How to maintain the stability of digital currency

1. 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. Digital currency is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of a specific virtual community. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form. Digital currency is a kind of venture capital. Some people can make profits in this market, while others can make losses in this market. To make money, digital currency can be invested by mining and trading on the platform. Digital currency has price fluctuation and is investable in theory

warm tips: the above explanations are for reference only, without any suggestions. There are risks in entering the market, so investment should be cautious. Before making any investment, you should make sure that you fully understand the nature of the investment and the risks involved in the proct. After a detailed understanding and careful evaluation of the proct, you can judge whether to participate in the transaction
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2.

A: the connotation of stable currency

1. The stability of currency value is the ultimate goal of the central bank's monetary policy

When the price rises, the value of currency will decrease; When prices fall, the value of the currency rises

3. Since its establishment, Beijing Digital Capital Technology Co., Ltd. has been committed to studying how to effectively solve the instry pain point of "traditional instry + blockchain". Various projects emerge in endlessly in the blockchain instry, and the technology has been innovated repeatedly. At present, the hottest topic is "stable currency". Beijing digital technology has also been supporting the stable currency system, bringing new development opportunities for the blockchain instry
what is stable currency
stable currency, as its name suggests, is a cryptocurrency with stable value, and its exchange ratio with legal currency remains relatively stable. Because the exchange ratio between legal currency and goods and services is relatively stable, the ultimate anchor of stable currency is goods and services, that is, the actual purchasing power
stable currency originated from usdt (benchmarked US dollar) issued by 2014 bitfinex established tether limited. The opportunity for the birth of cryptocurrency is that the mainstream currency accounts for the vast majority of the market value, but the price fluctuates violently, which makes the liquidity of cryptocurrency market decline. In this case, in order to protect their assets, investors need to find a better way to store value, so the stable currency market arises at the historic moment
the essence of stable currency is a kind of accounting voucher
modern banking system is based on the central bank at the bottom, commercial banks at the top and financial technology companies at the top. Their basic prototype mainly comes from the double entry bookkeeping which was born 500 years ago. Even after so many years, the banking system is constantly developing and changing, but its core is the centralized account system, which depends on the central bank. When we transfer money from one account to another, we are actually making account changes through the bank. When using stable currency for transfer and remittance, it completely transfers from its own account book to another account book. The essence of stable currency is a kind of bookkeeping voucher
some people would say, isn't Alipay also using block chaining technology? On this basis, Alipay upgraded and upgraded the account book, which is two different schemes based on the stable currency issued by block chain technology. You see that money is transferred from a Alipay account to another Alipay account, but it is still operated in the central bank's account system.
why is stable currency the future of blockchain
at present, stable currency is mainly used to provide channels for legal currency to enter the cryptocurrency world, help currency people avoid risks in transactions, and provide payment services for blockchain application projects. Although the current digital currency market is not too optimistic, but the cryptocurrency project is in constant development. The number of stable currencies on the market has already exceeded 50, and is still on the rise. 2019 is bound to be the year of stable currency outbreak. How did stable currency break through in the wave of digital currency? Why is stable currency the future of blockchain? This involves how stable currency affects the blockchain instry
tickets for users to enter the market
after "94" in 2017, China banned the market circulation of cryptocurrency, restricted banks and other financial institutions as payment platforms or channels, and many countries also restricted the circulation of cryptocurrency. But there are still a lot of users who want to enter the market, they will choose over-the-counter trading and trade through the community. But because of the uncertainty, opacity, small scale and other problems, OTC has some trading risks. Usdt, a stable currency anchored to the US dollar at a ratio of 1:1, has become a supplementary scheme for some new funds
the insurance medium of user assets
in the weak market, the price of token fluctuates greatly, and traders do not want to take risks or leave the market. In the case that the trading platform does not support legal currency trading pairs, it is almost the only choice to use "stable currency trading pairs" to exchange for stable currency
the emergence of stable currency is the proct of a special historical stage e to the contradiction between the rapidly developing demand for token investment and the restriction of legal currency admission by regulation. The more serious the price fluctuation of mainstream currency is, the more valuable the existence of stable currency is
"trade as settlement" is an efficient payment and settlement tool
blockchain technology has great value in the field of payment and settlement. With the emergence of JPMorgan JMP, many banks around the world have begun to explore how to use blockchain technology to issue stable currency. The "stable currency" issued by these banking giants is essentially using a convenient and efficient settlement network based on blockchain technology. The more financial institutions and customer groups join the network, the greater the value of the settlement network
as JPMorgan Chase, IBM and Facebook have revealed that they want to issue currency, stable currency has once again set off an upsurge. After the strong fluctuation of usdt in the second half of 2018, it was derided as "unstable stable currency" by many people, so Pax, tusd, GUSD, etc. followed closely. Seizing the market quota of stable currency is very fierce for a time, but the fierce market competition means that there is not much space left in the market, and no matter how much stable currency there is, it seems meaningless. Then the major exchanges began to launch their own platform currency. JPMorgan Chase, IBM and Facebook also entered the market. The situation of stable currency also changed greatly. Facebook and JPMorgan have both broad user base and far-reaching economic impact, and issuing currency will certainly have inherent advantages. Beijing Digital capital technology, which is deeply engaged in the study of the significance of stable currency, has made practical application of stable currency in postal, supply chain finance, lottery and other fields. It is understood that the world's first African blockchain lottery will also be released in the near future. In this way, we can certainly expect to stabilize the currency market.

4.

