Who is expected to replace bitcoin in China
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
unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of currency circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity
according to the notice on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China. According to China's digital currency regulatory framework, investors have the freedom to participate in digital currency transactions at their own risk
warm tips: the above information is for reference only. Before investing, it is recommended that you first understand the risks existing in the project, and understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
response time: January 29, 2021. Please refer to the official website of Ping An Bank for the latest business changes
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