Gold, paper money, virtual currency

1. Understanding of the concept of virtual currency
(1) virtual currency based on entity
since ancient times, all "money" made of paper is called paper currency, and all countries in the world are actually paper currency. In Marx's time, paper money was only a symbol of metal money. The actual gold content of paper money was equal to the nominal gold content. When the nominal gold content was greater than the actual gold content, the price index of metal money would increase because of too many paper money. When it exceeded a certain limit, inflation would occur. Marx called these over issued bank notes without gold as guarantee virtual currency. In Keynesian era, paper money was the symbol of GDP. He defined the issue of paper money caused by making up the fiscal deficit as deficit money, and believed that the issue of paper deficit money could promote the development of proction to a certain extent, but only cause half inflation. Zhang chunjia's research in "Introction to virtual currency" also proves that paper money without precious metal and GDP guarantee will cause price rise, and this kind of money is called virtual currency
(2) virtual currency based on virtual
virtual currency is a new type of currency emerging at a certain stage of network social and economic development to meet the security and convenience needs of users. It represents the development direction of future currency existence form. It comes from the Internet, and acts as a general equivalent in the network society completely or partially. Virtual currency is a real currency with the basic attributes of currency, but it is virtual and depends on the network virtual environment. Virtual currency is born without borders, which makes it more liquid than traditional currency in the world. Virtual world corresponds to the real world. Through the exchange relationship between virtual currency and traditional currency, under certain conditions, specific virtual currency can buy physical goods, and traditional currency can also buy specific virtual goods< Second, the characteristics of virtual currency
1. Value: users get utility value by consuming the procts and services provided by operators. Virtual currency has value by providing exchange to meet the utility of consumers. The quantity of virtual currency measures the value of general goods. The issue essence of virtual currency is credit issue, which is the creditor's right of the holder to the issuer. To a certain extent, the value of this kind of claim is the right of claim
2. Virtual environment dependence. The existence of virtual currency is based on the virtual economic environment provided by the issuers and the sustainable operation of the issuers themselves. Otherwise, virtual currency has no significance.
3. Short sighted currency. As the highest price in the process of commodity exchange, the form of currency value can be regarded as the real currency. Because of the limitation of circulation scope, virtual currency can not be used as the general equivalent of all commodities; But in a certain range, it has the function of monetary value scale and circulation means. Therefore, it can be considered that virtual currency is similar to the form of money value, and it is a primary form of money, which is similar to money< The issue and circulation of virtual money is limited, but it will enlarge the money supply through the money multiplier effect, and affect the difficulty and accuracy of macroeconomic regulation and control. The issuers of virtual money need to report their circulation and circulation to the central bank, and obey the unified management of the central bank at any time
5. Virtual currency, which is issued by non-financial entities outside the financial system, aims to obtain business opportunities and competitive advantages. It is a market behavior and will inevitably lead to competition among issuers. This kind of competition will proce unfair competition behavior or obtain competitive advantage through rent-seeking, which determines the need to regulate the market behavior of the market subject according to the laws and regulations
6. Virtuality: as a kind of approximate currency, virtual currency is virtual existence if it only exists in the virtual world and can purchase the virtual property in it; If it is linked with sovereign currency, it can exist in the real world and purchase real assets, then it is a virtual thing of sovereign currency. Virtual currency is actually a series of data files existing in the computer system. It has the meaning of virtual currency only after the issuers explain the system. Therefore, the existence form of virtual currency is virtual< In general, virtual currency can purchase the procts and services provided by the issuers, and it can also be exchanged with the issuers outside the scope of issuance at a certain rate to purchase the procts of the alliance. For procts outside the alliance, virtual currency has no value significance; Similarly, when virtual currency is only authorized to buy different procts in different sales cycles, the use of virtual currency has limited application in time and scope, unlike sovereign currency, which can be completely freely exchanged
8. Separability: virtual currency has no physical form and is a digital storage information. Unlike traditional paper currency, it needs to consider the balance relationship between the circulation of main currency and subsidiary currency and the proportion of various currency values. It can be split infinitely. For example, although the total number of dark coins is only 2300, each bitcoin can be split into eight directions of ten< Although virtual currency exists in the virtual world, the process of new technological revolution has closely linked the virtual world with reality, and the virtual world has become an important part of people's spiritual life. It can promote the development of real economy, for example, a large number of entertainment application projects provide people with rich spiritual wealth and real wealth, and more and more people invest in virtual currency, which represents a trend, and the more successful ones are bitcoin, Leyte coin and the new domestic King coin; On the contrary, money laundering, gambling and network theft in the virtual world will have a negative effect on the real economy.

