The paper of the Leyte coin

2.

Bitcoin, English name bitcoin, is a digital currency based on blockchain technology, which is composed of a series of computer-generated complex codes. Like RMB's ￥ and US dollar's $, bitcoin has its own symbol, the "B" in the figure below

The inventor of

bitcoin is Nakamoto. Satoshi Nakamoto is the creator of bitcoin protocol and its related software bitcoin QT. In 2008, he published a paper called "bitcoin: a peer-to-peer electronic cash system", describing an electronic currency and its algorithm that he called "bitcoin"

In 2009, he released the first bitcoin software and officially launched the bitcoin financial system

In 2010, he graally faded out and handed over the project to other members of the bitcoin community

Nakamoto is believed to hold about one million bitcoins. If the price of each bitcoin was $2W, it was worth $20 billion at one time. So far, his true identity is still unknown to the outside world, that is to say, no one knows who Nakamoto is

bitcoin appeared after the global financial crisis in 2008. In fact, before that, many people have tried electronic currency, digital currency and virtual currency, but they have not succeeded. There are not only technical reasons, but also social environment and economic background reasons. To some extent, it was the 2008 financial crisis that gave birth to bitcoin

3. Currency is original.

4. It seems that we can start from the diversified development of economy

5. Bitcoin's impact on the financial system paper, requirements, original

6. Bitcoin (English: bitcoin, abbreviated: BTC, currency symbol: &3647;) It is a kind of user autonomous and universal encrypted electronic currency

the concept was proposed by Satoshi Nakamoto in 2008. Then, based on the concept of openness, peer-to-peer, consensus and direct participation, combined with the working mode of open source software and block cipher in cryptography, he developed an operating system for bitcoin issuance, trading and account management on the platform of P2P peer-to-peer network and distributed database. The system enables all nodes throughout the peer-to-peer network to reach a network agreement according to their seed files, so as to ensure fairness, security and reliability in currency issuance, management and circulation. And promised that bitcoin will become "e-cash" similar to e-mail. It can avoid inflation without examination and approval, and everyone has the right to issue it; After the payment is completed, the user loses the ownership of the bitcoin. On January 3, 2009, 50 bitcoins came out

unlike traditional currencies, the operation mechanism of bitcoin does not rely on the support or credit guarantee of the central bank, the government and enterprises, but relies on the network agreement reached by the seed files in the peer-to-peer network. The decentralized and self-improvement monetary system theoretically ensures that no one, institution or government can control the total amount of bitcoin, Or create inflation. Its total amount of money graally increased at the designed rate, and the increase rate graally slowed down, and finally reached the limit of 21 million in 2140

there are many ways to use bitcoin, which can be converted into local cash or gold coins through electronic currency exchanges, service providers and indivials; It can also be used directly to purchase goods and services. With the rapid growth of indivials, organizations, businesses and enterprises receiving bitcoin payments, the exchange rate has risen thousands of times in four years. As of March 30, 2013, the total value of all issued bitcoin has exceeded 1 billion US dollars after being converted into US dollars according to the market price. Although bitcoin is currently the most widely used electronic currency, in addition to some countries have explicit provisions on virtual currency, there is no legal regulation and protection for the issuance of bitcoin in any country.

7. The issue of money involves how to transform utility into price. Therefore, only the utility without money, there is no way to explain the price by the utility. Here are some of my discussions. Please have a look and criticize< 5. Currency and price 1. Medium of exchange:

if every exchange subject participating in the exchange can realize the exchange, there must be a one-to-one complementary relationship among the exchange objects within the scope of exchange. That is to say, every consumer has the need of the receiver; And every consumer that needs to obtain has the supply of the transferor. The lack of this complementary relationship means that the exchange cannot be completed. But this is only a necessary condition for the final completion of the exchange; Only with this condition can not complete the exchange

if the scope of exchange is limited to two parties, and there is such complementarity between the two exchange subjects, the conditions of two-way barter exchange are met, and the exchange will be carried out and completed according to the above described process. If there are many exchange subjects, and this kind of complementarity does not exist between two, but only indirectly exists between more than three or more exchange subjects, the exchange of things will be difficult

take complementarity as an example, See the following table:

commodity exchange subject

A B C

m dam SBM
n San DCN
P DBP SCP

d = need
s = available

as can be seen from the table, There is complementarity in the scope of exchange, but there is no complementarity between the two; In this case, to complete the exchange, there are only two possibilities:

