Digital currency value and inflation rate

1. 1. Its quantity is too small compared with the currency in circulation; 2. digital currency is generally not used to buy goods. So digital money will not inflate.

2. No, it can be said that 100% is a fraud. In fact, even bitcoin countries are not allowed to trade at present. It's better to speculate in stocks than to have that money

3.

1. The concept range is different. Bitcoin is a kind of digital currency, and the concept of digital currency covers bitcoin

However, some digital currencies have independent issuers

The biggest difference between bitcoin and other virtual currencies is that the total quantity of bitcoin is very limited and it has a strong scarcity. The monetary system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 million

digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy. Bitcoin is a digital currency

digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold

today's digital currencies, such as bitcoin, lettercoin and ppcoin, are electronic currencies created, issued and circulated by means of check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency

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illegal digital currency

in recent years, "virtual currency" represented by bitcoin, Ethernet currency and Leyte currency has been traded centrally on some Internet platforms. With the help of financial technology, the price of these "currencies" has graally spread to investment, financing and other financial fields, which has aroused wide attention from all walks of life

not long ago, the people's Bank of China and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly regulated the relevant behaviors. Experts pointed out that "virtual currency" is not legal tender (legal currency) issued by monetary authorities, but a specific virtual commodity in essence

therefore, it is undoubtedly a great legal and economic risk to think that "virtual currency" has or will have the nature of legal tender and to carry out speculation, network fund-raising, lending and financing

4. Inflation is the price rise that causes the devaluation of a country's currency. The essential difference between inflation and general price rise: general price rise refers to the temporary, partial and reversible price rise of a certain commodity e to the imbalance of supply and demand, which will not cause currency devaluation; Inflation is a sustained, universal and irreversible rise in the prices of major domestic commodities that can cause the devaluation of a country's currency. The direct cause of inflation is that the amount of money in circulation in a country is greater than its effective economic aggregate
deflation is deflation: when the amount of money in circulation in the market decreases, the people's money income decreases, and the purchasing power decreases, which affects the prices and causes deflation. The long-term monetary tightening will restrain investment and proction, lead to the rise of unemployment rate and economic recession
these two are inflation and deflation respectively.

5. Huang Mitong said that Yesi is that if there is less money in circulation in the market, his price will rise, because it is the principle of economics that the rare is the most expensive.

6.

Relationship: inflation is opposite to currency appreciation. Inflation will lead to currency devaluation, let alone currency appreciation

Inflation:

because the money supply is greater than the actual demand for money, that is, the real purchasing power is greater than the output supply, leading to currency devaluation, resulting in a sustained and general rise in prices for a period of time. Its essence is that the total social demand is greater than the total social supply

2. Currency appreciation:

under the condition of gold standard, increase the legal gold content of domestic currency and raise its price to foreign currency. Some countries adopt the method of appreciation of their own currency to prevent the impact of foreign currency and resist the import of foreign inflation

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the most direct manifestation of inflation is the devaluation of banknotes, the rise of prices and the decrease of purchasing power. Deflation is often accompanied by the decline of proction, the contraction of market, the decrease of enterprise profit margin, the decrease of proction investment, the increase of unemployment, the decrease of income and the lack of economic growth. The main performance is that the prices are low and the prices of most goods and services are falling

No matter what type of inflation, there is only one direct reason, that is, excessive money supply. Too much money supply corresponds to the fixed amount of goods and services, which will inevitably lead to currency depreciation, price rise and inflation

7. The rate of currency devaluation divides the amount of money that should have been flowing in the market by the amount of money now issued, while inflation is the total value of goods flowing in the market divided by the means of circulation. Answer 1: 8 * 80% = 6.4,6.4:1 answer 2: 8 * 120% = 9.6,9.6:1...... It's almost the same. Which is the change of exchange rate.