2. 1、 The definition of virtual currency
virtual currency originally refers to non real currency.
in the case that virtual currency is connected with reality, virtual currency has its real value. Well known virtual currencies such as Tencent's q-coin, q-point, Shanda's roll, Sina's u-coin meter ticket (used in igome game), chivalrous Yuanbao (used in chivalrous road game), and so on, In the era of stand-alone games, the protagonists accumulate money by knocking down the enemy and winning money in gambling houses to buy Herbs and equipment, At that time, there was no "market" between players. Since the Internet established the portal and community and realized the game networking, there has been a "financial market" for virtual currency, and players can trade game currency.
the second type is the special currency issued by portal websites or instant messaging service providers, Tencent's q-coin is the most widely used to purchase services on this website. It can be used to purchase membership, QQ show and other value-added services.
Third, the difference between real currency and virtual currency

the first feature: different value formation mechanisms.
general currency and virtual currency have different value bases, the former represents utility, The latter represents value.
as a general equivalent, the "price" of currency is called value in language, but actually refers to utility. Virtual currency does not represent the "effect" of general "price", but the value itself.
virtual currency is not a general equivalent, but a manifestation of value relativity, or a symbol of expression; It can also be said that virtual currency is a personalized currency.
the second feature is that the monetary decision mechanism is different.
general currency is decided by the central bank, while virtual currency is decided by indivials.
reflected in the monetary decision mechanism, real currency is decided by the central bank; The virtual money market (such as stock market and game money market) is determined by forces outside the central bank, The economy formed by stock market and derivative financial market is called fictitious economy. The essence of fictitious economy is information economy with indivial as the center.
the third characteristic is that the value exchange mechanism is different.
the value conversion of general currency is completed in the money market; The value exchange between general currency and virtual currency is completed through the overall exchange of the two markets. Under special conditions, there is an immature exchange relationship between indivial markets. Therefore, it can be said that general currency and virtual currency are in different markets.
some people worry that game virtual currency may cause inflation, Just as the imbalance of supply and demand in the commodity market can not directly lead to the imbalance of supply and demand in the money market, it must be through the issuance of additional money in the overall market to lead to inflation; At present, the stock market is a unified market, but the game market is not.
for example, the ratio of a certain game virtual currency to RMB may initially be 800000 to 1, Then it may change to 8 million to 1. Maybe the virtual currency of a castle today will be enough to buy a Tomahawk tomorrow; If the virtual currency forms a unified market, it may indeed exert pressure on the money market. The problem is that there is no such unified market now. The issuers of game currency are independent of each other and do not have the status of financial subject, let alone the exchange with currency at the level of financial market. What's more, whether it is base currency or value-added currency, The currency volume (m) and the currency price level (V, i.e. the velocity of circulation) have not changed, so it can not be considered that there will be monetary inflation or deflation.
for the current game currency depreciation, it is better to explain that the service conditions of a game as a value-added service have changed, As the demand for virtual currency increases, the price of services involved and the price level of virtual currency decrease. Due to the change of supply and demand conditions of such services, the price of services decreases. This is a phenomenon that can be explained by a real commodity market

3. In the sense of economic practice, money has only advantages but no disadvantages. Whether it's paper money, gold, electronic accounting money, or virtual money in the game, without the tool of money, human society can't exchange goods and services fairly and effectively.

4. 1. A country's gold reserves are directly related to its currency appreciation and devaluation.
--- generally speaking, when a country's currency appreciation, its gold reserves are larger, but the devaluation does not necessarily mean that its gold reserves are reced; Examples can be found in China and Japan. We should know that the yen is often devalued for the sake of trade; I don't care about the example of China. On the contrary, if you want to say that if you have more gold reserves, the currency will appreciate, that is unreasonable. Exchange rate is the comparison of purchasing power, and its essence is the comparison of economic strength

2. If someone deposits a large amount of cash in the people's Bank of China and transfers it to the United States, if he wants to withdraw cash in the United States, does the Bank of America need to ask for the same amount of gold in the Bank of China. Not money

- - it's not entirely true that gold is coming and going, which wastes transfer costs and custody costs. In today's advanced communication and technology, it's inconceivable to use gold for delivery. In addition to gold, there are many other international reserves, such as payment units. Generally speaking, in the banking system, gold is only used for clearing and position leveling< The economic strength of a country is directly related to its gold reserves

- - generally speaking, with strong economic strength and developed instry, the ability to buy gold will be greatly enhanced, and processing needs a lot of gold, so those with strong economic strength naturally need a lot of gold reserves, one for finance, the other for instry, and the third for luxury goods< Only the banks that can store gold in the world have the right to issue currency

- in theory, it can be said that, but in fact, it is too wide. Money is compulsory and legal by the state, and can not be issued by any bank with gold. In fact, there is no gold. As long as we have the power to issue currency, there will be a lot of gold right away. China 49 years ago proved that. Of course, issuing currency by banks without gold reserves was a disaster for users, as was the case in the Yuan Dynasty, the Ming Dynasty and the Republic of China< The military expenditure needed by the United States to fight against Iraq has reced the gold reserves of the US Treasury, and its currency has depreciated e to the decrease of the gold reserves.

