This article is the communication between reader Lu Xiaobo and me about the DW20 decentralized currency. He was the first reader to comment on my article on the chainless.hk website. The world makes friends through literature. He is a lawyer with a wide-ranging vision as a career need. He recommended a book, “Money: The Unauthorised Biography,” and attached his opinion on “a correct understanding of the origin and essence of currency.” Our discussion helps readers understand the DW20 currency.
Bitcoin Dollar Standard
Answering the question of what it means to welcome a new world in the blog series “Invite Satoshi Nakamoto to Welcome the New World”
Macroeconomic Outlook for 2023-2025
How to Characterize Bitcoin
What is most likely to trigger the next bull market
How to see the relationship between AI and blockchain
As can be seen CeFi and DeFi have been at the center of the debate
Compliance issues with USDT
What will the Bitcoin market look like in 2024? In fact, friends of bitcoin and blockchain have to recognize the position of the whole sector in economic activity, based on the time of bitcoin’s rise, bitcoin is quite a second-tier stock in the U.S. stock market. So whether bitcoin has a market or not, you have to analyze whether US stocks will have a big market.
Bitcoin has a natural growth factor, but it is not a purely physical phenomenon, and mathematical predictions do not take into account the human influence on the outcome. PlanB’s model is based on exponential growth, where the larger the market capitalization, the more energy is needed to drive the growth.
What is a standard? It is the standard unit of measurement by which all goods are measured. The gold standard means that all transactions of goods are measured in gold, including fiat currencies. The Bitcoin dollar standard is good for the Federal Reserve, good for Satoshi Nakamoto, good for Bitcoin holders, and good for the stability of the world economy.
Is the bitcoin standard fair to people who don’t have bitcoin? This is a question that is often asked. People who don’t hold bitcoins feel it’s unfair. If the bitcoin standard is adopted, won’t those who held it earlier take advantage of it?
Satoshi Nakamoto should not come out is an objection heard in the discussion of this article. The reason Satoshi Nakamoto will come out is that the price of coins will plummet. If he comes out, the Bitcoin system is centralized. That’s the prevailing notion in the bitcoin community.
The Bitcoin dollar standard is the Fed’s competition to get this position. In other words, the Fed and others may realize this vision. This article takes the Hong Kong dollar as an example to talk about how the Hong Kong dollar realizes the Bitcoin Hong Kong dollar standard.
The RMB is said to be anchored by a basket of currencies, but it has not been seen that he adjusts his foreign exchange reserves proportionally. In fact, the exchange rate is adjusted according to the index of a basket of currencies, which has nothing to do with foreign exchange deposits. It is to find a benchmark for adjusting the exchange rate. So a basket of currencies is not an anchor. To change the status of coupons, there must be a new anchor. In fact, Bitcoin is a good choice.
The study of the Federal Reserve and fiat currencies has to be analyzed from a different perspective to reach a different conclusion. It is with the practice of blockchain and bitcoin that allows us to analyze the comparison of fiat currencies from a blockchain perspective.