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What is the fundamental meaning of digital currency?

Author:Hubi Date:2018-07-25 14:57:45

There are many problems facing the contemporary economy. The most important thing is that it is very difficult for the country to fundamentally solve the problem of the stability of the legal value of the currency. This situation became more serious after the collapse of the Burton Woods monetary system.

 

Take Mainland China as an example. In the early 1980s, 1 cent was money and 10,000 yuan was already a measure of wealth. Today, with the yuan as the unit, the penny has lost its meaning. 1 yuan is 100 times that of 1 cent, so the past 10,000 yuan was a rich person, and now it is at least 100 times that is 1 million.

 

In fact, the purchasing power of 1 million is also limited. In first-tier cities, one million yuan can only purchase two or thirty square meters of housing. In 2008, when the world financial crisis broke out, major countries implemented a policy of loosening money supply. Not only did the country's currency depreciate, but it also led to the devaluation of other countries' currencies. The people had to bear the consequences of currency devaluation and inflation.

 

In short, the greatest tragedy of modern mankind is that only by working hard can it make its income keep up with currency devaluation and inflation. Therefore, how to maintain the value of money is a common issue of humanity. In theory, the denationalization of money is a choice, and digital currency provides a choice and an experiment.

 

In the history of the world economy, there have been crises one after another, and in the future there will be crises. If the world is unpredictable and completely out of control of the financial and monetary crisis, the meaning of digital currencies is likely to be a major rescue plan. Therefore, do not underestimate the potential value of such currencies to humans.