Fed VS Bitcoin, after all, is a game of thrones

Poker Finance brand: the most trusted commodities and financial services industry think tank.
Cross-border, depth, professional – brings together the industry’s most worth sharing, the most knowledgeable information concentration.
Welcome to the venue and micro-channel public platform: puoketrader, Website: poker large investors and financial industry think tank platform

Lead: power outcome of the game must be more effective it?

text | general manager of Zhejiang beta equity funds CFA Guo Tao source | Alpha ID: hedgefundjournal Edit | Poker investor, please indicate the source < / p>

money is a power, sacrosanct.
Only God can create life, only the government can create money.
Because there’s logic is power.
Rely order to generate power, while the advancement of technology provides a means to break order to some degree, which in turn inevitably challenge the authority.
Bitcoin technology is irreversible, but that does not mean that the fate of virtual currency itself, just as gold was abandoned by divine fiat money system.
Power outcome of the game must be more stable, but not for more effective.

divine gold – currency “anchor” value

great teacher Marx said “money as a measure of value of commodities, merchandise is inherently
that external measure of value in the form of labor-time. “money can be used as the medium of commodity circulation, is the monetary value of the property itself must have.

So money, even the power of the game, they have to give the user a logical basis for measuring the value of.

banknotes rely on government-mandated force to be worth endorsement, it can be exchanged for all of their goods and services to buy, so in essence is the establishment of a social credit relations in the country and the national authority on the basis of credit.

In the gold standard period, although the bill itself has no commercial value, but the “vouchers” as equivalent to gold, paper money borrowed as a gold value from the value of gold there to the “value”, giving circulation
the money provided an anchor price.
That is the gold standard, the money then how can not force the issue out of nothing, the total amount of money must be around the government’s gold reserves.

But the problem is that the value of gold is where to borrow it?
In addition to wearing a good-looking, can not eat, can not drink.
Gold is not a natural currency, although we often say.
Gold is the prevailing human smelting technology, gold is more convenient than barter, so improving efficiency.
More corrosion resistant than shells, high temperature, thus reducing the loss.
Rarer than copper, it is easy to carry and store, so gold is a result of natural selection in human society, not a natural formation.

When the government abandoned the God-given “anchor”, that is, money is no longer on the gold standard or silver standard currency on the left of credit relations, credit and power to government guarantees.
And power, and sometimes is more arrogant.

no checks and balances of money began to run, when the Federal Reserve in order to save the United States after the financial crisis, three QE monetary base expanded from 800 billion to 4.5 trillion seigniorage to you I can not believe.
Excess capacity to cover up the nature of the final inflation and devaluation, but by the money over a stable global economy, bringing extreme rich-poor divide.
Almost no middle class and proletarian monthly wage growth may still be possible to maintain the standard of living, but the assets of the rich has become astronomical.

The number of billionaires around the world twice before the financial crisis.
The world’s richest 85 people have wealth, equivalent to all the wealth of the world’s poorest half of the population of the hands, and the process of the first four years of implementation of QE after the financial crisis, which increased the wealth of 85 5400000000000
dollars, the equivalent of creating a two British.

crisis, you are dangerous, that one percent of people are machines.
Do not worry about poverty, unequal distribution, is the root of all social problems of mankind.

artificial goods – Bitcoin is essentially just a kind of commodity

You can say that Bitcoin is the first time civilians by technical means, to the authority of government
try the challenge and tell the world, private property is inviolable.

However, the value of Bitcoin, originally from the technological revolution resulting from use value, when you put your US dollars into bitcoins, your “bit of dollars” suddenly grow wings, it will not
was eliminated, he can achieve the payment, no transaction costs to the speed of light, do not accept foreign exchange controls, so, just as gold, as it is widely accepted practical value, the price also will produce, as a tool, and when he can
to solve a specific problem, he naturally became a commodity price.

dollars> Bitcoin> dollars, as long as the chain continues to practical Bitcoin is a kind of valuable goods.

So in the US, CFTC Commodity Exchange Commission in 2015 for the first time identified Bitcoin with oil, gold as a commodity.
So Bitcoin futures and options to comply with the CFTC and accept supervision.

