Why can't blockchain currency become legal tender
The number of bitcoin is too small to circulate on a large scale in society. Moreover, its existence is not guaranteed by the national credit, but based on the trust between bitcoin players, so the credit of this "currency" is relatively low
moreover, the number of bitcoin is small, and it is too concentrated in the hands of several big players, resulting in its price is very unstable. This is basically not money. Because as a general currency, an important prerequisite is price stability, otherwise the economic order will collapse
bitcoin has no value base; The price fluctuates sharply; There are three basic reasons why bitcoin can't become the world currency e to the lack of support from monetary authorities
can bitcoin become a real currency? http://www.financialnews.com.cn/yw/pl/201401/t20140107_ 47595. HTML
since the birth of the first bitcoin seven years ago, bitcoin has been developing rapidly and caused a lot of controversy. The discussion focuses on how to define bitcoin, whether it can become a currency and even become an international currency in the future
in 2013, bitcoin was very popular in China, not only the price soared, but also was evaluated as "a big challenge to the current monetary system" by some analysts. In early December 2013, the people's Bank of China, together with five ministries and commissions, issued the notice on preventing bitcoin risks, pointing out that bitcoin is a specific virtual commodity, not a real currency. Then, bitcoin prices fell
at the beginning of the new year, on January 4, the National Bank of Malaysia announced on its website that it would not recognize bitcoin as a legal currency, and urged the public to be vigilant against its risks. In fact, since the second half of 2013, South Korea, Thailand, Indonesia, Norway and other countries have successively made their stand against bitcoin trading activities, and they do not recognize bitcoin as a currency in the market
At the same time, it is reported that in January this year, the world's first bitcoin atmrobocoin entered the Hong Kong and Taiwan markets. Companies also plan to launch bitcoin ATMs in more parts of Europe, Canada and the United Stateson the one hand, the relevant regulatory authorities have "made their stand clear"; on the other hand, the global layout of bitcoin has been advancing rapidly. How to determine the nature of bitcoin and its future development momentum have once again attracted the attention of all parties
Sheng Songcheng, director general of the survey and Statistics Department of the people's Bank of China, published an article entitled "virtual currency is not money in essence -- take bitcoin as an example" in his own name, emphasizing that virtual currency represented by bitcoin is not money in essence and it is difficult to become money
he believes that bitcoin lacks national credit support and is difficult to perform the function of commodity exchange medium as the base currency. Modern credit currency (paper money) represents national credit, and actually represents the proction and transaction of commodities in the whole society. As long as the national machine works normally, the coercive force of national laws can give the public trust in the standard currency. Bitcoin has no value itself, no national credit support, and no guarantee of the whole society's commodity proction and trade, so it does not have the value basis of money. In addition, bitcoin has no legal compensation and compulsion, and its circulation range is limited and unstable. Bitcoin has strong substitutability, so it is difficult to be a general equivalent
Secondly, the number and scale of bitcoin have set an upper limit, which is difficult to meet the needs of modern economic development. He believes that there is a contradiction between the limited quantity of bitcoin and the expanding social proction and commodity circulation. If bitcoin becomes the standard currency, it will inevitably lead to deflation and inhibit economic development. The limitation of quantity also makes bitcoin's function as a means of circulation and payment greatly reced, which makes it easier to become a speculative object rather than a medium of exchange Thirdly, bitcoin lacks a central regulation mechanism, which is not compatible with the modern credit currency system. Sheng Songcheng believes that bitcoin does not have a centralized issuer, so it is easy to be over hyped, resulting in excessive price fluctuations, and can not become a pricing currency and circulation means, so it needs to be converted into bitcoin to pay; Bitcoin is also not controlled by the monetary authorities, so it is difficult to play the role of economic adjustment meansat the end of the article, Sheng Songcheng also made it clear that money is inseparable from economic operation and economic development, and is not a pure proct of technology. As long as there is no fundamental change in the form of modern economic and social organizations, the monetary system based on national credit will exist, and bitcoin and other virtual currencies will not become the standard currency of a country, and thus not the real currency, "but the Utopia of technology supremacy and absolute liberalism"
As for the prosperity and significance of bitcoin, Sheng Songcheng explained, "the emergence of bitcoin reflects people's worries about inflation under the condition of credit currency in a sense. Central banks should strengthen liquidity management, reasonably regulate money supply, keep prices basically stable, and promote stable economic and social development. "ring the writing period, our reporter contacted Sheng Songcheng again on issues related to bitcoin. He stressed again in the interview: "bitcoin is not the real currency, the real currency can only be the standard currency."