1) one of the exchange subjects must have the ability to obtain a kind of consumer whom he does not need through exchange, and form a long-term complementary relationship after the first exchange; In the second exchange, the mutual complementation is realized; The realization of complementarity in the second exchange is the guarantee and premise of medium and long-term complementarity in the first exchange

2) after the first exchange, one of the exchange subjects loses a kind of consumption object which is in equilibrium and needs by itself, and after the first exchange, it also forms a long-term complementary relationship to be realized; In the second exchange, the mutual complementation is realized; The realization of complementarity in the second exchange is the guarantee and premise of medium and long-term complementarity in the first exchange

in this process, the exchange subject who undertakes the two exchanges plays the role of media exchange subject, while the consumer who is exchanged twice plays the role of media exchange object

in the process of mutually complementary exchange, for both sides of the exchange, the object of exchange is also the object of consumption; In the process of exchange participated by the media exchange object, for the media subject, the media exchange object only has the nature of exchange object and consumption object in the final exchange, but only exchange object in the first exchange. This is true regardless of media mode (1) or (2)

therefore, there is a complementary exchange process, but there is no complementary exchange process. If there is a pure exchange object that eventually becomes the consumption object. Because it can eventually become the object of consumption, it is simply used as the object of exchange. It constitutes a special exchange object

generally speaking, in order to complete the final exchange in a larger scope, such a special kind of media exchange object is needed: it is a kind of consumption object in the end, but it was only pure exchange object before. It is possible that this kind of exchange object depends on several consumption objects, but they must all have the same nature

take the above table as an example:

suppose that the consumption object P has the above properties

A obtains P and transfers n; C get n, p<

the second exchange between a and B:

A obtains m and transfers P; B get P, transfer m

through two exchanges, the triangular complementary relationship of exchange subject can be realized<

commodity exchange subject
A B C

m dam SBM
n San DCN
P (DAP) (SAP) DBP SCP

d = required
s = available
Black: 1 delivery Change
Red: twice exchange

commodity p in brackets plays the role of exchange medium; Exchange subject a plays the role of media exchange subject

this is a graphic demonstration of media mode (1). Media mode (2) can also be explained in this way (omitted)

special consumption objects with the above properties are called media exchange objects< For those who are both consumers, the exchange proportion is determined by the marginal utility of the exchange to their respective owners; As a medium of exchange, the subject of media exchange does not need to exchange (transfer or obtain) the goods. The so-called "no need" means that we are in a state of marginal utility equilibrium, with whom? The marginal utility after exchange with other exchange goods is balanced, otherwise the new imbalance will proce further exchange power. Therefore, there must be the following balance between a and P, which play the role of media subject:

(Sam+ Δ Sm/Damo=Sap/Dapo=San- Δ SN) / Dano

therefore, the exchange equations with B and C are:

the first exchange:

(SCP)- Δ Sp/Dcpo=Scn+ Δ Sn/Dcno

San- Δ SN) / Dano = SAP / Dapo

second exchange:

(SAM)+ Δ Sm/Damo=Sap/Dapo

Sbm- Δ Sm/Dbmo=Sbp+ Δ SP ') / dbpo

combine the above equations and Δ Sp= Δ Sp'de:

(Sam+ Δ Sm/Damo=San- Δ Sn/Dano

Sbp+ Δ Sp/Dbpo=Sbn- Δ Sn/Dbno

Scn+ Δ Sn/Dcno=Scp- Δ The solution of the system of equations (SP) / Dcpo

) δ Sm， δ Sn， δ SP is the exchange volume at equilibrium; And the ratio of the three solutions to each other, δ Rmn， δ Rmp， δ RNP is the exchange ratio in equilibrium

the above equations can also be obtained directly according to the equilibrium equations of a, B, C to exchange goods:

a needs m, and N can be sold; Equilibrium equation of marginal utility:

