1. Bitcoin dollar standard, the solution to future finance

——Answer the meaning of welcoming the new world in the article “Invite Satoshi Nakamoto to welcome the new world.”

The emergence of blockchain provides experimental data and evidence for us to rewrite the history of finance and fiat currency. It should be said that the theory must conform to the experiment. Under the condition of the Bitcoin standard, any financial theory that does not fit the blockchain experiment needs to be rewritten. But the vast majority of financial experts do not have the basic knowledge of blockchain, not to mention rewriting it is difficult to understand. To understand the blockchain, you must have the height of Satoshi Nakamoto; to understand technology, products, and gold history; to understand Jiaozi in the Song Dynasty in China; and to understand modern fiat currency, you must have a philosophical height. It is very challenging for economists. Satoshi Nakamoto knew what he was doing, so he remained anonymous. His purpose is to overthrow fiat currency and realize the Bitcoin standard. And as a staged feasible goal, the Bitcoin dollar standard should be acknowledged first. In order to enable economic and financial experts to understand the Bitcoin dollar standard, I searched for Satoshi Nakamoto, and popularizing Bitcoin knowledge, explained the value of Bitcoin, and simplified the implementation of the Bitcoin standard into a financial problem. Many financial scientists agree with the Bitcoin standard, but unfortunately they do not understand the blockchain and cannot propose a solution. Based on blockchain experiments, my solution is the first proposed by humans.

The blockchain is a simulation of human society. It contains various ecologies linked by token, equivalent to multiple countries because countries are also ecologies. The most prominent feature of the blockchain is its natural evolution. In other words, Satoshi Nakamoto opened Pandora’s box, and the devil and hope were released. It quickly reproduced the entire financial process of human beings from primitive society to modern times, including the future, and has become the cheap financial lab in society. Note that I used “future” here. Why use the word “future” refers to the direction of modern financial reform.

For example, the blockchain confirms that stablecoins (equivalent to the base currency issued by the central bank) must be endorsed with reliable assets. Backed by the dollar, the most stable asset in the contemporary era, stablecoins will be recognized by various ecologies. And UST, backed by unreliable assets ( as Luna equity), collapsed from $60 billion to a market value of $300 million in just one week. Credit currency is generally an unreliable endorsement, and fiat currency is a credit currency. The currency with the most minor credit is called air currency, and the currency with the highest credit is called asset currency. Currently, the blockchain is called asset currency, a stable currency backed by the U.S. dollar. It is also the last resort.

Another example, does the stable currency have the function of the Federal Reserve to regulate the overall ecology of the blockchain? No. In other words, in the asset currency ecology, there is no need for regulation like fiat currency. The fiat currency needs to adjust, and the fiat currency adjustment applies to the uncertainty principle, that is, the adjustment is blind.

For another example, the Federal Reserve is not responsible for the dollar’s price but affects the dollar’s price by adjusting interest rates. The price of the U.S. dollar is M2 pricing. The M2 money that price the entire fiat currency in the world is less than 100 billion U.S. dollars but price more than 300 trillion global M2 currencies. The Chinese renminbi is priced at M1, and it is difficult for the market to speculate on the renminbi. It is the same as the maintenance price of each stablecoin in the blockchain. In this regard, the Hong Kong dollar is also M1 pricing. The Fed’s pricing does not conform to the blockchain experiment, nor does it conform to the asset currency’s pricing principles. He is the principle of fiat currency, highlighting the backwardness. The pricing of M2 encourages speculation, and financial speculation is the exploitation of industry. M1 pricing is more stable than M2 pricing. It is a joke that the Hong Kong dollar is anchored on a fluctuating ruler. In the Bitcoin dollar standard, the Federal Reserve is responsible for the stability of the digital dollar UDAI. The appreciation of Bitcoin is the “interest” calculated by the Federal Reserve daily to store the digital dollar UDAI annually.

Under the Bitcoin dollar standard, the Federal Reserve does not need to undertake the work of economic adjustment. The current adjustment of the Federal Reserve is to treat the symptoms but not the root cause. To deal with all economic diseases is adding and subtracting these two herbs. Its treatment level is slightly higher than the “bloodletting” of pre-medicine because bloodletting has only one medicine; also equivalent to the “panacea” of modern medicine to drink water. It’s all a joke.