Sheng Songcheng said, "from the perspective of the history of monetary theory, bitcoin is not new. Its essence is the privatization of currency issuance or the non nationalization of currency. Hayek, a famous Austrian economist and Nobel laureate, put forward a proposal many years ago, and Friedman, a famous American economist, also made a similar proposal. However, their opinions are only a theoretical analysis tool, which is difficult to operate in real economic life, and the modern economy is increasingly inseparable from the country's macro-control. This financial crisis and its response is a good proof. Money is one of the main means of national macro-control and the basis of modern state and government. How can it be privatized? So I use the word "Utopia."“ In my opinion, technology can not replace the national attribute. Any digital currency can only be the realization form of standard currency. Therefore, electronic money will develop, and virtual money is utopia. " Sheng Songcheng said, "as long as there is a modern state, virtual currency will not be a currency. Many people ignore the national and social attributes behind money and think that money is just a natural entity. "as for the future development prospects of bitcoin, a commercial bank analyst interviewed said: "bitcoin trading, as a commodity trading behavior on the Internet, ordinary people have the freedom to participate in it at their own risk, and there is still a lot of room for development in this aspect. At present, in view of the fact that bitcoin has not had any impact on the monetary policy of central banks, and from the perspective of issuing technology, it seems to have enlightenment, so many central banks hold a wait-and-see attitude towards it. "
but as for whether bitcoin can play the role of currency in the future, or even international currency, the analyst said that it is "not optimistic". He said, "even if some countries want to use bitcoin as the world settlement currency, but it is in private hands, and the price fluctuates violently, can it become an international currency? Moreover, the important premise for it to become an international currency is that the authorities of all countries recognize its monetary nature, which itself is a difficult problem. "
Sheng Songcheng also said, "bitcoin does not have a value base; The price fluctuates sharply; There are three basic reasons why bitcoin can't become a world currency without the support of national monetary authorities. "As of May 2020, blockchain and digital currency are illegal in China
according to the announcement of the people's Bank of China Central Network Information Office, Ministry of instry and information technology, State Administration for Instry and commerce, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on preventing the risks of token issuance and financing, Article 2 no organization or indivial shall illegally engage in token issuance and financing activities. Organizations and indivials that have completed the token issuance and financing should make arrangements such as refund, reasonably protect the rights and interests of investors, and properly handle risks. Relevant departments will seriously investigate and deal with the activities of token issuance and financing that refuse to stop and the illegal behaviors in completed token issuance and financing projects
Article 3 strengthen the management of token financing trading platform
from the date of this announcement, any so-called token financing trading platform shall not engage in the exchange business between legal currency and token and "virtual currency", and shall not buy or sell token or "virtual currency" as a central counter party, and shall not provide pricing for token or "virtual currency" Information intermediary and other services
extension data
"illegal financial institutions and illegal financial business activities ban" stipulates that:
eleventh, the criminal suspect, funds and property involved in illegal financial institutions and illegal financial activities, and the public security organs shall take compulsory measures according to law to prevent suspect from escaping and transferring funds and property. p>
Article 12 the people's Bank of China shall, after investigation and confirmation, make a decision to ban the illegal financial institutions and financial business activities, declare them illegal, order them to stop all business activities, and make an announcement
