MPC virtual currency

1. the concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's idea, open source software was designed and released, and P2P network was built on it. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system

   Unlike most currencies, bitcoin does not rely on specific currency institutions to issue. It is generated by a large number of calculations based on specific algorithms. 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

As of November 9, 2019, one thousand pounds is about 8931.7 yuan

after the euro was adopted, the pound has become the oldest currency still in use. It is the third largest foreign exchange reserve in the world, behind the US dollar and the euro. The pound is the fourth largest currency for foreign exchange trading, behind the US dollar, the euro, and the Japanese yen. Although there is no fixed exchange rate between the pound and the euro, there is often a long-term synchronous trend between the pound and the euro

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the most fundamental influencing factors of sterling exchange rate are the policies formulated by the Bank of England and the monetary policy committee. In addition, the influencing factors of sterling exchange rate are sterling interest rate and financial factors, including British government bonds, 3-month Euro Sterling deposit futures, 3-month Euro Sterling deposit futures, 3-month Euro Sterling deposit futures, etc Financial times 100 index and cross exchange rate

1. The Bank of England (BOE)

since 1997, the Bank of England has obtained the function of independently formulating monetary policy, but it still has to meet the inflation standard set by the Ministry of Finance

2. The monetary policy committee (MPC)

MPC is mainly responsible for setting the interest rate level

4. Financial factors

the financial factors affecting the exchange rate of the pound include British government bonds (gilt edged bonds), three-month Euro pound deposit Futures (short-term pound), three-month Euro pound deposits, financial times 100 index and cross exchange rate. The spread between the yield of 10-year gilt edged bonds and that of other national bonds or US Treasury bonds in the same period will also affect the exchange rate of the pound and other national currencies

the price of Euro pound deposit futures contract in three months reflects the market's expectation of Euro pound deposit interest rate in three months. The difference of futures contract price with other countries in the same period can also cause the change of pound exchange rate

3-month Euro pound deposits the pound deposits deposited in non UK banks are called Euro pound deposits. The difference between its interest rate and other countries' European deposit interest rate in the same period is also one of the factors affecting the exchange rate

the financial times 100 index is the main stock index in the UK. Although it has little impact on the pound, it has a strong linkage with the Dow Jones index in the US

5. Economic data

the British economic data affecting the pound include: initial unemployment, initial unemployment rate, average income, retail price index excluding mortgage loans, retail sales, instrial proction, GDP growth, purchasing manager index, manufacturing and service survey, money supply (M4), income and housing price balance

reference source: Internet

The currency of England is called pound sterling

the British pound is the standard unit of currency, issued by the Bank of England, which was founded in 1694. The second unit was shillings and pence. One pound equals 20 shillings and one shilling equals 12 pence

as of 2017, the Bank of England banknotes in circulation can be divided into four types: 5, 10, 20 and 50. In addition, several banks in Scotland and Northern Ireland issue pounds at the same time, but their designs and denominations are different. Internationally, the settlement of pound sterling generally only recognizes the Bank of England version. In China, foreign currency exchange banks do not exchange and accept pounds issued by banks other than the Bank of England

the new version of pound sterling, which was issued in 2008, includes 1p, 2p, 5p, 10p, 20p and 50p with a part of the British national emblem and shield. The coin can be put together to form a complete pattern, except the one with a complete shield. On the other side of each coin is the traditional head of the queen

from 2017, a new version of 12 sided 1 pound coin will be issued. The British Daily Mail website reported on October 8, 2017 that the old round pound 1 will no longer be used as legal tender from October 15

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the relationship between the British pound and the European Economic and Monetary Union: the British pound is often under pressure e to Prime Minister Tony Blair's remarks about possible accession to the European single currency, the euro. If the UK wants to join the euro zone, its interest rate level must be reced to that of the euro. If the public votes to join the euro area, the pound will have to depreciate against the euro for the sake of its instrial trade. As a result, any talk of Britain's possible entry into the euro will depress the pound

because of the national symbolism of the pound, the idea of replacing the pound with euro has been disputed by some British public sectors. Scotland's conservative party claims that the adoption of the euro means the end of local characteristic banknotes, because the European Central Bank does not allow member states or the next level of government to design banknotes. The SNP also disagreed with the adoption of a single European currency, because it believed that an independent Scotland should have its own unique currency, and its party policy included the entry into the single currency system

against other currencies, the pound can be traded in foreign exchange markets all over the world, and its value fluctuates relative to other currencies. Historically, the pound has been the most valuable basic foreign exchange

1 Income level is one of the main factors that determine the money demand. This factor can be divided into income level and income interval. In general, the demand for money is proportional to the income level. When the income of residents, enterprises and other economic entities increases, their demand for money will also increase; As their income decreases, so does their demand for money. If the time interval for people to obtain income is prolonged, the money demand of the whole society will increase; On the contrary, if the time interval for people to obtain income is shortened, the money demand of the whole society will be reced< (2) propensity to consume
propensity to consume refers to the proportion of consumption expenditure in income, which can be divided into average propensity to comsum (APC) and marginal propensity to consume (MPC). Average propensity to consume refers to the proportion of total consumption in total income, while marginal propensity to consume refers to the proportion of incremental consumption in incremental income. Suppose that people's income and expenditure are savings except for consumption, then the corresponding consumption tendency is savings tendency. In general, the direction of consumption tendency is consistent with the change of money demand, that is, the consumption tendency is large and the money demand is large; And vice versa< (3) interest rate level
in the market economy, interest rate is an important lever to regulate economic activities. Under normal circumstances, the interest rate rises and the money demand decreases; The interest rate decreases while the money demand increases, and there is a negative correlation between the interest rate and the money demand. The reasons for the negative correlation between interest rate and money demand are as follows: first, the increase of interest rate in money market means that the opportunity cost of holding money increases (the interest income given up because of holding money), so the money demand tends to decrease; On the contrary, the market interest rate decreases, the opportunity cost of holding money decreases, and the money demand tends to increase. Second, the market interest rate changes inversely with the price of the securities, the interest rate rises and the price of the securities falls; When the interest rate falls, the price of securities rises. Thus, the public's desire to hold money is inversely proportional to the interest rate and directly proportional to the price of securities. The public's desire to hold money is an important factor determining the demand for money< (4) the degree of credit development
If a society has developed credit and sound credit system, and people can easily obtain cash or loans when they need money, then the amount of money necessary for the whole society is less than that for a society with underdeveloped credit and imperfect credit system< (5) the influence of the speed of money circulation, the supply of social goods and the price level on money demand can be explained by the law of money circulation. If M is the money demand, P is the price level, q is the social commodity supply, and V is the speed of money circulation, then according to the law of money circulation, there is the following formula: M = PQ / v. It can be seen that the price level and the supply of social goods are directly proportional to the money demand; The speed of money circulation is inversely proportional to money demand< (6) the expectation and preference of the public
the above five points are the objective factors that determine the money demand. Money demand is affected by people's subjective will and psychological activities to a certain extent. Generally speaking, the relationship between people's psychological activities and money demand is as follows:
1 when the interest rate rises greatly, people often expect that the interest rate will fall and the price of securities will rise, so people will rece their holding of cash and increase their holding of securities in order to obtain capital premium income in the future; And vice versa
2 if the price level is expected to rise, the money demand will decrease; If the price level is expected to decline, the money demand will increase
3 if people prefer money, the money demand will increase; if people prefer other financial assets, the money demand will decrease