Does digital currency devalue

1. In theory, the central bank issues digital currency to replace paper money. However, this process is very slow, because the development of various regions in China is seriously unbalanced, and the acceptance of digital currency is also different. The digital currency trial run by the central bank is only applied to the bill market
in the future, there may be many digital currencies in China, and each digital currency will have its own application. For example, Puyin is a very interesting digital currency, which corresponds to the assets related to tea.

2. The current digital currency market is bleak, but it is optimistic in the long run. The following excerpts are from Babbitt community:
historically, the trigger of the bull market in 2011 was the report of Forbes magazine, while the trigger of the bull market in April 2013 was the Cyprus government's tax on deposits of more than 20000 euros. Some people think that the trigger of the bull market in November 2013 was CCTV's report on Canada's first bitcoin ATM and the US national debt crisis

although I can't predict which event will trigger the next bull market, the following candidates have great potential:

1. Inflation in Argentina or Venezuela will trigger the financial crisis. These two Latin American countries are suffering from severe inflation now. Once the financial crisis is triggered because they can't pay off their foreign debts, it is bound to lead to the devaluation of their currencies. Buying bitcoin to keep their value may become a choice for some people

2. The bitcoin fund of winkleworth brothers is officially listed. At present, it is still difficult for the United States to buy a large amount of bitcoin, which makes it inconvenient for some large institutions that look like bitcoin to enter, and bitcoin fund can eliminate this threshold. After all, the total market value of bitcoin is about US $8 billion. Once the purchase is no longer a problem, only a few hundred million US dollars can create a new bull market

3. Super heavyweight large multinational companies announced to accept bitcoin payment. Since the beginning of this year, bitcoin has been accepted by several well-known large companies, but Dell, the largest company with a market value of less than 70 billion US dollars. If one of Amazon, Google, Facebook, apple or even Wal Mart announces its acceptance of bitcoin, the shock will be quite different. Some people who have heard of bitcoin but are skeptical about it are likely to change their mind, which can also make many people who laugh at bitcoin for not buying anything shut up

4. After further research, Li Jiacheng decided not only to invest in bitcoin related companies, but also to buy bitcoin directly. It's still very easy to buy money in Hong Kong. Li Chaoren only needs to spend 5% of his wealth to buy money, which is enough to set off a bull market. This is not the money to follow suit because of its demonstration effect. Of course, it doesn't have to be Li Ka Shing, any super rich can

5. The collapse of Portuguese banks triggered the national debt crisis, and the Portuguese government issued a tax policy on deposits, which was repeated in April 2013

6. The truth of Malaysia Airlines mh17 came out and was shot down by Ukrainian Pro Russian forces. Europe and the United States decided to further increase sanctions against Russia. In order to counter it, Russia declared bitcoin legal and encouraged it to be used in international trade

7. A leader of Iran, North Korea or Cuba finally came to his senses and decided to trade with bitcoin to circumvent international sanctions. Personally, I'm optimistic about three fat people. I'm also a post-80s generation.

3.

The digital RMB red envelope of 10 million yuan issued by Shenzhen city has brought the development of e-money back to the people's vision

in fact, since April 2020, small-scale pilot projects of digital RMB have been carried out in Shenzhen, Cheng, Suzhou and xiong'an, and the pilot scale will be expanded to 28 provinces and cities in August 2020

as a socially recognized "super outlet", in addition to the high investment of digital currency related enterprises, its impact on the financial market is also of great research value

Policy evolution of the development of digital RMB

as early as 2014, the central bank has concted research layout on digital RMB, and discussed the development framework of digital RMB with major international financial institutions and research institutions in the 2016 digital currency seminar

after six years of development, China has initially developed the "pbctfp blockchain platform" and continuously promoted the pilot activities of digital RMB. It can be predicted that as today's technology and policy outlet, digital RMB will have excellent development prospects and extremely fast development speed in the next few years

Figure 1: Policy Evolution of digital RMB

with the improvement of China's national strength, digital RMB provides an opportunity to establish a "new system of RMB cross border settlement", which can promote RMB payment activities around the world and realize the internationalization of RMB

4. Yes, we do better in the world

5. First of all, you need to know that devaluation of national currency is a long-term and inevitable process. Only devalued currency has liquidity, and devaluation promotes liquidity

after that, digital currency is just a flicker. If it is regarded as something, it will not have any value support. If it is regarded as a kind of trade equivalent, it will have no trade value. To put it bluntly, there is no chance to make money now. We need to find a new way to make money. We just want to make each other's money. After the hot spot, we will return to zero, Spamming means that people who are short of money just want to fool around. It will be gone after a while.

