Virtual currency circulation and circulation

1. If virtual money wants to be related to real money, it needs a bond, an organization or a group to identify with, and establish a rule, then it has value. Without everyone's approval, circulation has no meaning

2. In the future, the value of virtual currency only depends on the number of people with money, whether there are entities under it, and whether it plays a role in promoting social finance, which determines its success or failure; Any currency is issued by the head office, which is a process system. The circulation is the quantity issued by the decision-making level of the headquarters according to the market research, which is based on the accurate market research

3. The definition and characteristics of virtual currency

the definition of traditional currency

traditional currency, that is, currency in the general sense, refers to the paper money and subsidiary currency issued by the central bank, which includes cash and deposits in circulation. Traditional currency has the functions of value scale, circulation means, payment means and storage means< (2) the definition and characteristics of virtual currency, also known as network currency, digital currency and electronic currency, is based on electronic information network, with commercial electronic machines and various transaction cards as the media, with electronic computer technology and communication technology as the means, and stored in the bank's computer system in the form of electronic data, And through the computer network system in the form of electronic information transmission to achieve circulation and payment function of money, is a new payment tool in the late 1990s

virtual currency is a currency symbol with no value of its own, and it is invisible. The exchange between the buyer and the seller is only reflected in the increase and decrease of the deposit balance in the bank account; At any time in any place that the network or device can cover, both parties can complete the transaction as long as there is exchange behavior; Virtual currency has the function of transcending time, space and region, which has greatly improved the speed and efficiency of money media transactions, greatly reced transaction costs, and promoted the process of globalization of capital flow and financial market integration. Virtual currency is a kind of non-standard currency, which has no geographical currency unit
the difference and connection between virtual currency and traditional currency

virtual currency combines cash in circulation with deposit organically by using electronic system. It has the characteristics of deposit in traditional currency, cash and non cash conversion and information display. In the scope of use, it is the same as the traditional currency, mainly used for small transactions; In commodity transaction payment, it also has the characteristics of autonomy of transaction behavior, consistency of transaction conditions, independence of transaction mode and sustainability of transaction process.

4.

The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system

bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system. Bitcoin network will automatically adjust the difficulty of mathematical problems, so that the whole network will get a qualified answer about every 10 minutes. Then bitcoin network will generate a certain amount of bitcoin as block reward to reward the person who gets the answer

5. These are different concepts, they are related to each other. The quantity of circulation depends on the central bank, and the quantity of demand depends on the economy itself. If the quantity of circulation is greater than the demand, it means inflation. If the quantity of circulation is less than the demand, it means deflation. Circulation is best understood. For example, a rich man has everything in his name. Luxury cars are equivalent to continuously depreciated assets, real estate is equivalent to precipitated assets, and funds that can be immediately mobilized are equivalent to circulation. In terms of quantity, circulation is less than circulation, and there is a proportion between them. Different economic structures and the quality of different economies have different proportions.

6. 1. Money circulation refers to the total amount of money issued by a country, usually including all the circulating and non circulating money. Among them, the circulating currency, namely the amount of cash issued, refers to the amount of cash issued in a certain period of time
2. Money supply generally refers to money supply; Supply of money, also known as money stock and money supply, refers to the sum of cash and deposits in circulation at a certain point in time. Money supply is one of the main economic statistical indicators compiled and published by central banks of various countries
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7. The circulation of paper currency only represents the amount of metal currency needed in commodity circulation. In the case of inflation, the circulation of paper currency exceeds the amount of metal currency needed in actual commodity circulation. In this case, the amount of metal currency represented by unit currency decreases, which leads to the devaluation of paper currency and the rise of prices. Because money has the function of circulation and storage, in the case of inflation, saving money in the bank can rece the number of banknotes circulating in the commodity market, thus turning money into stored money and withdrawing from the circulation field. When people put a lot of money in the bank, they can curb inflation and make prices fall. Of course,
only when the money stored in the bank is put on the commodity market can it become the amount of money in circulation
the circulating value of unit currency = the legal value of unit currency stipulated by the State - the manufacturing cost of unit currency
the amount of money to be issued in this year = the after tax profit of the whole social enterprise in this year + the fiscal surplus (or deficit rection) in this year
(the amount of money to be issued in this year = the circulating value of unit currency * the amount of money to be issued in this year) the rate of money to be issued = {the amount of money to be issued in this year of the whole social enterprise After tax profit of the instry + fiscal surplus of this year (or deficit rection)} / total GDP * 100%

8. Money supply refers to the money stock of a country serving the social and economic operation in a certain period. It is composed of deposit money and cash money supplied by financial institutions including the central bank

broad money supply: at the present stage in China, it refers to M1 plus time deposits in banks, savings deposits of urban and rural residents, foreign currency deposits and trust deposits of organs, groups, troops, enterprises and institutions. M2 can be used to observe and control the equilibrium of medium and long-term financial market. Generally, the increase of M2 should be controlled within the range of the sum of economic growth rate, price rising rate and the change degree of money circulation speed

money supply in a narrow sense: money supply refers to the money stock that the whole society undertakes the means of circulation and payment at a certain point in time. At present, China divides the money supply into three levels: one is the cash in circulation M0, that is, the cash circulating outside the banking system; The second is the narrow sense of money supply M1, that is, M0 + enterprise current deposit + rural deposit + organ group army deposit + personal credit card deposit. The third is broad money supply m2, that is M1 + fixed deposit in enterprise deposit + resident deposit + foreign currency deposit + trust deposit<

currency circulation:
refers to the total amount of currency issued by a country, usually including all the circulating and non circulating currencies
cash issuance refers to the amount of cash issued in a certain period, that is, the amount of currency in circulation
its calculation formula: the actual amount of money needed in commodity circulation = total commodity price / times of commodity circulation

9. This is also a way to maintain the temporary stability of the currency

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