Second, it is influenced by the economic theory that has been received in the past. Whether it is bitcoin or cryptocurrency, many people often refer to economists' conclusions about the relationship between commodity value and currency when assessing their value, such as the Austrian economist Menger. The groundbreaking work on the origin of money first described the currency as "the fact that a commodity became a generally accepted trading medium."
Later, Mises built on this understanding. In the book Money and Credit Theory, Mises wrote: "We can refer to those currencies that are simultaneously commercial commodities as commodity currencies. A currency with special legal qualifications is called fiat currency.” For this reason, on the one hand, there is no specific commodity behind Bitcoin as a value support, and on the other hand, because it cannot have a wide circulation value like the French currency, it is considered by Bitcoin. The refusal that no one can do anything with them other than transactions.
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However, whether bitcoin or cryptocurrency is valuable is not determined by economic theory in the past. In today's virtual economy and digital economy, bitcoin or cryptocurrency will have a huge impact on social life. One of the widely recognized values of Bitcoin is that it has a hedging function in addition to its investment.
For example, affected by the Sino-US trade war, the stock market crash caused the market risk aversion to heat up, and Bitcoin became the best safe-haven product. In addition, for value storage media (real estate) that are not easy to carry, in the event of irresistible factors such as earthquakes, tsunamis, wars, etc., it may be cleared at any time, while decentralized digital value storage media bitcoin and others The cryptocurrency just circumvents this risk.
Centralized assets have the benefits of their existence, but they also hide uncontrollable risks. Once the physical form behind these assets is destroyed, it will be a great loss for asset owners. Looking back at Bitcoin or cryptocurrency, although there is no specific physical value behind it, but what makes it worthwhile is the belief of people. To some extent, this belief is more sturdy and unacceptable. Destroyed.
Therefore, bitcoin or cryptocurrency does not lock in useful resources to store wealth, but allows humans to store wealth without being affected by the opportunity cost inherent in storing goods. This global, permanent, and accessible wealth reserve is laying a solid foundation for future economic development around the world. (immediately gold)