But with all the advantages of commodity money is also not natural, because you have to be “acceptable.”

Federal Reserve think Bitcoin is a “natural and eggs,” the money, why not deal with you, because you are too young.
A few years ago is the total market value of billions of dollars, but now approaching the billions of dollars in high Shique, the next is 10 trillion times.
The value of money is not created out of thin air, it must be through the transfer, like gold and the dollar is always one pair of seesaw, you are unlikely to holding a taels of gold to buy a breakfast, but it can hold bitcoins
to do so.

I look at what Fed Chairman Ben Bernanke’s position in 2013.

“Our current payment system in the world is rapidly evolving, a variety of new payment management methods continue to emerge, some of the bitcoin related concept is no doubt that progress in these areas can help, but I think Bitcoin
itself has some serious problems. first, it looks and does not provide price stability. its value volatility, has not become a widely accepted medium of exchange. “

” but, really serious
the problem lies in its anonymity, which is its features, but also its bug. this makes it really easy to become illegal trading tools and services in smuggling, drug traffickers or terrorists, etc. Needless to say, the government is not willing to see this
things happen, so I guess, for regulatory or similar Bitcoin virtual currency trading is sooner or later, and this will obviously undermine its charm. “

Bernanke think this is a technological advancement
, but it is difficult to be widely accepted, because prices fluctuate too much.
But it naturally convenience, bound to be regulated by the government.
So everything is in accordance with the logic of this textbook staged.

value from the consensus – a rare and does not make any sense

before Tencent’s Q coins, is a closed system, the back is also a service linked,
Q coins can also be achieved – -Q RMB currency conversion, but why it can not become a bitcoin this subversive innovation?

is essentially money encryption technique by creating a rare, but there is no threshold technology itself, but money encryption of computing a set of equations open source code, and then the processing operation is generated by hardware.
Various types of encryption currency has decentralized, open source, can not be forged and limited benefits, but it kind of limited currency can be created unlimited.

The traditional electronic money is just a token, a vassal of legal tender, while the value of bitcoin from its liquidity, or called consensus, something deeper faith.

I think maybe some extent, Bitcoin has become a religion, like religion, although religion may be atheists think theoretically infinite created, but the human religious believers, through culture
history of precipitation, there can withstand scrutiny, a complete system of philosophy and logic, so even if you develop a “Almighty God” to teach, only a handful will believe, because for thousands of years of religious experience, time itself is one of the most scarce
the value of.

Encryption currency, creationism as an alternative to gold, although can limit the development of new species, but perhaps only created the history of this, the public has enough Pang Daxin Bitcoin, in order to truly power in this
game, stand the test of time.
Therefore, although the market there are numerous kinds of encryption currency, I think in this religious war currency, Bitcoin can there be only one future.

future value

Bitcoin will not come from its scarcity or practical, but a belief, because the payment technology has matured, when Bitcoin can be purchased direct service, rather than through some kind of legal tender currency
when calculated in terms of its value, the value of currency in circulation law will be gone.
Because the next time the central bank further expansion of the balance sheet, when you buy breakfast, you may be told that your breakfast or 1/100 of Bitcoin, but has grown from $ 20 yesterday, rose to the current 25 dollars.
At that time the value of Bitcoin will be very stable, although dollar-denominated prices vary greatly.

Of course, faith, it is easy to shake, sometimes, just a Yinxian.
If your stocks, you know.

JP Morgan Chase CEO Dimon said bitcoin is not really something that will eventually be closed.
Wall Street chiefs finally sit still, merchandise will not be closed, but you can turn off the flow properties.
I think this test of faith and a lot larger than the decline Bitconer imagine many, the game has just begun, and we are all witnesses of this history, I also believe that Bitcoin is an irreversible invention, like a car and
aircraft, it change your life, but then again, a bit like gold coins, although at different historical periods of human society, is not a natural currency, needs a very long period of precipitation and social choice.
The gold has been able to shine thousand years, because every time the credit crisis, may be the gold standard by the Savior, perhaps Bitcoin is waiting for that belong to it, the next crisis.

Fed bit VS coins, the play has just begun.

No tags for this post.