Bitcoin will be eliminated by the central bank's digital curr
however, this move has aroused people's concern about bitcoin, and they even think that digital RMB will replace bitcoin
the central bank's digital currency represents the digitization of RMB cash. More reflected in improving the efficiency of domestic small high-frequency transactions, thus playing a role in replacing RMB cash, thus consolidating China's monetary sovereignty
however, bitcoin is a currency based on blockchain technology, which has a limit on the total amount of issuance and cannot be over issued
last time I talked about this with people from Yingfu University of Finance and economics. Because there is a fundamental difference between digital personal name coin and bitcoin, it will not bring much impact on the price trend of bitcoin.
To guard against the possible risks brought by bitcoin, we know that digital currency represented by bitcoin has high risks. This kind of risk is mainly reflected in two aspects: first, the limitation of digital currency makes it used as investment goods, and the price is extremely unstable. Those who do not understand the principle of digital currency and pay too much attention to speculation are easy to suffer losses for various reasons
Secondly, national digital currency is linked to its own legal currency to a certain extent, so it effectively avoids the price volatility of bitcoin. Because the CBDC issued by our country is guaranteed by the credit of the central bank, it must be a stable currency. In today's international situation, the research and development of digital currency in China is of great significance. The introction of digital currency is not an expedient measure, it has become the development direction of China's future currencyRecently, the news about "China quietly ordered the closure of bitcoin mines" spread like wildfire. Some media learned through insiders that the central bank held a closed door meeting to rectify some mines with non-standard electricity consumption
in fact, the rectification and treatment of Mines started last year, especially after the closing of domestic exchanges last year, the relevant regulatory authorities also discussed the issue of mine retention, but the conclusion is that the reasons for closing mines are not sufficient, and the mines have not caused more social problems, and the risk points are not clear, so no specific arrangements have been made. However, all localities have received "window guidance", that is, local enterprises can not participate in digital currency mining
in 2016, China's power generation ranked first in the world, and the total power generation accounted for 25% of the world. In this case, according to common sense, mining power in China is indeed the most abundant, especially with the decline of China's economic growth, the wasted power resources are increasing
the electricity of power stations can not be stored, but if the electricity is converted into digital currency, it can be stored. In fact, if China's surplus power generation can be converted into bitcoin for storage, it should be the most efficient mode of proction and operation. It is equivalent to procing US dollars with electricity. It is a processing export mode with the highest added value
in addition, according to the historical development, most of the power in the future may be consumed by computers. This is a judgment I made, which can be witnessed by our generation. In our daily life, the proportion of electricity consumption will be lower and lower. In the future, mankind will solve all kinds of problems by means of digitization and blockchain, and "mines" will only increase, not decrease. Especially with the development of artificial intelligence, space exploration and other fields, the demand for computing power will increase exponentially
electricity is just a kind of energy, just like a person, the biggest energy consumption is not the limbs, but the brain. The human brain is a 24-hour machine. A thinking person's brain consumes 75% of the liver's stored blood sugar every day, and the oxygen consumption accounts for 20% of the whole body's oxygen consumption. The more the brain thinks, the more glucose the neurons need
When the electric lamp was invented 200 years ago, people thought that the best use of electricity was to light the bulb. Has the final say that what electricity market will be most effective in future? p> No one can see electricity. Up to now, it is difficult for many people to understand the mystery of its existence, but electricity has changed the world. The influence of many virtual things is often greater than that of physical things. What does "digital assets" mean to China and the world? I think it is difficult for many people, including the government, to make clear at this time. What we need to reflect on is that apart from the four great inventions, such as electricity, light, telephone, computer, digital currency and so on, how many of the things that are pushing mankind forward are invented by Chinawhen a phenomenon appears, we must study the background and logic behind it. The future competition can be said to be military competition, economic development competition and financial competition, but it can also be said to be ideological and computational competition. It's easier to close mines than to stop trends
From the stable currency issued by banks, to the stable currency issued by Internet companies, to the present stable currency, all these mean that the future digital legal currency will come to people's vision and officially enter the stage of history, which will be initiated by central banks. Similar to the current public chains with different architectures, the digital currency of central banks will also use different technologies suitable for their national conditions. The digital currency of the central bank will explode in a certain period of time, which will make global trade more convenient, asset transfer will be extremely fast, and even drive the further development and innovation of traditional instries< but will bitcoin, the originator of digital currency, be replaced by central bank digital currency? Here mainly from the following aspects of analysis
3. Payment function and there will be certain restrictions on the payment function of the central bank's digital currency. If the comprehensive liberalization policy is implemented, it means that the exchange of legal currencies between countries is less regulated, so it may also cause large-scale capital loss, Therefore, the payment function of the central bank's digital currency may only be limited to specific regions and countries and cannot be spread out at will, which will also have an impact on its function
because bitcoin is a free digital currency, there are no restrictions on its use. Anyone can use bitcoin for value storage , which also facilitates more people who need money exchange. However, e to the high degree of freedom of bitcoin, the exchange rate between bitcoin and legal currency has certain volatility, As a result, the behavior of currency speculation also occurs. In different periods, legal currency and digital currency have different exchange rates. Therefore, bitcoin can only be used as a payment type digital currency in the short term, and can only be used as an investment proct in the long term. The two attributes of investment and payment are opposite to each other, This will continue for a long time to come
(1) the purpose of the digital currency issued by the Central Bank of China is to make it easier for the central bank to monitor the flow of funds and manage the use of funds more effectively
(2) in addition, global financial institutions are widely embracing digital currency, among which China is one of the main countries. It is actively exploring and issuing their digital currency, improving the efficiency and transparency of domestic global payment system, so as to curb the outflow of up to US $843 billion annually.
(1) bitcoin lacks the support of national credit and is difficult to perform the function of commodity exchange medium as the base currency. But this function is exactly the essential attribute and the most basic function of money
(2) bitcoin is more like gold in the virtual world. This is because the generation of bitcoin also needs to complete the process of "mining" by running complex algorithms. "Mining" itself requires a lot of computing power and a lot of electricity to power the computer. In the real world, real gold mining also needs related investment. At the same time, bitcoin is limited in size and tends to deflate, much like gold.
however, the central bank's investigation of bitcoin has little impact on the digital currency on the platform of coin Ying China, because the digital currency on the platform is supported by real assets and only exists as an asset certificate.
moreover, bitcoin will not be recognized by the central bank, nor can it be circulated openly, so the audience is very small, and there is no basic value support, so it will die out sooner or later
it is certain that any digital currency not recognized by the central bank has no future.