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Currency Series Talk: How to Understand the Currency Form and Its New Changes



The digital economy has brought a series of new demands for currency, and these new demands have gathered and spread out, and a new form of currency has emerged. So, how to understand the currency form and its new changes? The "new" and "old" currency forms are relative. The "return" and "resurrection" of the old currency forms will also occur in the same region and in different periods. Historically, it is normal for the monetary form to be adjusted and changed adaptively according to the needs of the actual economic situation. The overall historical trend of social economy is constantly moving forward, and the form of currency has changed from physical currency, to metal coins, to banknotes, and then to bank bookkeeping currency, so it changes and develops in stages. From a global perspective, physical currency still exists as a special case in certain geographical areas or in specific scenarios; metal coins are basically replaced by coins, and their circulation is decreasing day by day. Many small unit coins are no longer issued, and even withdrawn in fact. Circulation; banknotes are still widely used, but bank electronic currency has actually been able to replace banknotes on a larger scale. It is not difficult to find that the real currency system often coexists in multiple forms, and does not exist and circulate in an absolutely single form. It has a history of at least two thousand years from metal coins to bank coins, and a history of more than a thousand years from banknotes to bank notes. Even if it is said that electronic accounting or payment methods between banks have existed for more than a hundred years, it has begun to spread to individuals on a large scale. It's been decades. It can be said that the emergence of a new currency form must first coexist harmoniously with the old currency form and develop adaptively. There are conflicts and compromises among various currency forms. Advance and retreat, a series of structural changes appear instead of each other. Therefore, the view that the new form of money completely replaces the old form of money is neither in line with the historical facts of money nor realistically possible. The digital currency system LODE has reached a strategic cooperation with the German investment company CM Equity: The LODE project, a precious metal currency system based on digital blockchain, announced the establishment of a cooperative relationship with the German investment company CM Equity AG to further expand the scope of LODE's services in Europe. The two parties signed a bundled agency agreement today to determine the strategic partnership. CM Equity, an investment company licensed by the German Financial Supervisory Authority (BaFin), enables European LODE users to use LODE's native assets LODE tokens, AUX Coin (digital gold) and AGX Coin (digital silver) for transactions, and through LODEPay non-custodial mobile Wallet technology to securely send, spend and/or receive digital assets to anyone in the world anytime, anywhere. (DGAP.DE) [2020/10/9] It must be clear that the so-called currency form is a factual state of currency, not a possibility in the future, that is, the currency form has already happened and is real, not a hypothesis Yes, false. Therefore, the design, technology, or conceptual interpretation of the future form of currency are all currency assumptions or fantasies, not actual currency forms. It is just an unreasonable conjecture to regard certain currency concepts in the mind as the real currency forms that can be circulated, and then declare the occurrence of new currency forms. In the history of currency, there are many cases where currency hypotheses are introduced into the actual currency system, and then currency crises or even disasters are caused. U.S. Liberal Party Presidential Candidate Proposes a Decentralized Currency System: Adam Kokesh (the first Liberal Party candidate in the 2020 U.S. presidential election) has appointed Alastair Caithness as his chief blockchain policy advisor, aiming to develop a currency called AmeriCoin Sovereign cryptocurrency. Caithness will focus on developing a cryptocurrency tied to all federal government assets, including the U.S. government's vast land, energy, gold, timber and mineral resources. Adam Kokesh's goal is to build a new decentralized currency system centered on AmeriCoin. Through AmeriCoin, citizens will receive a universal basic income and compensation for existing government policies such as taxes. Caithness believes that AmeriCoin will change the economic landscape of the country and ensure financial freedom for all citizens. (cointelegraph) [2020/3/12] Currency form is not a physical understanding of currency form. People often consciously or unconsciously associate it directly with the currency carrier in circulation, or identify it with the physical properties of the currency. This is a Big misunderstanding. For example, electronic currency is not the so-called electronic form of currency, but a currency accounting instruction issued by the electronic form. When individuals swipe their cards for consumption, they only issue payment and accounting instructions through electronic means, whether to pay, how to keep accounts, etc., are completely handed over to the background of the banking system for processing. Strictly speaking, there are only electronic currency orders, but there is no so-called "electronic currency". Currencies in different physical forms, such as metal coins, banknotes, and electronic money, each have their own circulation characteristics. The general process of currency history is that the currency carrier gradually breaks away from the constraints of physical forms. The denomination of banknotes is not limited by physical properties at all, especially