Write in front ❖
Some people say that cryptocurrencies will always replace legal currency, and I object.
TVB does not believe that cryptocurrency cannot replace legal currency, but believes that cryptocurrency and legal currency are not antagonistic. Because cryptocurrency and legal currency are two levels of things.
❖Cryptographic currency ≠Bitcoin ❖
Although Bitcoin is a cryptocurrency, although Bitcoin is the originator of cryptocurrency, cryptocurrency is really not equal to Bitcoin.
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The cryptocurrency is first of all a form of currency, and then a currency that uses encryption. That is to say, the key to cryptocurrency is two. First, it is the medium and the carrier is information technology. Second, its implementation technology is cryptography.
Bitcoin is just one of many decentralized cryptocurrencies. Of course, it is the earliest, most important, most remarkable and most admired.
But Bitcoin cannot represent cryptocurrency. The cryptocurrency can also be centralized or decentralized:
❖Cryptographic currency vs banknote❖
The cryptocurrency, as the name implies, is an encrypted currency. This is a currency medium and technical classification. Corresponding to it should not be a legal currency, but a banknote.
The opposite of cryptocurrency is banknotes, while illicit coins. The legal currency can also be issued in the form of cryptocurrency. Central banks in various countries can still control the circulation of cryptocurrencies, and can still decide when to issue and issue, when to recycle and how much to recycle.
What really contradicts the legal currency is the decentralized cryptocurrency like Bitcoin, not the entire cryptocurrency.
There is no sharp contradiction between cryptocurrency and legal currency. The generation of cryptocurrency has had a huge impact on traditional banknotes.
❖ Bitcoin vs. French ❖
Bitcoin really brought a certain impact on the French currency. but:
Due to the unstable price of Bitcoin, the transaction fee is relatively high, and it has not become a widely used currency. Other decentralized cryptocurrencies are less recognized than Bitcoin. The field of bitcoin as a currency function is more in the illegal areas of money laundering and extortion.
There are also some grey areas, such as adult entertainment venues in Nevada.
In the legitimate business world, there are not many scenarios for bitcoin payments. As a currency, Bitcoin currently has no effect on many currencies such as the RMB and the Japanese Yen.
The real impact is the dollar.
First, because the US dollar is an international currency, it is used in the field of international payments and settlement. Bitcoin can also be used for international payment and settlement. Although the bitcoin transaction fee is not low, the US dollar will also generate certain exchange losses when it is used for international settlement.
Second, because the US dollar is a universal world currency, it can control the circulation of the US dollar by controlling the circulation of US dollars, controlling the appreciation and depreciation of the US dollar, and further controlling the world economy through the US dollar. The flow of bitcoin has greatly hampered the dollar’s control of the world economy.
Third, the United States has sanctioned some countries through the international status of the US dollar. For example, the United States restricts the export of oil to Yilang. But with Bitcoin, Yilang can sell oil through Bitcoin without being sanctioned by the United States.
So for the time being, bitcoin is the enemy of the dollar, but it does not threaten other legal currency. This is precisely the motivation for Nakamoto to create the US dollar. Nakamoto is aware that the United States is controlling the world economy through the US dollar. This centralization is very unfavorable to the world economy, so Nakamoto will establish a bitcoin system. .
Decentralized cryptocurrency vs. currency ❖
Decentralized cryptocurrency and legal currency are opposite. However, TVB believes that decentralized cryptocurrency cannot replace legal currency.
The legal currency regulates the economy through centralization. When the economy is in recession, the central bank will increase the circulation of the French currency, and the legal currency will become worthless. People are not willing to keep it, preferring to spend it. This can stimulate consumption and production, thus making the economy from a depression to prosperity.
When the economy is over-represented, the central bank will reduce the circulation of the French currency, and the legal currency will become scarce and appreciate. Therefore, people prefer to reduce consumption to save or invest money, so consumption and production will decrease, and the economic surplus will be weakened.
Decentralized cryptocurrencies may also be self-regulating. But there is a problem.
TVB gives an example. The controlled currency is like a ball with a stretch line. When it falls, the elastic line can be pulled down. However, without this line, the ball will bounce when it falls, but it will hurt when it falls.
If there is no centralized control of the legal currency, economic and financial may deteriorate to a very serious situation before it begins to reverse. Therefore, decentralized cryptocurrency cannot completely replace legal currency.
But, in turn. While legal currency can be centrally controlled, who can guarantee that a centralized decision must be 100% wise? Who dares to guarantee that the central control party is not selfish?
So we also need to decentralize the cryptocurrency.
Therefore, decentralized cryptocurrency and legal currency are all we need, and they complement each other and complement each other.
Written at the end
The cryptocurrency is the medium level of money, and the legal currency is the issuer of the currency. They are not antagonistic. So there is no need to replace it.
Opposing the cryptocurrency is another currency of the media – banknotes. Obviously, from the widespread popularity of Alipay and WeChat, banknotes will eventually be replaced by digital currency, which is a more secure digital currency, so cryptocurrencies will replace banknotes and illicit currencies.
The legal currency will also become the form of cryptocurrency. The cryptocurrency is simply to change the money printed on paper into the blockchain.
The opposition of the legal currency is the decentralized cryptocurrency, but these two forms of currency are all needed by the social economy. The social economy requires both centralized scientific regulation and decentralized freedom. Therefore, decentralized cryptocurrency cannot replace legal currency.
Therefore, the future monetary system should be the symbolization of cryptocurrency + decentralized cryptocurrency.
Do you agree?