Article 13 if the people's Bank of China discovers that a financial institution opens an account, handles settlement and provides loans for an illegal financial institution or illegal financial business activities, it shall order the financial institution to stop the relevant business activities immediately. No unit or indivial may use the relevant funds without authorizationof course, the coin here is what we often call token, which originally means token (temporary) in computer identity authentication. With the popularity of blockchain and digital currency, people have a variety of translations for token, including token, integral, certificate, logo, indicator, etc
the understanding of token in the market can be divided into two categories
in the first category, 99% of the people think token means token, because 99.9% of the projects do the same thing. Set up a foundation, build a website, write a white paper, and then go to ICO. Because most of the projects are still in the conceptual stage, token itself has no other meaning except trading, so people call it token, which performs the function of currency to some extent
in the second category, professionals and institutions are more willing to translate token into proof of equity, or token. For example, a person's identity certificate, academic certificate, equity, bonds, points, bills, etc., are authentic and tamperable because of the proof of rights and interests. Every proof of interest becomes more secure and reliable through the protection of cryptography
therefore, blockchain is not only a technology, but also a new mode of proction and organization, even a new thinking
so, the question now is, does the blockchain project have to issue currency
answer: you may not issue currency. Not all blockchain projects need to be issued with currency, and it is not necessarily blockchain projects that issue currency
for example, the alliance chain does not need to issue coins. For example, Tencent's q-coin, in principle, is also a kind of currency, but it is not a blockchain project
therefore, the two are not related, but if they are public chains, they need to issue coins. Why
let's take bitcoin as an example. Bitcoin system as a public chain must rely on the existence of bitcoin. Public chain obtains the stability and non tamperability of its system through the nodes distributed all over the world, and these properties are the basis for the existence of public chain
imagine that if the bitcoin system is unstable or can be easily tampered with, bitcoin will be worthless. These nodes are not set up by one or several companies, otherwise they are equivalent to private chain or alliance chain. These nodes must be built dynamically by many participants. And the existence of these nodes must need some kind of incentive, otherwise why do the builders of these nodes want to participate in your system. And this kind of incentive must be integrated with the blockchain system, and it must be money
then why is it currency, not legal currency, such as RMB, as an incentive
if RMB is used as incentive, because RMB should be stored in the RMB account, and the account itself is centralized, so it's easy to be controlled. Just think about why domestic bitcoin exchanges are so afraid of the central bank, and they are afraid of being weaned. In addition, RMB can't react with smart contracts within the blockchain
the electronic currency issued by the central bank can not be used as the original currency and incentive of a blockchain system. Why
if the central bank or a rich person wants to destroy a project, they just need to take out enough e-money to do enough nodes and attack 51%. Therefore, it is impossible to use the e-money issued by the central bank as the original currency and incentive blockchain system. However, blockchain projects with independent native currency and incentives have no such worries
If a person or organization wants to get enough nodes to carry out 51% attacks, it must first get more than 50% enough coins, and the amount of coins in the market is certain, so before it gets enough coins, the soaring price will make it hard for him to bear
therefore, a public chain project must have money. A public chain project without money is like a castrated person
in addition, only through the token and reasonable stimulation of output, can the proction relationship be changed and the value of blockchain be brought into play. Therefore, the project must have token, which can promote the development of the project faster. Token solves the problem of incentive and consensus, and incentive solves the problem of autonomy. The positive autonomous economic ecosystem and the underlying technology of blockchain are a perfect combination.