(Sam+ Δ Sm/Damo=San- Δ SN) / Dano

B needs P and can sell M; Equilibrium equation of marginal utility:

(SBP)+ Δ Sp/Dbpo=Sbn- Δ SN) / dbno

C needs N and can transfer P; Equilibrium equation of marginal utility:

(SCN)+ Δ Sn/Dcno=Scp- Δ SP) / Dcpo

above constitute the system of linear equations with three variables:

(Sam+ Δ Sm/Damo=San- Δ Sn/Dano

Sbp+ Δ Sp/Dbpo=Sbn- Δ Sn/Dbno

Scn+ Δ Sn/Dcno=Scp- Δ SP) / Dcpo

generally speaking, as long as there is complementarity in the exchange range, and there is no pairwise equivalent complementary exchange relationship, there must be a system of multivariate equations composed of the same number of exchange volumes to be solved, and the same number of exchange proportions can be obtained

it can also be seen from the above example that if P is used as the medium of exchange, although a does not need it, it also needs to exchange with it, and the determination of the exchange proportion is not determined by the marginal utility of P to a, but by the marginal utility of P to B and C solved by the marginal utility equilibrium equations of all participants in the exchange. Therefore, the exchange ratio between any exchange object and exchange medium is affected by many exchange objects and their marginal utility

moreover, as an exchange medium, like other exchange objects, in order to complete the exchange, there must be a complementary relationship to the medium within the scope of exchange, that is, there must be the demander and the transferor of the medium<

fortunately, many of the consumption objects needed by human beings are common. Therefore, as long as the exchange ratio between the exchange media and these common consumers is determined, the exchange ratio between the media and other goods will be determined by the exchange ratio between other goods and these basic goods, and there is no need to solve a larger system of equations. But at least we have to solve the ternary equation, which is determined by the existence condition of media (that is, at least three parties participate in the exchange and have no complementary relationship with each other)

3. Currency, the ultimate medium of exchange, has the nature of being able to exchange to the required consumer only in the long term, which is the nature of "credit". A medium of exchange that can work for a long time must be a good "credit" item. To ensure this, firstly, the medium of exchange must be a kind of goods that people need, that is, a kind of consumption object; Second, the marginal utility of the medium to the final consumer must be large enough that there is no possibility of abandoning the medium; Thirdly, the consumers who ultimately consume this consumer must have enough items for most media users to exchange at any time. These three points guarantee the "credit" quality of the medium of exchange in terms of utility and material object

but the real function of the goods with "credit" is media exchange, which requires that the media goods must have the attributes of easy to use, easy to carry and store, easy to divide, easy to measure, and not easy to damage. These attributes can be collectively referred to as "utility."

the unification of "credibility" and "materiality" is the standard of a qualified medium of exchange

goods that meet this standard evolve into money

the article "gold" has such a standard, so gold becomes a qualified currency

first of all, it is a kind of consumption object, a kind of high-level decorative consumption object, which means that it meets the needs of a higher level; And this kind of high-level needs only come into being after the low-level needs are met. Therefore, the people with such needs must be the main body with enough low-level consumption objects. This ensures that there are enough items to be exchanged with. Second, gold is scarce. This is determined by natural reserves. This ensures that the existing stock of gold is less and the marginal utility of gold is higher. These two points guarantee the "credit" quality of gold. In terms of "practical" quality, gold is also qualified. It is very convenient to measure, carry and store. So gold is the natural ideal currency

4. Marginal utility of money:

is the marginal utility of 100 yuan in the hands of a rich man the same as that of a poor man? In the process of barter, the exchanged goods have two properties: the object of exchange and the object of consumption. However, the al nature of money is separate. As a medium of exchange, it is only a pure object of exchange; As a pure exchange object, it has no marginal utility. Only when it satisfies human's desire because of its natural property can it become the object of consumption, and only when it performs the function of the object of consumption can money have marginal utility. Therefore, there is no marginal utility of money for those money holders who only exchange money. The marginal utility of money only depends on what will happen in the end