Topic: [the concept of money before study Bitcoin] 2. Money? Bitcoin? What is it? (Read 155 times)

1.the concept of money

I'm going to write down the concept of money, essentially dollars, won, gold, etc.

Money can be defined as a means of payment used to trade various goods.
But it's not just cash, but stocks, government bonds, corporate bonds.
This is called financial assets, and this is a concept that corresponds to real assets such as land, buildings, machines, etc.

Once currency is recognized and paid by the laws of the country, even if there is no particular form of currency, it is currency that is circulated in the market.



2. The Advancement of Money

Looking back on the evolution of the original currency,
It's evolved from barter.
But the fact that it's difficult to meet the two sides of the need has led to the evolution of the currency exchange system, in which goods are traded using money instead of being exchanged directly.

For the same reason as above, metal coins appeared in durability, mobility, and scarcity values.
Metal currency has been a trend for a long time, because the durability, mobility and scarcity that we talked about above were more efficient than others.
But there were limitations to the exchange of metal currency by weight, and there were problems with storage, damage and purity, and casting money was created to solve this problem.
In other words, the government issued a credit note.

Credit money is based on the belief that the state or the central authority issuing money will guarantee the value of money, which has been recognized and used as a condition of money.

Since then, the issue of lowering manufacturing costs for casting money has started to emerge from private banks, and when the establishment of private banks became booming and the convertible currency boom became a modern-looking central bank in Britain, which is the basis of the central bank system in most countries today.

Since then, the issue of exchange rate fluctuation and adjustment of balance of payments, and the aftermath of the economic depression after World War I, the gold standard centered on the United States was formed.
In a nutshell, only the U.S. dollar has maintained a fixed exchange rate with gold, and the other countries have a fixed exchange rate to stabilize the exchange rate by setting and maintaining the benchmark exchange rate with the dollar.

Since then, dollars have been used as our common currency.


3. The present problem of money!

In fact, before you write a problem with money,

Recently, problems with the dollar, yuan, which we assume has issued too much, and other problems and points about the currency we use now are increasing.

What is the previous article, Capitalism? Please check the article.


4. What is Bitcoin?

Bitcoin was born in the midst of the 2008 financial crisis.

At that time, complex derivatives, reckless A-rated credit approval, and the collapse of the subprime mortgage system have limited existing banking and monetary systems.
The central bank chose quantitative easing, but it eventually led to a decline in the value of money.
There were concerns about the need to address the problem of traditional floating exchange rates and virtual currencies.

The existing financial system was accessible to only a certain person with credit (how much money he had, what happened, etc.).
Encryption money is not modified because it is accessible to anyone and is encrypted.
And we also shared this led to every user per block, and if we didn't hack everyone at the same time, we configured the system so that it was impossible to hack, and it became a blockchain, the safest secure technology, that everybody could share the ledger.

5. What is blockchain?

It is called blockchain because each chain is connected between the block and the block.
One block stores all the information, including newly issued coin and transaction details, and this distributed technology is called blockchain.
The process of creating and connecting these blocks is called mining.

All information stored in the blockchain will be held equally by wallet holders (nodes).
It's highly secure because all the information is distributed.



The world's major economies are currently working hard to legislate or regulate cryptocurrency.
But it's not easy. If encryption is to be a major part of the system, we need to change the existing system.
I think it's difficult because it's already optimized for credit cards and the financial system that we use, and we lose a lot if we lose it.

But I think it's a two-pronged Iranian.
I don't think it's going to stop the big waves, and even if it's going to work with the existing system, it's going to be used in everyday life.
I'm sure it'll come.