in the past two years, the word blockchain is very popular, and blockchain e-commerce will undoubtedly be the biggest wind outlet in the next decade. However, the instry is in chaos. Many people think that blockchain is money and have many misunderstandings about blockchain. So before we talk about blockchain, we should first talk about the idea of blockchain
blockchain is now understood by most people as "currency". There are too many coin cards in the coin circle, bitcoin and bitcoin. In fact, blockchain has nothing to do with currency. It is a technology, a business ecology and an idea. It is mainly applied in every field. It is extremely similar to the Internet. Talking about blockchain now is like the Internet 20 years ago. What did we talk about the Internet 20 years ago? When talking about its technical architecture, operating system, language, server and so on, it was said at that time that Internet e-commerce was deceptive, because many people had not been exposed to this aspect. In fact, many people have misunderstood blockchain, especially after being confused by the currency circle
When did jiuzero blockchain start? Jiuling started to investigate and prepare from 2016, and has about half a year to investigate all aspects of the blockchain. In 2017, it began to enter the field of blockchain. By 2020, it will be the fifth year. It has gained a lot of experience and achieved a lot in application. We've never played with coins, never engaged in ICO. In the first few years, we didn't make a lot of noise, that is, we should do a good job in technology, platform and browser, and apply them in traceability. We have done a good job in the application of traceability since 2017, and many procts have been launched; In 2018, more than 10000 procts will be applied in traceability. In 2019, it will be further promoted. This year, it will be further developed, and all procts will be opened up in the whole process of visualization. So at the beginning, we used it in the field of traceability. Since 2018, we have used it in the whole blockchain ecology, including blockchain traceability, blockchain invoice, sharing economy, supply chain finance, general points and other applications, as well as the platform technology services we built. We have entered this field in an all-round way, And relatively speaking, it is relatively mature and completely implemented
What's more, why is blockchain on fire now? Why does the development of blockchain reach the height of "thinking"? This is in line with the trend of the times
let's review the history of China's economic development in recent decades. The wealth of Chiang Kai Shek's time was concentrated on the local tyrants, evil gentry and warlords. Mao Zedong liberated most of the common people as peasants, and United most of them was more suitable for the situation of China at that time. Therefore, he defeated Chiang Kai Shek, overthrew the bureaucracy of the local tyrants, evil gentry and warlords, redistributed their wealth, developed the proctive forces again, and completely redistributed their revolution and distribution, Mao Zedong really realized serving the people and let the people live a good life. In the era of large collectives, people go to work in the countryside to earn points. According to the points you earn, how much food can you get. In Deng Xiaoping's time, I felt that this was not right. It might be that the efficiency was not high, and I ate a big pot of rice. Later, I started the reform and opening up. After the reform and opening up, the fields were divided into households according to the number of people. After that, the output increased a lot, which stimulated everyone's enthusiasm, increased the output and improved the efficiency. After the reform and opening up, commercial instrial enterprises began to develop
we can see that economic development is based on the needs of the times. China's reform and opening up has gone for decades, from the traditional economic era to the E-commerce Internet economy, and now the blockchain has come out, also because of the new problems of wealth distribution in the Internet era
in the Internet era, social wealth is highly concentrated on several platforms, such as Alibaba, Tencent, Internet, Jingdong, etc. the Internet e-commerce leaders have too strong a say in finance, resources, procts and other aspects. Social development has completely lost its balance. The uneven distribution of wealth has made the rich richer and the poor poorer. The instrial enterprises without money, including the whole of China, are now difficult to survive except for the monopolized central enterprises. At this time, there needs to be another revolution in business. The proctive forces must be redistributed and readjusted. It happens that blockchain is born to meet the needs of the era of transportation
the rules and mechanisms of blockchain are completely open and fair, can not be tampered with, and can not be decentralized. The oligarchs of institutions are removed to form a sharing economy for common development. Why does the government support blockchain so much? Because the government can fully enter the field of blockchain for supervision, and the privacy of citizens can be protected. Personal information in the Internet is not protected, and personal information in the blockchain is in their own hands. In the era of Internet e-commerce, oligarchs monopolize information resources. There are too many fake and shoddy procts and too many false information, so we have no way to distinguish them
at this time, the rule mechanism of decentralized supervision of blockchain emerges as the times require. Blockchain is not only a technology (it has made some improvement and promotion in the original Internet technology), but more importantly, it can solve the problems that cannot be solved by the Internet, traditional e-commerce and traditional ecology, such as traceability. Traceability in the Internet age can be falsified. A traceability source can be pasted anywhere, but the traceability of blockchain is different. The technology of blockchain is real. Everyone can participate together. Through distributed storage, everyone can get the data, and then all things can be traced, including procts and invoices, Including a person to send a message can be traced, stored, fidelity
