The relationship between virtual currency and credit currency

1. The differences between electronic currency and traditional currency are: Security traditional currency: easy to forge, easy to lose and be stolen when carried with you; Electronic currency: the use of modern password technology, limited to legal person use, can avoid repeated use, strong anti-counterfeiting ability, no need to carry, can rece the risk of loss and theft. Anonymity traditional currency: anonymity and untraceability; Electronic currency: digital signature, authentication and other technologies are used to ensure the anonymity and untraceability of payment transactions. Convenience traditional currency: it must be used at fixed time; Electronic currency: the payment process is not limited by time and place, so it is more convenient to use. Cost traditional currency: high cost of issue, transportation and transaction; Electronic currency: no transportation cost, low issue cost and transaction cost. Decomposing traditional currency: not decomposable; Electronic currency: the size of the cash payment unit can be defined by itself and is not limited by the actual cash system.

2. So far, no one can guarantee the value of bitcoin. Bitcoin is a virtual currency without any actual credit support. Its real value lies in that when everyone believes in it, it is worth money. When everyone does not believe in it, it is worthless
of course, its selling point is to speculate that there is no inflation. However, a limited number of currencies is not absolutely inflation free, because the original price can rise or fall arbitrarily when people's confidence can not be guaranteed. This means that inflation can be as difficult to control as any currency

when gold has no monetary function, it at least retains the functional value of ornament and metal, and then it can become a real currency again through value exchange in any society with money
however, any virtual currency in the form of pure credit, whether it is paper money of a certain country or the so-called electronic currency, must have an equal amount of real wealth value injection before it can start to obtain the real form of credit guarantee and value, and then it can have the real credit value. Any so-called credit currency that lacks this process of injecting value and obtains guarantee is zero credit currency
as long as bitcoin does not have any social entity with economic credit (such as a government) to inject real value and make formal guarantee for it, it will always be just a nominal currency with legal credit equal to 0. Any country can take this form of electronic currency to improve the function of currency counterfeiting and other management functions, but this pure electronic currency itself can not be separated from the attributes and forms of a credit currency itself. For example, US dollar or RMB can be issued and managed in the form of this kind of electronic currency, However, this does not mean that the US dollar and RMB itself can be separated from an actual form of credit guarantee and valuation process to become truly valuable currencies
any certain amount of money can be diluted and decentralized by a larger number of other "nominal money with no equal wealth value" and suffer devaluation. For example, the central bank issues money to the market for use out of thin air; On the other hand, the dominant value of any fixed amount of credit money can also change when its real wealth assignment changes. When it is abandoned by the original credit supporters, the credit right of its real wealth value will also end. For example, a country whose economic expenditure is basically bankrupt, Even if the amount of money is fixed, it will fall to the bottom, because the money itself has lost the control of the original normal amount of wealth. However, when a currency has not been assigned a value by a formal political entity in the legal form and process, its value can only be empty

the above points are only for some mentally retarded people who may fall into financial fraud. I hope that those who don't understand will not participate in speculation and avoid losses. As for the specific financial knowledge, many experts actually understand that bitcoin, as a form of credit currency, is a relatively new electronic currency. Many people want to observe what specific reactions it will have in the actual actions of the society. On the contrary, it has not aroused much vigilance for its possible adverse effects

reference: bitcoin: so far = empty credit currency

hope to adopt

3. Introction: Lianxiang finance is a blockchain information media platform, focusing on the blockchain instry, providing blockchain enthusiasts with professional services such as blockchain project report, investment consultant, project analysis, market quotation, project roadshow and community service, including hot news, project interview, project report and instry policy
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4. Electronic money and credit money are not contradictory and interdependent
credit currency is generally referred to as sovereign currency, which has the credit endorsement of the country. Electronic currency can be the digitalization of sovereign currency, and there is no difference in fact. Of course, there are bitcoin, Ruitai coin, vitality coin, Wright coin and other currencies without government credit endorsement. These currencies rely on a trust relationship between people.

