has increasingly highlighted its value, which is completely determined by the market, which means that the existence of cryptocurrency is particularly legitimate. . In recent years, with the rise of the concept of digital economy, the future of cryptocurrency presents multiple possibilities.
Economic digital transformation will become an opportunity for cryptocurrency development
Along with the development of cloud computing, big data, artificial intelligence, and industrial Internet, digital transformation has become the main battlefield that drives economic development and economic strategy competition among countries. The development of digital economy has become a global consensus.
According to Accenture's analysis, for every 10% increase in digitization, per capita GDP will increase by 0.5% – 0.62%. Especially in the current global economic growth, the digital economy is seen as a new lever to incite the global economy. It is predicted that the application of digital skills and technology will make the global economy expected to increase by 2 trillion US dollars by 2020; by 2025, half of the global economic value comes from the digital economy.
The development of the digital economy cannot be separated from the promotion of legal digital currency. According to public information, the People's Bank of China was one of the first central banks to conduct research and experimentation on digital currency. In 2014, a special research group on legal digital currency was established to demonstrate the feasibility of the central bank issuing legal digital currency. It may become an opportunity for the development of cryptocurrency in China. Because the country has put into practice on the road of issuing digital currency, this country is Venezuela.
According to reports, the oil coin is the world's first digital cryptocurrency issued by the Venezuelan government with a national credit endorsement. The currency value is always linked to oil, and 1 oil coin = 1 barrel of oil. According to the White Paper on Petroleum Coins, the value of oil coins is supported by Venezuelan national resources, with oil supporting 50%, gold supporting 20%, iron supporting 20%, and diamond assets supporting 10%. This currency will be used for international payments and become a new way for Venezuela to raise funds internationally.
It is worth mentioning that the current Venezuelan oil coin has opened the official purchase route with the support of its Ministry of Economy and Finance. Venezuelans have been able to purchase petroleum coins directly through the national encryption remittance platform Sunacrip, and can use Bitcoin, Wright. Coins and other cryptocurrencies are directly converted into coins. This provides a new way of thinking and ways for the development of global cryptocurrency.
However, due to different national conditions, the development path of cryptocurrencies in different countries is also different. For China, under the concept of digital economy, digital currency will become an important support for future economic development. As for whether cryptocurrency can be issued as a national digital currency. There is still a long way to go, but this trend is not to be overlooked.
Under the optimistic trend of Bitcoin market, the cryptocurrency industry has also shown its immeasurable development potential. In the current situation, investors will be the most direct beneficiaries of market dividends. No belief is unfounded and can be market. There is always a strong reason for accepting it, as is cryptocurrency. (immediately gold)