the traceability of blockchain starts with raw materials, then proction and processing, then warehousing, sales, etc. every link should be visualized, with pictures, videos and words, which will leave traces of every link. Only in this way can we make everyone trust completely and be fair, open and transparent when there are too many fake and shoddy procts and lack of trust. In short, blockchain is to solve the problem that the Internet can not solve
when it comes to blockchain, bitcoin is the first thing that many people think of. In fact, bitcoin's contribution to the world is to put forward a rule and mechanism. Bitcoin itself has no value. It has no proct and no support. But its technology and concept are very good, because this technology can't be fake. The source code of this technology is open source and can be shared. Its technology uses the idea of blockchain
as soon as the rules and mechanisms of blockchain come out, they are sought after by everyone. However, in recent years, they have been confused by money. That kind of money is deceptive and runs counter to blockchain. On the contrary, it makes people distrust blockchain because they don't know enough about blockchain and think blockchain is money. Because if you want to understand a field, just like jiuzero blockchain has entered its fifth year, you are engaged in blockchain ecology, blockchain traceability, blockchain digital integration, blockchain technology development, blockchain browser development and so on every day. In this field, you are still learning constantly, because it is not easy to learn a field thoroughly. The reason why we have been very motivated in the past few years is because we know that it is a big trend and coming. Just like the Internet 20 years ago, many people don't believe, understand and turn a deaf ear to it. But ten years ago, Tencent, Alibaba, Huawei and other big enterprises got up. At the same time, now this opportunity is in front of us. Can we seize it? This is a question worth thinking about
finally, let's make it clear that blockchain has nothing to do with currency
for regular blockchain enterprises, the government has requirements and certification standards
standards: three basic requirements (patent, soft work, registered company in national blockchain Park, paid in registered capital, dedicated blockchain R & D funds), four landing application standards (blockchain browser, website, blockchain application scenarios, blockchain procts), five kinds of blockchain professionals (blockchain finance professionals, Blockchain digital professionals, blockchain credit management professionals, blockchain software development professionals, blockchain encryption technology professionals, and employees with bachelor degree or above who have been employed for more than one year) can get six basic subsidies
in the blockchain instry, there are at least tens of thousands of companies doing money and ICU. They all say that they are regular, but can they take out these certificates. The document points out that as long as the company has digital currency or ICO, it is not a blockchain company
under the background of this era, the ideas, rules and mechanisms, decentralized supervision and privacy distribution of blockchain can protect everyone's interests, redistribute proctivity assets, prevent the interests from being too concentrated on certain oligarchs and institutions, let everyone participate together, and let everyone exert their energy together to fight against counterfeiting, tax evasion, tax evasion, tax evasion, etc The real purpose of blockchain is to crack down on false transactions and create a conscientious ecosystem that can protect the interests of the people and provide hematopoietic function.
promissory notes, bills of exchange, bank notes and cheques in circulation in transactions are all credit currencies. It reflects the credit relationship between creditors and debtors. Compared with traditional money, electronic money has different backgrounds, such as social background, economic conditions and technological level; Its manifestations are as follows: electronic money is transmitted and displayed by electronic pulse instead of paper, which is processed and stored by microcomputer without the size, weight and imprint of traditional money; Electronic money can only circulate in the field of transfer, and the circulation speed is much faster than that of traditional money; Traditional currency can be used in any area, while electronic currency can only be used in credit card market; The traditional currency is issued by the state and circulates compulsorily, while the electronic currency is issued by the bank. Its use can only be guided by propaganda, not forced orders. In addition, in use, legal currency should be used to reflect and realize the value of commodities, and settle the creditor's rights and debts between commodity procers; The influence of e-money on society is wider and deeper.
first of all, we need to be clear - what is currency? In essence, money is an identification of collective will
no matter what form of money is, it needs human recognition of its value before it can be used for trading (it has three main characteristics: 1. Scarcity; 2. Difficulty to , proce or transport; 3. Economic value). This is true of shells, gold and legal coins
bitcoin relies on blockchain Technology (the so-called blockchain is to explore the potential value of human beings in the form of Computing). Generally speaking, for example, there is gold underground in South Africa, but it has not been mined. Do you admit that the gold can be traded? If you trust to trade, the bitcoin will be valuable, If you don't trust a computer, it's worthless data
in short, transactions divided by barter accidents are all public trust exchanges, so bitcoin (endorsed by human potential value) may also replace legal currency (endorsed by government tax); The biggest problem is that if the issue of bitcoin overdraw the future of mankind, our finance would collapse. Therefore, in the past 20 years, legal currency should still be the mainstream (at the same time, it is linked with taxes and rare metals, and the security is relatively high)
the content of this paper is based on xiaoshuo 2018 ~ introction to the economic system
I hope I can help you a little bit, thank you.