6. Edison (1847-1931) was a famous American inventor. He was diligent, studious, thoughtful and hardworking all his life. At the age of 75, he also went to the laboratory on time every day to check in for work. For decades, he worked for more than ten hours every day and read for three to five hours in his study at night. If we calculate by the activity time of ordinary people's life, his life has been doubled. So Edison, on his 79th birthday, said to people with pride, I'm 135 years old. He lived to be 84 years old. He made 1100 inventions in his life. His greatest contributions were the invention of phonograph and automatic telegraph, the experiment and improvement of incandescent lamp and telephone. Edison began to study electric lamps in his early twenties. It took him more than 10 years. He used thousands of different materials, such as bamboo, cotton, graphite, tantalum, and so on, as filament materials to carry out experiments. He often reached the top of the sky. Once, he and his assistants worked continuously for five days and nights. In 1879, Edison used carbon filament as incandescent filament and ignited it for 40 hours. Because the surface of carbon fiber is porous, brittle and low strength. It was soon replaced by tungsten wire< In 1883, Edison discovered the phenomenon of hot electron emission, also known as "Edison effect", that is, some electrons or ions near the metal surface get enough kinetic energy e to the high temperature, so as to overcome the binding of the surface and escape from the metal. Edison effect is very important for the operation of all vacuum tubes. The cathode, as the emitting surface, is often coated with alkaline earth metal oxide to facilitate electron emission, and heated by electric current to maintain high temperature< In 1900, Edison invented the iron nickel battery, which is an alkaline battery with electromotive force of about 1.3-1.4 V, long service life and low efficiency.

7. In the short term, digital currency can not replace paper and coins.

8. Of course, China began to issue banknotes in the Northern Song Dynasty, forced the use of banknotes in the Yuan Dynasty, and semi forced the use of banknotes in the Ming Dynasty. There was a large-scale devaluation of banknotes in these three times, which was even more serious at the end of the Republic of China.

9. In China's credit monetary system, if the amount of money issued by the central bank is greater than the amount of money needed in circulation, it will cause inflation, and the currency will depreciate relative to other single currencies, that is, money is worthless. The inflation of banknotes as precious metal tokens is explained as follows:
inflation generally refers to the devaluation and price rise of banknotes caused by the issue of banknotes exceeding the amount of money actually needed in commodity circulation. Its essence is that the total social demand is greater than the total social supply< In modern economics, inflation means the rise of the overall price level. General inflation is the decline of market value or purchasing power of currency, while currency depreciation is the relative decline of currency value between two economies. The former is used to describe the national currency value, while the latter is used to describe the added value in the international market. The relationship between them is one of the controversies in economics
the circulation law of paper money shows that the circulation of paper money can not exceed the amount of gold and silver money it symbolically represents. Once it exceeds this amount, the paper money will depreciate and the price will rise, resulting in inflation. Inflation can only occur under the condition of paper currency circulation, but not under the condition of gold and silver currency circulation. Because gold and silver money has its own value, as a means of storage, it can spontaneously adjust the amount of money in circulation and make it adapt to the amount of money needed for commodity circulation. Under the condition of paper currency circulation, because paper currency itself has no value, it is only a symbol of gold and silver currency, and can not be used as a storage means. Therefore, if the circulation of paper currency exceeds the quantity needed for commodity circulation, it will depreciate

for example, if the amount of gold and silver currency needed in commodity circulation remains unchanged, and the amount of paper money issued exceeds twice the amount of gold and silver currency, the unit paper money can only represent 1 / 2 of the value of the unit gold and silver currency. In this case, if the price is measured by paper money, the price will double, which is commonly known as currency devaluation. At this time, the amount of paper money in circulation is double that of gold and silver money needed in circulation, which is inflation. In macroeconomics, inflation mainly refers to the general rise of prices and wages.

10. In theory, digital currency will graally replace paper money, and paper money will slowly disappear
digital currency has the main characteristics of network packets. This kind of data packet is composed of data code and identification code. The data code is the content we need to transmit, while the identification code indicates where the data packet comes from and goes
based on the characteristics of digital currency, the direct benefit of digital currency to the central bank is not only to save the cost of note issuance, circulation and settlement, but also to enhance the central bank's ability to control funds. Compared with paper money, digital currency has the advantages of lower issuing cost, lower transaction cost, traceable, and higher counterfeiting cost. Therefore, digital currency is a trend in the future
in China, some well-known application-oriented digital currencies have emerged, such as Puyin, which is very interesting and known as a standard digital currency.