- this is too far fetched. The US military expenditure is hundreds of billions every year. The war in Iraq is not the main reason. The sluggish economic development is the result of trade measures and monetary policy, Although the status of the US dollar can no longer be described by us gold, it does not need gold to support it. Considering the trade deficit and capital surplus of the United States, it is making great use of the gold reserves of other countries. From a certain point of view, many of the gold reserves of China and Japan are actually serving the United States.

5.

According to different user needs and scenario applications, blockchains are divided into three categories: public blockchain, private blockchain and consortium blockchain

the degree of decentralization of public chain. This kind of public blockchain, represented by bitcoin and Ethereum, is not controlled by a third party. All people in the world can read the data records on the chain, participate in transactions and compete for the bookkeeping rights of new blocks

program developers have no right to interfere with users, and all participants (i.e. nodes) can freely join and exit the network, and carry out relevant operations according to their wishes

On the contrary, the write permission of the network is fully controlled by an organization or institution, and the data read permission is regulated by the organization, either open to the outside world or with a certain degree of access restrictions

In short, it can be understood as a weakly centralized or multi centralized system. Because the participating nodes are strictly limited and few; Compared with public chain, private chain has shorter time to reach consensus, faster transaction speed, higher efficiency and lower cost

and alliance chain is a blockchain between public chain and private chain, which can realize "partial decentralization"

Each node in the

chain usually has a corresponding entity or organization; Participants join the network through authorization and form a stakeholder alliance to jointly maintain the operation of the blockchain

to some extent, alliance chain also belongs to the category of private chain, but the degree of privatization is different. Therefore, it also has the characteristics of low cost and high efficiency, and is suitable for B2B transactions such as transactions and settlement between different entities

Generally speaking, the public chain has the lowest entry threshold, while the private chain and alliance chain are limited in the degree of openness

6. You can change it with paper money. Buy a pile of gold bars, home put more pie. I'm afraid it's not easy to spend!

7. The original essence of money is the exchange of labor force
gold is relatively scarce, and the labor cost required for proction is stable and will not change easily. Before the existence of paper money, gold was easy to carry, which can be called "labor force convenient to carry and used for exchange"

the commodity separated from the commodity and fixed as the general equivalent is money; Money is the proct of the development of commodity exchange to a certain stage. The essence of money is the general equivalent, which has the functions of value scale, circulation means, payment means, storage means and world money. In history, different regions used to exchange different commodities as currency, and then the monetary commodities graally transited to gold, silver and other precious metals. With the development of commodity proction and the expansion of exchange, the supply of commodity money (gold and silver) is increasingly unable to meet the growing demand for money, and there are graally substitute money and credit money to make up for the lack of circulation means. In the 20th century, gold and silver graally withdrew from the currency stage, and dishonoured banknotes and bank checks became the main means of circulation and payment proceres in various countries.

8. Question 1: since the 1970s, the issue of paper money in all countries in the world is no longer directly linked to gold. The issue of paper money no longer directly depends on the amount of metal money needed in circulation, but is restricted by the supply of goods and the circulation speed of paper money. When the circulation of banknotes is too large, the devaluation of banknotes will inevitably lead to price rise, that is, inflation. Since the law of paper money circulation is derived from the law of metal money circulation, we can write Marx's law of money circulation as the law of paper money circulation:

m = PQ / V

where m is the amount of paper money circulation; P is the average price of goods; Q is the quantity of goods; V is the velocity of paper currency. This shows that in the case of paper currency circulation, commodity prices rise and fall with the increase or decrease of the number of paper currency. The value of paper money is inversely proportional to its circulation, and the commodity price is directly proportional to its circulation.

9. Theoretically, there are gold standard and silver standard. Under the gold standard or silver standard, paper money can be freely exchanged for equivalent gold or silver. At this time, the currency is gold or silver

however, most of the currencies in the world are credit currencies. It is called credit standard. Take the RMB that we use as an example, one yuan RMB is not linked to precious metals, but is issued by national credit
as a currency symbol, paper money is used for payment, but it can not be directly converted into precious metals< Of course, RMB can still be used to buy gold or silver, but there is no connection between RMB and gold or silver. The price of gold and silver is determined by the market

10. Internationally recognized currency: US dollar, euro, pound sterling and Japanese yen. Commodities include gold, silver and oil