bank bills, which shows that currency has essentially escaped the constraints of the physical form of currency at the stage of banknotes. Therefore, it has become a "past tense" to determine the form of money through monetary materials. Voice | Gemini Co-Founder: Cryptocurrencies Will Redesign Financial and Monetary Systems: According to FXStreet, Gemini co-founder Tyler Winklevoss recently talked about his views on the new decade of cryptocurrencies. According to Winklevoss, the decentralized nature of cryptocurrencies will be the driving force for the next decade. He believes that in addition to redesigning the Internet, cryptocurrencies will also redesign financial and monetary systems to protect the dignity and rights of users. Furthermore, Winklevoss also believes that encryption cannot fail because the invention is too fair to be ignored and the appeal is too strong to deny. [2020/1/4] As Keynes said, "Modern currency is account currency." The physical properties of account currency or bookkeeping currency are not important, or in other words, physical properties do not matter at all. The form of currency is determined by the bookkeeping rules of the account. All kinds of bank notes are bookkeeping instructions or bookkeeping currency, and electronic money is bookkeeping instructions. There is almost no difference between paper money and metal coins in circulation. The biggest difference from metal coins is that paper money must flow back to banking institutions in stages , but not coins or coins. In other words, only coins can be completely separated from the bank bookkeeping system, banknotes are not completely separated from the bank bookkeeping system, and bank bills and electronic money cannot be completely separated from the bank bookkeeping system. From this point of view, the actual currency forms in the social and economic system can be divided into three categories: coins that are completely separated from the bank account and bookkeeping system; banknotes that are not completely separated from the bank account bookkeeping system; bank notes and electronic cards that are completely bank account bookkeeping. account currency. Looking at the trend, the currency form under the bank account bookkeeping system is dominant. Voice | SEC Chairman: The introduction of better regulations will lead to a sound digital currency system: According to bitcoinexchangeguide, the US Securities and Exchange Commission recently launched "Finhub" to promote cooperation with encrypted blockchain innovators, developers and entrepreneurs . SEC Chairman Jay Clayton said that he is aware that alternative assets are currently experiencing rapid growth. However, due to the many loopholes in today's digital currency market, he hopes investors will abide by the required laws to prevent any unnecessary economic risks. From a purely regulatory perspective, the introduction of better rules and regulations will lead to a system that will help clients better monitor their transactions, holdings and liabilities (including credit risk). Simply put, technological advances, and new and innovative funding techniques, should be pursued, but not at the expense of well-founded and proven principles of investor and market protection. [2018/10/30] Currency form is not value. Long before the denomination of banknotes broke away from physical constraints, metal coins were also trying to get rid of physical constraints through the marking of denominations. In the history of Chinese currency, the so-called " big money" or "little money". The account currency completely gets rid of the "physical constraints", and at the same time gets rid of the "value constraints". The value stability of bank currency is closely related to its circulation, and the guarantee of window exchange for precious metals is quickly abolished. The stability of modern currency is based on issuance or circulation, not on the stability of value. Of course, there is a historic transition period from value stability to quantity stability. This transitional period condensed into the establishment and collapse of the Bretton Woods system in the 20th century. However, looking at it broadly, Russia, for example, had entered the stage of non-cash banknotes as early as the imperial Russian era, and earlier in Chinese history, the Jin Dynasty founded by the Jurchens issued and operated non-cash banknotes from the beginning. Member of the Board of Directors of the Swiss Sovereign Currency Initiative: Cryptocurrency can be used under the sovereign currency system: According to cointelegraph, the referendum on "sovereign currency" held in Switzerland on June 10 failed. Although it received 25% of the votes in favor, it was opposed by the Swiss National Bank. The SNB said its job would become "more difficult" if the referendum passed. According to Bloomberg, Beat Weber of the Austrian National Bank said that the similarity between Bitcoin and sovereign currencies is that, without being backed by capital, it would eliminate the ability of commercial banks to create money by issuing loans. Emma Dawnay, a board member in charge of the Sovereign Currency Initiative, said in Forbes on June 11 that cryptocurrencies could be used under her proposed system. Although the concept of a sovereign currency has not yet been adopted, "the Swiss government may be able to bring debt-free new money into the economy through blockchain technology". [2018/6/12] Get rid of the constraints of physical form, and then get rid of the constraints of cashing. The issuance and operation of banknotes rely on quantity constraints. It should be said that in the era of the central bank, there is a reliable way for currency operation to stabilize its quantity. The quantity of account currency is stable, and there is also a process from absolute stability to relative stability. In recent years, a practice process of dynamic adjustment