5. 1、 The basic characteristics of credit instruments include the following three points
1. Credit has sociality
firstly, the sociality of credit is reflected in social psychological factors. Credit is based on trust. Secondly, credit reflects a social relationship. Credit is not only an indivial behavior, but also a social relationship between the credit giver and the trustee. Finally, the sociality of credit has more and more influence on economic development and social life. With the development of the times, credit is always in the process of development and change
2. Credit has ethical and cultural characteristics
credit belongs to the category of ethics, which is reflected as a kind of moral code to restrict people's behavior. Credit is not only a kind of social relationship, but also a way of transaction. It is also a kind of value of human society. In terms of the cultural characteristics of credit, different cultural backgrounds have different understanding of credit
3. Credit has the basic characteristics of repayment and interest payment in the field of economy and finance
the basic characteristics of credit in the field of economics and finance is repayment and interest payment, that is, credit is a kind of lending behavior, and the condition of lending is to repay the principal on time when it matures, and pay the cost of using the fund interest. Here, credit is a special form of value movement, ownership has not been transferred, but changed the right to use funds< br />
< Second, the essence of credit can be elaborated from four aspects
1. From the perspective of ethics, the essence of credit is the "contract practice" behavior established between the parties participating in social and economic activities and based on honesty and trustworthiness
from the perspective of ethics, "credit" actually refers to a kind of moral quality of "keeping promise"< From the legal point of view, the essence of credit includes two aspects: one is the relationship between the parties, where the rights and obligations of both parties stipulated in the "contract" are not delivered at that time and there is a time lag, there is credit; The other refers to the rights and obligations of both parties in accordance with the contract
the general principles of civil law stipulates that "civil activities should abide by the principles of voluntariness, fairness, compensation for equal value, honesty and trustworthiness" The contract law requires that "the parties concerned should be honest with others, be honest and abide by their promises, and interpret the contract in accordance with the principle of good faith when disputes arise in the content, significance and application of the contract."< From the perspective of economics,
the essence of credit is the relationship between "borrowing" and "lending". Credit actually refers to "the expectation of getting a sum of money in a limited period of time"
credit refers to the value movement in which the credit giver, on the basis of fully trusting the ficiary to fulfill his promise, lends to the ficiary with contractual relationship in commodity exchange or other economic activities, and guarantees the return and appreciation of his principal< In the view of credit creation school, the essence of credit is money, and money is credit; Credit creates money; Credit forms capital< The basic functions of credit include five aspects:
1
by borrowing and lending, funds can flow to the projects with higher investment income, which can make the investment projects get the necessary funds, and the surplus units can get certain income; Through credit adjustment, resources can be transferred to the place where they are needed in time, so that resources can be used to the maximum extent
2. Accelerate capital turnover and save circulation costs
because credit can make all kinds of idle funds concentrate and put out, so that a large number of funds in a relatively static state can move, which undoubtedly plays a great role in accelerating the capital turnover of the whole society, and using various forms of credit can also save a large amount of circulation costs and increase capital proction investment
3. Credit accelerates capital accumulation and concentration
credit is a powerful lever to concentrate funds. The credit system can make the social idle funds concentrate in a few enterprises and expand the scale of enterprises< br />
< Credit effectively adjusts the national economy
the function of credit in regulating economy is mainly manifested in that the state uses currency and credit system to formulate various financial policies and regulations, and uses various credit levers to change the scale and movement trend of credit, so as to adjust the national economy< Credit promotes the development of international trade and the formation and expansion of world market

6. Credit money is a credit tool based on credit activities, which can play the role of money. The main forms of credit currency are commercial paper, bank notes and deposit currency. Commercial paper is based on the extensive development of commercial credit. It is a kind of written creditor's right certificate for the creditor who provides commercial credit to guarantee his claim to the debt. It is mainly divided into two kinds: promissory note and bill of exchange. Commercial paper can be circulated and transferred by endorsement, so it can play the function of currency circulation and payment means. It is a kind of bank paper. It is a kind of credit instrument which can be used for circulation and payment and is guaranteed by bank credit, so it is also a kind of currency. Deposit currency refers to the bank deposit that can play the role of currency, mainly refers to the current deposit that can handle the transfer settlement by issuing cheques
as an economic category, credit is a unilateral movement of value with the condition of repayment and interest payment. We should understand its essence from the following aspects:

first, credit is not a general lending behavior, but is conditional on repayment and payment of interest< Secondly, credit is a special form of value movement. There are many forms of value movement, and credit is realized through a series of loan repayment payment process. The unilateral transfer of value is in sharp contrast to the traditional simultaneous interpreting. Thirdly, credit is a kind of debt relationship. The lender is the creditor and the borrower is the debtor. The credit relationship is the unity of creditor's right and debt relationship

fourthly, credit is an economic category closely connected with commodity monetary economy. The credit of different societies reflects the economic relations of different societies

to sum up, we can be sure that in history, money was the main driving force of credit development. In other words, credit is based on currency circulation in history.

7. Deposit currency refers to the demand deposit of commercial banks that can be withdrawn at any time, which is also called demand deposit. As the current deposit can be converted into cash at any time, there is no difference between the bank's current deposit and currency. It is also a currency
credit currency came into being in the 1930s. Due to the global economic crisis, many countries were forced to break away from the gold standard and silver standard, and the issued paper currency can no longer be converted into metal currency, so credit currency came into being
as a general medium of exchange, credit money needs two conditions: one is people's confidence in this currency; the other is people's confidence in it; The second is the legislative guarantee of currency issuance. Both are indispensable. At present, credit currency can be divided into the following forms: 1. Its function is to act as a medium for small or sporadic transactions, mostly made of base metals. ② Cash or paper money. Its main function is also to serve as a means of purchasing people's daily necessities. Generally, it is paper money with circulation means, and its issuing right is exclusive to the government or financial institutions. ② Bank deposits. Also known as debt currency, depositors can deliver their deposits to others as the medium of commodity exchange with the help of cheques or other payment instructions
credit money is a credit tool based on credit activities, which can play the role of money. The main forms of credit currency are commercial paper, bank notes and deposit currency.

8.

There has been a close relationship between money and credit since ancient times. Money lending has not only come into being for a long time, but also become the main form of lending. On the one hand, it shows that the widespread existence of money in economic life leads to the conditions of credit expansion: the surplus and shortage of money require credit adjustment; The single currency as the object of borrowing and lending also makes it easy to form the rules that restrict the relationship between creditor's rights and debt. On the other hand, e to the expansion of money lending, the illiquid money flows, so that the shortage of financial money can be supplemented by the creation of credit circulation tools, which has become an important factor in promoting the relationship between commodity and currency. However, until the formation of the developed capitalist system, although they were closely related, they developed independently in their main aspects< With the establishment of capitalist economic relations, the situation has graally undergone essential changes. Credit money, such as bank notes and deposit money, has finally replaced metal coins and become the basic form of currency in circulation. In this case, any monetary system independent of credit activities no longer exists. Accordingly, any credit activity is also the movement of money

the expansion of credit means the increase of money supply; The tightening of credit means the decrease of money supply; The adjustment of credit funds affects the circulation speed of money and the composition of money supply departments and regions< when the movement of money and the activities of credit are closely related but develop independently, they are two categories. When the two are inextricably linked together, a new category, finance, comes into being. The so-called finance is the general term of monetary financing in the economic process

it includes currency issuance and withdrawal; Fund raising and borrowing; Cash collection and payment and deposit settlement of the bank; The issue and transaction of credit instruments and the monetary income and expenditure in international exchanges. In essence, financial activities redistribute social funds in the form of credit, so as to reallocate social resources and coordinate economic development. Its main characteristics in the way of activities are paid and interest paid; The main body of its activities are financial intermediaries and financial markets; The scope of its activities is in the field of monetary credit, and its main object is monetary capital. Its basic elements are: money and monetary capital, credit and bank and non bank financial institutions. But the formation of financial category does not mean that the two categories of money and credit no longer exist

9. A lot of paper money belongs to the national credit
the school card is the school credit
supermarket voucher is the supermarket credit
bonds, stocks, bank bills are credit tools