Bitcoin originated from the global financial crisis in 2008. The US dollar spamming caused inflation on a global scale, which made the world economy vulnerable. It highlighted the long-standing flaws in the international currency system, which gave birth to and expanded the use of currency quantification. The dissemination and influence of Bitcoin, characterized by its decentralization, decentralization, freedom, and openness concepts.
Under the current international monetary system, the floating exchange rate system only maintains the stability of the dollar's internal value, but it cannot restrain the unlimited foreign currency issuance of the US dollar. The US economic growth model that abuses coin rights and excessive debt consumption has led to excessive expansion of the virtual economy. This not only affects its own economic development, but also triggers a global financial crisis and inflation, which has brought the world economy into a predicament. The emergence of Bitcoin is not only an expression of people’s confidence in existing banknotes, but also an objective reflection that the existing monetary system cannot meet the needs of the healthy development of the international economy.
Although Bitcoin advocates decentralization, monetary limited distribution and other concepts lack the necessary body credit guarantees and support of the real economy, it has hit the soft underbelly of the existing monetary system. The dominant and dominant position of the U.S. dollar in the international monetary system does not ensure the security and stability of the operation of the international monetary system. On the contrary, the unbridled abuse of the U.S. dollar has caused and exacerbated the turbulence and crisis of the international economy. If the international international financial system cannot be eliminated early and effectively, The major drawbacks of the monetary system are to set up a restraining mechanism to curb the unrestricted issuance of the U.S. dollar, maintain the relative stability of market credit and market value, and keep the international economy and financial sector from being in an unstable state for a long time. Similar innovations that will change the international monetary system will continue. Once this happens, When innovation has considerable vitality and influence, it will have some impact and impetus on the reform of the existing international monetary system. Looking at the healthy development of the international economy and reforming the international monetary system, it is necessary to gradually form a diversified international currency subject and establish an international monetary system that restricts and checks each other.
"Everything that exists is reasonable. Anything that is reasonable is realistic." Bitcoin has become a darling of the era of electronic networks. However, the emergence and popularity of online currency is inevitable for social development. There is no bitcoin. There must be other forms or names of currencies that serve such roles.
The emergence of internet finance has enriched and developed the connotation and extension of the traditional financial system. Through the introduction of advanced technologies such as the Internet, the Bank has continuously enriched traditional financial services and improved its financial service level. It is more convenient and safer, more flexible and more effective for the society in the financial services industry. The objective needs, thus achieving the open, democratic change concept advocated and emphasized by Internet finance.
The design concept of online currency represented by Bitcoin conforms to this demand for change to some extent, and naturally it has a certain basis for survival and development support. As the initial form of the electronic money transition to the advanced stage caused by the transformation of information technology, it indicates that the future currency form will undergo no small changes, and digital currency innovation will gradually approach.
In particular, with the mutual penetration of Internet economic activities and real economic activities, as well as the increasingly close connection, the scope and extent of economic activity of Internet money intervening entities will become increasingly deeper, and it will be the general trend to replace the legal currency in some areas.