and balance has taken place, that is, the expansion of total quantity stability to incremental stability. The most representative one is a short-term interest rate adjustment rule established by John Taylor of Stanford University in 1993 based on the actual experience of US monetary policy. The inflation targeting system that the Taylor rule strives to achieve has gradually been referenced and accepted by various central banks. From this point of view, the theory of monetary value, which is essentially explanatory in the era of political economy, has in practice been replaced by the theory of quantity in the era of the central bank, and has shifted from the rigid quantity theory to the policy practice of stable increment. surpassed. Currency Form and "Accounting Rules" In the era of metal coinage, a relatively stable currency accounting unit was produced, and there was a clear basis for accounting activities; The exchange relationship was stabilized by the constraints of value stability; finally, in the banking era, it was transformed into a stable relationship between banknotes and coins, with banknotes as the main currency and coins as auxiliary currencies. The operation of banknotes follows its own accounting rules, while coins as auxiliary currency follow the accounting rules of banknotes, but in fact, in most cases, although coins still retain the circulation inertia of minting, they often only involve small transactions or auxiliary means of payment and thus less involved in bookkeeping. In the banking era, currency is completely account-based, and account activities technically completely replace the activity circulation in the minting era. The complexity and extremely high efficiency of bookkeeping activities are beyond the reach of the minting era. In particular, it must be clear that financial bookkeeping activities have become the main content-zce of currency circulation, and corporate bank account activities can no longer be completely returned to the level of minting activities. For example, the circulation of accounts receivable of enterprises is entirely bookkeeping activities, rather than currency circulation in the minting era. So far, the form of currency cannot be understood in a narrow sense in the physical sense, nor can it be understood abstractly from the level of value, and it cannot be deduced by rigid mathematical formulas. The form of currency is a product of the system of currency accounting rules in reality. Modern currency is an account currency, which is intended to be the bookkeeping activity mainly used in currency activities and their circulation. As far as the personal side is concerned, bank bills, savings passbooks, so-called "electronic money" and so on are all bookkeeping links, tools or instructions of bank currency, while banknotes, cash and coins are increasingly reduced to bank currency bookkeeping activities. Auxiliary means or supplements. The part of monetary activities that is "completely separated" from bank bookkeeping activities still exists, but it is already under strong supervision. Currency bookkeeping activities exist at different levels, and there are many bookkeeping links. Personal experience is often one-sided and partial. The issuance and circulation rules of physical currency, metal coins, and banknotes are different, which is often interpreted as being determined by the physical form or character of the currency in circulation, or that the abstract value can combine different currency forms "Together". But why does the economy and society choose currencies of different physical forms? This is determined by the changes in the demand for money caused by changes in the real economy, but what changes have taken place in the demand for money? For example, accounts receivable can be transferred, which was difficult and unimaginable in the age of coinage. At that stage, similar situations must rely on corresponding legal arrangements as a transfer of creditor's rights, not accounts. effective arrangement. It can be said that "value guarantee" is understood as the basis for issuance and circulation, and fundamentally, it is a matter of accounting basis. Fundamentally speaking, this bookkeeping basis must be understood from the account bookkeeping system, rather than copying the circulation logic of precious metals. The payment between two subjects can have a bookkeeping relationship, which happens only when the two are in the same account system, so there are account opening and maintenance, bookkeeping instructions, bookkeepers, and bookkeepers. A series of issues such as accounting rules. Who will guarantee the operation of this account system? If this cannot be done, the circulation of coins is adopted, and bookkeeping becomes auxiliary; if the circulation of different coins is still not good, the circulation of precious metals is adopted, and bookkeeping is completely unilateral. It is a very simple and easy-to-understand expression to condense the change of currency form into the evolution of currency materials, but it often omits the changes of currency account attributes and accounting rules. The development of monetary economy is to simplify and standardize the complicated and separated account relations and bookkeeping rules, thus greatly promoting the exchange of economic relations. In this sense, the essence of currency form change is the change of bookkeeping rule system. The bookkeeping rule system refers to a series of normative components such as account opening, bookkeeper, bookkeeping instructions, and bookkeeping rules. Nowadays, the bookkeeping rule system is mainly the bank account system. The withdrawal of the so-called old banknotes and coins from circulation is not entirely prohibited by laws and regulations, but also the result of their incompatibility with the current system of bookkeeping rules.


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