The limitation of virtual currency

4. Bitcoin is unique in that only 21 million bitcoins will be generated. But this is not a limitation at all, because bitcoin can be divided into smaller sub units in the transaction, such as bit - one bitcoin equals 1000000 bit. A bitcoin can be split to 8 decimal places (0.000 000 01). If the average scale of a single transaction is reced to a certain extent in the future, it can even be split into smaller units.

5.

Limitations of monetary policy:

1. Monetary policy has external time lag: that is to say, it takes a period of time for the policy to proce effect (the length of time is a controversial issue), so it may miss the opportunity and lead to the opposite effect

The implementation of monetary policy depends on the openness of the market and the flow of international capital. In November 2010, the quantitative easing monetary policy of the United States led to a large amount of capital flowing into emerging economies, weakening its role

3. Monetary policy should also consider the velocity of money circulation. The stronger the velocity of money circulation, the more money demand, and the weaker the velocity of money circulation, the smaller the money demand. This may lead to the failure of money supply to keep up with the demand

Monetary policy is effective in dealing with demand driven inflation, but has little effect on cost driven inflation. For the economic contraction, the effect is not obvious

extended data:

monetary policy, that is, financial policy, refers to the general term of various guidelines, policies and measures adopted by the people's Bank of China to control and regulate money supply and credit in order to achieve its specific economic goals. The essence of monetary policy is that the country adopts different policy trends of "tight", "loose" or "moderate" according to the economic development in different periods

various policies and measures to use various tools to adjust money supply to adjust market interest rate, to influence private capital investment through the change of market interest rate, and to influence macroeconomic operation by affecting aggregate demand. The three major tools of monetary policy to adjust aggregate demand are legal reserve ratio, open market business and discount policy

The monetary policy target is not an isolated target, but an organic whole composed of three progressive levels, namely, operational target, intermediate target and final target. Price stability is the primary goal of the central bank's monetary policy, and the essence of price stability is the stability of currency value

reference: network monetary policy

6. As far as the balance of payments monetary analysis itself is concerned, its limitations are mainly manifested in the following four aspects
(1) we only pay attention to the final result of balance of Payments - the change of official reserve account, but ignore the balance and interaction of current account and capital account< (2) currency is not the only factor of balance of payments imbalance and its adjustment 3) Assuming that money demand is stable, money supply is regarded as the only force determining the balance of payments
(4) the conclusion of long-term balance of payments analysis largely depends on the law of one price or the hypothesis of purchasing power parity.

7. That is, money can only limit the amount of money in circulation, but in inflation and deflation, there must be a subsidy policy to solve the actual problem. For example,

when inflation occurs, all kinds of prices rise, but the government uses monetary tightening (bank interest rate increase). However, monetary policy can only restrict the entry of foreign hot money. Because inflation involves many factors, such as the rise of labor costs, monetary policy can not solve this problem. At this time, we need to use instrial adjustment to change the transformation in order to increase corporate profits

for example, in deflation, for example, in the United States, the government used monetary easing policy to print a lot of money and devalue the currency to benefit exports. However, the main problem lies in the problem of bank lending in the United States and the economic crisis caused by excessive use of loans. Only by adjusting the financial system can the next financial storm be stopped.

8. 1. From the perspective of money market equilibrium, if the increase or decrease of money supply affects the interest rate, it must be based on the premise that the speed of money circulation remains unchanged. If this premise does not exist, the impact of money supply changes on the economy will be discounted. In the period of economic prosperity, the central bank needs to tighten the money supply or slow down the growth rate of money supply in order to curb inflation. However, at that time, the public generally will increase their expenditure, and when the price rises rapidly, the public is unwilling to hold money in their hands, but hopes to spend it as soon as possible, so that the speed of money circulation will be accelerated, This is no different from increasing the money supply in the field of circulation. At this time, even if the central bank reces the money supply, it will not be able to rece the inflation rate. On the contrary, when the speed of money circulation decreases in the period of economic recession, the impact of the increase of money supply by the central bank on the economy may be offset by the decrease of the speed of money circulation. If the increase of money supply is equal to the increase of money demand, the LM Curve will not move, so the interest rate and income will not change. 2. In the period of inflation, the effect of tightening monetary policy may be obvious, but in the period of economic recession, the effect of expanding monetary policy is not obvious. At that time, manufacturers were generally pessimistic about the economic prospects. Even if the central bank loosened its monetary policy and lowered interest rates, investors would not increase loans to engage in investment activities, and banks would not lend easily for the sake of safety. Especially because of the liquidity trap, no matter how loose the money is, the interest rate will not decrease. In this way, as an anti recession policy, the effect of monetary policy is quite weak. Even from the perspective of anti inflation, the role of monetary policy is mainly reflected in the fight against demand driven inflation, while the effect of monetary policy on cost driven inflation is very small. If the rise of prices is caused by the increase of wages exceeding the increase of labor proctivity, or by the monopoly manufacturers seeking high profits, it will be more difficult for the central bank to control the inflation by controlling the money supply. 3. The external time lag of monetary policy also affects the effect of monetary policy. In order to change the money supply, the central bank should affect the interest rate, then the investment, and then the employment and the national income. Therefore, it will take a long time for the monetary policy to play its full role. In particular, after the market interest rate changes, the investment scale will not change correspondingly soon. After the interest rate falls, it needs a process for manufacturers to expand the scale of proction. After the interest rate rises, it is not easy for manufacturers to rece the scale of proction. In a word, even if it doesn't take a long time to adopt the monetary policy at the beginning, it will take quite a long time from the implementation to the effect. In this process, the economic situation may change contrary to people's original expectation. For example, the central bank expands the money supply in the economic recession, but the economy has turned into prosperity before the policy effect is fully exerted, Since prices have begun to rise rapidly, the original expansionary monetary policy is not an anti recession policy, but has played a role in fueling inflation. The problems of monetary policy in practice are not only these, but only from these aspects, monetary policy as a means to stabilize economic fluctuations, the role is limited.

9. After the newcomers join 2 million shares, the total shares now become 5 million shares, and your original 20% shares now become 12% shares.