We know that wealth comes from the continuous flow of capital, only the flow of capital can proce wealth. Market and demand are important factors for capital circulation. Digital currency provides such a market platform for capital flow

because one of the attributes of digital currency is that the total amount is constant and there is no additional issue, which leads to a unilateral upward market trend

on unilateral rise:

many people are more and more aware that digital assets are a trend. More and more investors from business, political and social circles will buy some digital assets more or less now, but the supply of digital assets is limited, and the amount of funds involved is unlimited, That is to say, there are always more buyers than sellers, which leads to the phenomenon that scarcity is more expensive

A large number of facts have proved that digital assets are the best way of capital flow, because it can make capital flow continuously, so as to appreciate and generate wealth

5. There are many factors that can affect the price of digital currency, which can be summarized as follows:

1. The factor of investment supply and demand is actually not independent, and investors' demand for digital currency is also affected by various news factors. However, from the price surge of last year, in the absence of obvious policy and other news, The admission of investors and investment institutions will also promote the price growth

2. Policy factors are also important factors affecting the price of digital red packets. In the past, the implementation and formulation of policies in South Korea, Japan, the United States and China have affected the price trend of bitcoin

3. The real financial factors and the instability of the real financial world make the demand for digital assets rise from time to time. For example, the Chinese government's policy adjustment, the brexit of the UK, the setback of the global stock market at the beginning of 2018 and other events all give play to the hedging characteristics of digital currency

4. Technical factors. Although the security of digital currency has been highly respected in its development, several technical crises still occurred in its development history. For example, bitfinex, the largest bitcoin dollar exchange, was attacked by hackers and stole 120000 bitcoin, and bitcoin fell by 25% in the following six trading days

5. Good news and bad news will affect the fluctuation of currency value

6. The market trend will be affected by the actions of the leading enterprises in this field, platforms, digital currencies with large market share, leaders with great influence in the market, etc

besides, choosing a good project can avoid risks to a certain extent. For example, HNB, the next generation of decentralized blockchain economy, is a reliable project. It relies on the real economy, and at the same time uses value exchange to continuously create endogenous value. It uses blockchain to build an economy, so that everyone can participate in it and get returns through labor, instead of relying on currency speculation.

6. Defi fever is obvious to all. Conferences, small meetings, large and small, are all talking about defi. After all, the functions of financial giants are moved to the chain by agreement. There are countless stories to tell. Of course, the most important thing in the capital market is the story. Sing well in the song, listen to other people's stories and decide. As investors, we are concerned about how to make money from the arbitrage of stories
in the story of defi, there have been eye-catching opportunities to make money before, and the hype of compound and its token comp has attracted much attention, but this is only a way to make money. This path revolves around the defi project launched by the central exchange. Because of the central exchange, this opportunity is naturally highly concerned by the market

there is another way to focus on the decentralized exchange (DEX) such as uniswap. Because the DEX platform has just emerged and its influence is limited, this path has received much less attention. Of course, just because the platform is still new and decentralized, the way to play is relatively "wild". For example, UMA, another hot defi project, was pulled out several times in minutes in uniswap

from the perspective of risk and return, the above two ways of taking advantage of opportunities, considering that the centralized exchanges, especially some big exchanges, have more or less the need to maintain their own goodwill, the projects on the platform have to pretend to play more or less, not too much, because the above defi projects will relatively leave us more time and space to react, The risk is relatively small. Therefore, in order to give priority to protecting the principal, we can give priority to allocating funds to these projects, and use these projects as the "positive battlefield" of participating in the defi opportunity. However, the online projects of the decentralized exchange fluctuate greatly and have some characteristics. But such volatility is also a good opportunity for arbitrage, so we can also consider allocating a small part of the funds
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7.

Nowadays, people's lives have undergone earth shaking changes. Shopping methods and work habits are being overturned. From the cash age to the Internet age, code scanning payment is becoming more and more convenient in all aspects, and the zero cash mode of clothing, food, housing and transportation has been fully realized. It must have never been thought about before. Now it is actually a reality, but this way will also say goodbye, Did you think of it? In an era of progress, there will be constant updates and iterations

according to the relevant reports, the next digital currency will be carried out in 28 regions such as Chongqing. According to this form, it will become a reality in the next few years. After the popularity of digital money, there will also be other ways of payment, but there are always lots of people who are willing to try new things. After experiencing the comparison, WeChat Alipay's two-dimensional code payment may really have to meet again. It is more secure than that. It does not need to bind the bank card, nor does it need the help of the third party platform. It's more convenient

which way do you prefer? Welcome to discuss

8. Digital currency has no value base, and many of them are gimmicks of MLM game
at present, it is impossible to shake the status of legal currency

9. It can be used abroad. However, the risk of digital currency is too great, and the currency value fluctuates greatly, so it is not worth investing.

10. Yes,
the goal of monetary policy refers to the ultimate goal that the central bank expects to achieve through the formulation and implementation of monetary policy. Generally, it should have the characteristics of convergence, long-term and controllability. The goal of monetary policy is graally formed with the development of economy and society. All countries in the world basically regard price stability, full employment, economic growth, balance of payments and financial stability as their monetary policy objectives
the goal of China's monetary policy is to maintain the stability of currency value and promote economic growth. The goal embodies two requirements: first, stabilizing the currency value is the starting point and destination of the people's Bank of China's monetary policy. Even if we take into account the requirements of economic growth in the short term, we must still adhere to the basic foothold of stabilizing the currency value. Second, the two goals of currency stability and economic growth are not parallel, but are hierarchical, primary and secondary. In terms of level, stabilizing currency value is the first level of monetary policy goal, while promoting economic growth is the second level; From the primary and secondary point of view, stabilizing the currency value is always the main thing. The central bank should promote economic growth on the basis of maintaining stable currency value. The law of the people's Bank of China does not limit monetary policy objectives to single, double or multiple objectives, but creatively expresses them as single objectives with different levels and priority.