Can bitcoin become the next generation of currency

1.

According to analysts at Goldman Sachs, bitcoin can become a legal and widespread form of currency, but it is mainly possible in theory

Analysts believe that the reality is that cryptocurrency still has a very high threshold in most places. First, the government cannot track who is buying or selling bitcoin. And as we all know, the price of cryptocurrency is very vulnerable to large fluctuations. This volatility is very rare in legal tender, so bitcoin is not suitable to be a reserve currency

2.

Many people think that the reason why bitcoin is valuable is because it is "rare", and if bitcoin is no longer "rare", then it will not have value

this is a misunderstanding. Let's consider a question: what is the essence of all "currencies"

the answer is trust. The biggest reason for the value of the dollar is because of the credibility established for the dollar under the Bretton Woods Agreement, rather than the so-called equivalent exchange with gold (although others say so). The main reason why RMB is valuable is because of the trust system of RMB in China and neighboring countries, rather than the exchange with us dollar reserves (see offshore RMB). This can explain why the currencies of some countries (such as the ruble of Russia, as well as the Zimbabwean currency as you all know) have been greatly devalued, because the government and the current world situation have led to a trust system that does not support the existence of this currency. The so-called economic sanctions and currency speculation are very superficial and superficial reasons

the essence of money is trust

What about bitcoin

bitcoin has no centralized Trust Measurement institution. The value of bitcoin, namely its "credit system", comes from distrust of centralized units. Every country finds that seigniorage is too easy to collect, which leads to the increasingly poor trust between countries. Even the people of all countries do not trust the national currency

and trust, like quality, is conserved. Trust in centralized money decreases, while trust in decentralized money increases naturally

this is the essential reason why the value of bitcoin continues to rise. Therefore, for digital currencies such as bitcoin, there are only two outcomes. Either countries want to understand that they will no longer issue excess currencies, issue additional currencies in a scientific and reasonable way, unify stable exchange rates, and maintain the credit system of centralized currencies, then the value of bitcoin will be infinitely close to zero. Or countries will continue to drink water to quench their thirst, and more frantically use the method of issuing excess currency to collect seigniorage from everyone, then the trust in the centralized currency will be lower and lower, and the total value of bitcoin, a decentralized currency, will be infinitely close to the gross labor value of all the units that do not trust the government and other governments, but need international trade

either the price is crazy or it's worthless

after understanding these, we can answer this question. Will bitcoin be replaced by other digital currencies

swindlers like * * and even the old Wang next door can come and yell, "I spent 10 minutes to change bitcoin's core and create a new digital currency called SBC. Come and join my ICO and pay me seigniorage ~". So, if this happens, will you immediately choose to use Lao Wang's SBC next door

the answer is that some speculators will participate, but the market will not. The reason is very simple, the new cryptocurrency has not been recognized by the market, the application has not been proced, this kind of currency has no way to exchange for means of proction. Then this kind of currency is not money, but a virtual commodity for speculation. In other words, even if old Wang ICO next door has an SBC, no one will choose this kind of currency except those speculators who have no brains

in the current market, there are many other digital currencies, such as Ethereum, EOS, XRP, and so on, which may have technological advantages in some aspects (in fact, BTC has been evolving, and it will also learn from the advanced technologies of other digital currencies that have been successfully proved by the market. LTC and other currencies can be said to be the experimental currencies of BTC's advanced technologies.), There may be more application scenarios than BTC in the future, but they are not likely to challenge the status of BTC. BTC will always be the first consensus in the currency circle, which is the belief of many people. BTC will exist for a long time as the gold in the currency market, not mainly for the circulation of digital currency

3.

Bitcoin is a fixed amount of digital currency issued without the participation of the central bank. Bitcoin is built on the global P2P network, and countless P2P nodes all over the world are maintaining bitcoin's network 24 hours a day

bitcoin will become the world currency

the reasons are as follows:

1. Germany has recognized bitcoin as currency

2. the U.S. Court has also recognized bitcoin as currency

3. the answer on the first floor obviously does not understand the essence of currency. Today's currency is credit currency (what is credit currency? You can network), and credit currency is supported by credit, not gold. The gold standard collapsed after Bretton Woods. At present, the mainstream world currency is not backed by gold

5. bitcoin is a kind of credit currency, which is based on people's trust in bitcoin algorithm. The credit of real bitcoin is based on the P2P system mechanism of bitcoin

6. from shells used in ancient times to gold and silver, to paper money used now, to digital currency (the money on the bank card can be understood as digital currency), and then to bitcoin. This is clearly the evolution of money

   to sum up, bitcoin is the future currency and the future world currency

   Thank you

   
   

4. Digital currency is expected to be issued in 2017. Digital currency is different from virtual currency. The so-called digital currency is the digital form of legal currency

5. Bitcoin now uses professional mining machines. Ordinary computers are not competent, and the efficiency level is low, which is not enough for electricity charges
now the state has just issued regulations, and the relevant trading platforms are shutting down the relevant trading business, so the risk is very high, please be careful.

6. Let's put aside bitcoin and talk about the conditions for becoming a world currency:
1: convertibility
2: relative stability of value:
3: universal acceptance

in my opinion, there are no three bitcoins, so becoming a world currency is empty talk

7. Germany is the first country in the world to recognize bitcoin. It stipulates that citizens can use bitcoin to pay taxes or use it for other purposes. After that, France, Britain, the United States and other European and American countries have followed suit. However, in China, it is still not allowed. It can only be played on trading platforms such as fire coin and BTCC.