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How on earth are we going to make money? Try a decentralized open source monetary policy



From Bitcoin, Ethereum to Maker, Fei, understand the evolution of centralized banks to decentralized banks. How on earth do we make money? This is an interesting question that took me a while to think about. How is a new currency created? Who decides how many dollars, euros, yen and pounds there should be in the market? When these currencies are created, who puts them out? Why put currency? To be honest, the "rabbit hole" of monetary policy is really deep. Of course, I am also a novice in this field, if I have made any mistakes in this article, please correct me. The history of money is great history, and by far my favorite book on the history of money is The Ascent of Money by Niall Ferguson, which details The staged transformation of currency has developed from the notch on the rock to the blockchain transaction that can sweep the entire earth in a few seconds. And I want to focus on some changes that have occurred in recent years: from centralized banks to decentralized banks. If you want to understand some basic conceptual knowledge first, you can check it out at this link. Voice | CSW: Bitcoin allows us to create a secure network: On the afternoon of December 7th, at the BSV China Conference, BSV founder Craig Wright said in a speech that billions of users have experienced data leakage. It is effective, the Internet is automatically upgraded and updated, there is no need to sell information to big companies such as Google, but to do it ourselves, not a few large companies, we do it ourselves, no one tracks these, so as to protect our data. Bitcoin allows us to create secure networks where we control our own information and we access our devices in a secure manner. We want information to be privately owned, people to control their data, people to have choices, and we want to build market-based systems. The original intention of Bitcoin was not digital gold, but decentralization, which refers to the electronicization of paper records. We turn these into electronic, tokenized, and people can trade online. [2019/12/7] Now each of us is living in a globalized society. In the United States, people always spend a lot of time thinking about who should lead the country, but they spend very little time thinking about who should be in charge. Lead our money. Central banks around the world are building and maintaining the monetary system in a variety of different ways, and it appears that the people who run these central banks are either appointed by the top of the government or elected internally, but for the general public, they are basically It is difficult to understand the selection process of central bank management. If we put the most powerful central bankers in the world together in a room, it is estimated that there will be less than 1,000 people in this room at most. Voice | Bitcoin believers: Now is a good time to buy BTC, we will no longer see BTC of 6,000, 8,000 or even less than 10,000 US dollars: Lucien Lecarme, a Bitcoin believer and Medium columnist, wrote yesterday, Recently, the price of Bitcoin (BTC) broke through the psychological barrier of $10,000 and reached $11,000 on June 22. At present, the price of BTC has always remained above 10,000 US dollars. The price movement of BTC reflects an important trend: BTC is being accepted by the global market. What's Driving the Current BTC Price Rally? 99% of people in the cryptocurrency trading field believe that the bear market of 2018 is over. However, he believes that the rise in BTC prices this time is different from the bull market in late 2017. Now is a good time to buy BTC, we will no longer see BTC of 6,000, 8,000 or even less than 10,000 US dollars. [2019/6/26] Think about it: Fewer than 1,000 people control the pulse of the world's currencies - is it a bit surprising? Personally, this thing is really crazy! I love the photo below, where former IMF chief and current ECB president Christine Lagarde and her colleagues gather to look around in such a "tall" environment, the only What is embarrassing is that everyone sitting at the table has gray temples. Voice | American Economist: We are at a stage where cryptocurrencies must finally prove their social value: Tyler Cowen, a columnist for Bloomberg and an American economist, recently published an article saying: Today, cryptocurrencies are far from popular. Many cryptocurrencies have lost 80% or more in value from their January highs, and some have even returned to zero. But, maybe this is a good time for cryptocurrencies to move forward. One of the problems with cryptocurrencies is that the crap idea of raising money through ICOs is all over the place. Everyone wants a piece of the action, and the market is full of white papers, startups, scams, and of course, some really innovative ideas. We are at a stage where cryptocurrency must finally prove its social value, and if it is just "the new gold" and tries to exist only as an investment asset, it will risk losing its luster and fading away. Various experiments and theories have proved that Bitcoin and other encrypted assets have not really changed the world, and it is time to vigorously promote it to solve specific problems to make up for the current shortcomings. [2018/11/7] Who do you think these old people side with when they decide to issue more euros? Will they represent young people? Will it represent minorities? Or will it represent the poor? It is even unknown whether these questions have ever been thought of in these people's minds. Frankly speaking, these old scholars should be responsible for the well-being of future generations, but maybe I am wrong. Have you heard of Agustín Carstens? He's the managing director of the Bank for International Settlements (BIS), and the avatar of all things central banking that I despise. If you watch this video, you can see exactly what this guy is doing: he clearly shows that the central bank should track all the spending of users in real time. Be aware that in some countries today, the government needs to obtain a warrant to access user payment data. What are they most likely to do if Agustín Carstens - the "big boss" - gets his way? Simple: create a central bank digital currency (CBDC). Peking University Professor Cai Jian: The blockchain has awakened our computer to change: Peking University professor Cai Jian participated in the Encryption Economics Seminar of Tsinghua University on the 11th. He said at the meeting that the blockchain is not a pure financial technology, it is a wake-up call We, computers need to change, and the blockchain design is decentralized, but this concept is definitely not decentralized on social networks, and the concept has become the center of hot spots in society. Cai Jian also mentioned that the government has a way to restore Bitcoin to its original form overnight. [2018/3/12] Agustín Carstens does not want to conceal the true intention of the Bank for International Settlements, he even hopes to make comprehensive financial supervision a new normal. It really turns me off. There is no doubt that the Federal Reserve is the most successful central bank on the planet. They turned the US dollar from a single national currency into a global settlement currency. Just for this, the Federal Reserve has completed a very remarkable achievement. The image above is from The power the US has on the global stage is staggering The world must bow to its knees when the Fed creates more dollars, There is a hilarious meme on twitter about the Fed's recent performance that can be viewed here. But, do you know who is running the Fed? I didn't know until recently that the Fed has only 7 people in control. Will Murphy: Ten years later, we no longer have a blockchain: Will Murphy, vice president of, expressed his opinion that in ten years, blockchain technology will develop to the point where it is no longer possible to call it a "blockchain" suitable level. He believes that blocks will no longer be needed in the future, and will be replaced by a system that connects transactions together and can confirm previous transactions, which will be faster; and the chain is no longer a single line that connects blocks together. Rather, it is in the shape of a network or graph, and there may be a non-linear set of branches connected to different destinations, that is, many parallel transactions will occur, just like the Tangle in IOTA. "So far, I think the closest I have come to portraying DAG [2/18/2018] as a global settlement currency, do you think it is reasonable for the fate of the US dollar to be determined by only a few people? To me, the center The degree of globalization is too high! Bitcoin has completely changed the game. With innovative protocols and a very simple monetary policy, this new financial system has emerged: If we issue all 21 million bitcoins in 144 years, see what will happen. What happens. If you think of Bitcoin as a meme, then it can be said that the concept is amazing! Everyone is attracted to "21 million" Bitcoins. The concept of Bitcoin is very simple, but at the same time, it is also a bit Too simple. If 100 years from now, we can fit nicely into "21 million" bitcoins, then all the monetary problems in the world will be solved. However, the ideal is full and the reality is very skinny. I think the real effective currency solution is much more complicated. Do you think that the first-ever monetary policy put into the blockchain will be the best solution humans can think of? I do not think so. So far, Ethereum’s monetary policy remains up in the air. Unlike Bitcoin, the supply of Bitcoin is fixed from the beginning, while Ethereum does not have a fixed currency supply, but will continue to change with the passage of time or the development of the protocol, but the monetary policy of Ethereum is relatively mature and is continuously enhanced. I think Justin Drake's interview on Ethereum is one of the best ever, you can check it out at this link. Justin Drake put forward a novel point of view, he felt that Bitcoin is expected to remain inflationary for decades, while Ethereum is actually likely to be deflationary for a decade or more, if it happens In this case, the circulating supply of ETH will gradually decrease. For a store of value, do you think it is better to implement an expansionary policy? Or is it better to implement a contractionary policy? Personally, I like digital and deflationary stores of value. One of the most successful projects in the field of decentralized finance (DeFi) is Maker DAO, which takes collateral such as Ether and mints a stablecoin called "Dai". There have been two major revisions to the system, and there is currently more than $7 billion in collateral locked up. The above image is from What I found amazing about Maker is that anyone can contribute to the system, or participate in the governance process around its monetary policy, and many people gather every week to discuss interest rates and financial system risks. I spent a lot of time researching the Maker protocol interface and found that the people who built the system spent a lot of time and effort making sure it was safe for everyone, while all the work was open source. Do you think a more decentralized monetary policy is worth trying? Personally, I think decentralized monetary policy is one of the most exciting ideas of all time. Over the past four months, I have been helping the team at Fei Labs prepare for the new protocol launch, Genesis Group just went live, and now anyone can participate. The Fei team is adopting a new approach to creating decentralized stablecoins, aiming to further improve the scalability and capital efficiency of stablecoins in the DeFi field, and is currently exploring many highly experimental new mechanisms. In just a few months, many people are willing to try this new encryption economic mechanism, isn't it cool? I would love to be part of it. In fact, I prefer to think of Ethereum as an open source and open economic engineering system, on which everyone can publish anything and interact with any type of code - "Ethereum is a protocol protocol" . In the next ten years, we will see various open source monetary policies emerge. Today, most stablecoins are pegged to the U.S. dollar, or effectively create a synthetic asset. In the near future, we will see more interesting forms of stablecoins, such as RAI, FLOAT and OHM, which are explained in detail in this excellent article by Messari columnist Ryan Watkins.


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