Baidu Encyclopedia's definition of money: According to the theory of money, money is a contract between the owner and the market about the exchange of rights, which is basically an agreement between the owners. I give what I have to the market in exchange for what I need, and money is the agreement of this process. This theory can withstand strict falsification and logical argumentation, explains all economic phenomena related to money, and has been tested by all economic practices, thus ending the debate about the nature of money for hundreds of years.
? As a medium of exchange, money's value and storage existed long before the country appeared. From the barter exchange in primitive society, to the ancient gold and silver jewelry as currency, and then to the RMB, US dollar and Euro in modern society, the back of the currency is endorsed by a powerful country, and the central banks of all countries must serve the government unconditionally. The government is an important endorsement behind the central bank, and the currency circulation is also determined by the state. In the event of a metal crisis, the central bank needs the support of the government, and the government cannot let banks go bankrupt. The government needs to maintain the security and stability of the whole country, protect the assets of most people and safeguard the interests of the country, and finally form a virtuous circle. The competition between national currencies is essentially the competition of economic strength. Why is the dollar so strong? Why can RMB enter the international market? It is precisely because the country is strong and backed by strong economic strength that the US dollar and RMB occupy an important position in the world. The stronger the country, the higher the status of money in the world.
? Back to Bitcoin, the underlying technology of Bitcoin is blockchain, and there is no national endorsement. The operation of Bitcoin is essentially controlled by algorithms. People think that bitcoin is essentially a kind of trust in the program, and because of the fluctuation and instability of bitcoin price, it is impossible to become a legal world currency in the future. If Bitcoin wants to become a world currency, it must have the basic conditions of 1.
1. Reasonable tax payment can be supported by the government.
Of course, it is impossible for the government to legalize Bitcoin under normal circumstances, but it is possible for at least 80% people to use Bitcoin for shopping and sales when Bitcoin is widely used. At that time, the government may change its view on Bitcoin, and it is likely to issue a Bitcoin banking license. On this day, we never know when it will come, and it will probably never be legal. So far, bitcoin is still an experiment, and it can't be said that it is 100% successful. It will take time to test what form Bitcoin will eventually develop into. Recently, Bitcoin bifurcated and many new coins were born, such as Bitcoin Gold, Bitcoin Diamond and Super Bitcoin. Will they all be valuable? There is a big question mark here, and the final time will give the result. Judging from the bifurcated coins of Bitcoin, I think that if Super Bitcoin SBTC can successfully launch smart contracts, it will be an important milestone beer of Bitcoin, which is of great significance, because Bitcoin will bifurcate because of different opinions in society, affecting the overall market value of Bitcoin, so Bitcoin is not scarce, because the current Bitcoin cannot be expanded, there is no smart contract, and the transaction cost is high. In the future, the king status of Bitcoin is likely to be replaced by Super Bitcoin, and SBTC is a new experiment.
The future legally encrypted digital currency will definitely replace the existing paper money, because it is more convenient to circulate, can improve the efficiency of space transactions, has lower operating costs and is more conducive to the storage of value. This must be the general trend in the future. With the rapid development of society, we should learn new technologies with an open mind, constantly learn new concepts, constantly improve our cognition, persist in in in-depth thinking, constantly sum up, never follow the trend and be better ourselves.