At that time, fiat currency was advanced under the condition that gold was both a stored-value currency and a ruler. But compared with the Bitcoin dollar standard, it is far behind because the fiat currency has not applied modern technological means and achievements. When the train comes out, do we still need a horse-drawn carriage? The Bitcoin dollar standard overcomes the defects of gold and legal tender and provides a new theoretical framework. It may be a financial revolution; the financial structure will be restructured, and some large banks need to be transformed. The financial revolution will enable humanity to start a 120-year economic growth because it will produce the effect of a two-wheel drive of industry and finance.

The financial framework based on fiat currency is outdated and cannot solve future financial and social problems, and we need a new theoretical framework based on blockchain practice.

David Chaum started cryptocurrencies in the early 80s, and Bitcoin came out in 2009. After the emergence of Bitcoin, many financial experts put forward the idea of the Bitcoin standard. Unfortunately, there is no solution due to their lack of technical skills to further their understanding of blockchain. This year I proposed the Bitcoin dollar standard, which IS NOT 1 BTC=1 BTC. It is a financial reform proposal with minimal shock; it will take a long to achieve because consensus is not easy. I have simplified the reader’s requirements for the difficulty of blockchain knowledge, hoping that it will be easier to reach a consensus so that the Bitcoin standard will become a financial issue and let financial experts play a role.

Buffett represents the mainstream investment point of view, and Bitcoin and gold cannot fall into their investment framework. My design puts Bitcoin into Buffett’s favorite mode: certainty investing. The method I designed is also used in the financial platform “Chainless p2p financial system” We developed. The deterministic growth of Bitcoin will stimulate the mainstream market, and the financial world will change. Bitcoin formed a deterministic upward trend through the two funds at this time. Described in Chapters 12 and 13. Therefore, Bitcoin becomes a better deterministic income than fixed income. It is a new class of investment. It needs to meet the conditions of the Bitcoin dollar standard.

When Satoshi Nakamoto launched his Bitcoin system, he proposed that Bitcoin was the solution to the three major problems of central bank devaluation, insufficient reserves of commercial banks, and micropayments. Unfortunately, he only perfectly solved the first problem of currency issuance. The last two questions are not complicated but require new thinking. None of the current blockchains is a perfect solution. the

Chapter 8 of the article “Is Satoshi Nakamoto’s original intention to store value or apply”? Chapter 12, “Bitcoin’s Dollar Standard Solution,” and Chapter 13, “Bitcoin’s Natural Growth Curve,” Chapters 8, 12, and 13 are good but hard to understand. Chapter 13 describes a 132-year growth curve, with rapid growth in the first 48 years and Bitcoin reaching $500,000 in 2030.

In my article, I emphasize the views of the financial lab. For economics to become a science, formula descriptions are not enough. There must be a laboratory like physics. A discipline without a laboratory is purely thankful. Mathematics has no laboratory, but it can be verified. Finance has paid too high a price for using society as a laboratory. We are all guinea pigs. Long-term effects are utterly different from short-term effects, and adjustment methods that are effective in the short term may not be effective in the long term. The most typical is the cycle of interest rate cuts and hikes, which is purely a quack cure. Our body only signals hunger when the body needs something; it cannot tell what the body is lacking. Is it protein, fat, sugar, or trace elements?

As a result, one eats more. The Fed’s rate hikes and rate cuts, like a person’s response to hunger, do not reflect the underlying problems of the body. There is no way for fiat currency to deal with the ever-changing market problems with only two adjustment factors: volume and interest. After Bitcoin came out, it became a ridiculous thing in the world to issue fiat currency and then make economic adjustments. Blockchain has proven its infeasibility. Practice is the sole criterion for testing truth. The future fate of fiat currency is Jiaozi in the Song Dynasty in China. The fate of failure is doomed.

Only after understanding the operation of blockchain and seeing currency and finance can we know its irrationality. I finally understood why I couldn’t understand what Greenspan said back then. It turned out that the older man was like a charlatan playing tricks, pretending to be confused, in fact, he understood in heart, and when he explained clearly, he missed the bottom line. Henry Ford said that if the people understood the truth about finance, there would be a revolution the next day. Revolution is not as good as reform, it must be gradual, and now the conditions are met. Acknowledge history, repair historical mistakes, pay back the sins of grandpa papa and us, and reach a broad financial consensus.

Only when the U.S. dollar becomes the anchor of the world currency and the U.S. dollar changes from a credit currency to an asset currency the world economy will be stable. It is a decades-long process. We are honored to be a part of making and witnessing history. It is the responsibility and luck of our generation to realize the Bitcoin dollar standard. Of course, the United States has unique advantages, China has China’s advantages, and Europe has European advantages. Whoever wins in finance will become the anchor of the world. According to my article, this anchor is neutral, and the whole world will agree.

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