Click "Blue Word" above to follow us!Introduction to the authorAgra Investment
Nik Bhatia (Nik Bhatia)
Professor of Financial and Commercial Economics at the University of Southern California Marshall Business School is the research direction of applied finance and fixed income securities.Earlier, he worked in large institutions and engaged in US Treasury transactions as an asset managerMumbai Investment. He has rich trading experience in the currency market and interest rate futures.
During the practice of asset management, the author studied the relevant financial theory of digital currency, analyzed the potential of digital currency in the capital market, and published the paper "The Time Value of Bitcoin".introductionBangalore Investment
The more severe the world changes, the more stable the coordinate system is needed.In this world where gold, banknotes, digital currencies, and encrypted assets coexist, it is a very important ability to predict the currency.Author Nik Bhatia (Nik Bhatia) uses the "layered" framework and the real events in history to track the evolution of the currency system to explain why humans use the credit currency system to replace metal currencies to reveal the secrets of currency hidden at different levels.The fascinating and complex currency history is presented in an analysis.
This book allows us to better understand the operating mechanism and future trends of the world’s financial system today. The book uses the perspective of layered currency to track the evolution of the currency system and explains why human beings use a credit currency system to replace metal currencies, and reveal them revealed thatDifferent levels of currency hidden secrets.
Deputy Director of the Institute of Finance of the Institute of Finance of the Academy of Social Sciences
Deputy Director of the National Financial Development Laboratory
The most inspiration in the book is the evolution of currency pyramids with the change of the times.In my opinion, this book has another feature, which provides us with a new idea for us to understand the outbreak principles and response mechanisms of the financial crisis.
Chairman of the National Finance and Development Laboratory
It is pointed out that the poverty of the existing financial theory, trying to provide a new analysis framework for the currency world from the perspective of currency layers, and based on this framework, all the common characteristics of all the currency systems and furnaces so far are "The success of the currency pyramid.Chapters content refine 01
Concept of layered currencyGuoabong Stock
Layout currencies refer to different levels or levels in the currency system.For example, in the ancient Buddha, Londosa, people used a currency called "Gold Flin". This is a gold coin. It is the first layer of currency and final settlement.At the same time, Midi Bank issued a paper certificate, saying that "Midiqi Bank will pay a gold coin on demand", which is the second layer of currency.This kind of paper certificate is valuable because it represents the value of gold and is the bank’s commitment to the owner, which can be understood as a debit.
All second -level currencies are debit. Their value does not come from itself, but from the promise behind it.Holding these lives, that is, the commitment to hold a bank, there is risk of trading opponents. This is an important concept in the theory of currency, that is, the risk of trading the opponent.Simple understanding, the risk of transaction is that if you have a sum of money in the bank, the bank may be bankrupt due to poor management, and you may not be able to get back if you exist in the bank.
Picture source: original text
The reason why currency levels exist are to a large extent because people trust in different currency forms.Different currencies carry different degrees of trading risks, which makes people willing to use them.Therefore, in the framework of stratified currencies, the association between currency tools is displayed according to the relationship between the financial institutions’ balance sheets.
The first layer of currency is a better form of long -term value storage, and the second layer of currency is more suitable for transactions because it is more convenient for bit coins.
In the future, with the development of technology, layered currencies may develop further.For example, central banks of various countries are currently considering buying and selling Bitcoin (BTC) in the foreign exchange market, in order to guide their digital currencies with Bitcoin as a unit.Banks may also issue their own stablecoins to provide advantages in holding central bank digital currencies.Banks may greatly increase transparency by using distributed ledger technology and transition to dynamic balance sheets, so that investment public can see real -time capital ratio.02
Federal Reserve and its world influence
The Fed originated in the early 20th century. At that time, the pound was gradually replaced by the US dollar. At the same time, the United States borrowed the concept proposed by Walter Bai Zhihao and set up the final lender in the center of the financial system.At the beginning, the number of currencies in the United States was not large.During the colonial period, due to the lack of a coin, European coins were not enough, and currencies were mainly replaced by shell beads, tobacco and other items.Until 1792, the United States established the US dollar as the official currency unit of the country, and passed the "Coin Act" to stipulate that $ 1 is equivalent to 1.6 grams of gold, or equivalent to 24 grams of silver, which gradually established a US dollar -based basisMonetary system.
The financial crisis caused by the Great San Francisco earthquake in 1907 made the United States further understand the importance of this concept, and finally passed the Federal Reserve Act in 1913 to establish a federal reserve system.According to the bill, the core function of the Federal Reserve is to provide a flexible currency, and to provide re -discounting means for the US banking business to establish a more effective supervision of the banking industry.
In the 2008 global financial crisis, the Fed played the role of the last lender in the world.It has passed a series of rescue measures, such as providing loans to the insurance giant US International Group, guaranteeing monetary market funds, and allowing Goldman Sachs and Morgan Stanley to transform from investment banking to bank holding companies.Systematic collapse.
However, with the complex evolution of the global financial system, the role of the Fed as the last lender has surpassed the national boundary. This problem can neither escape nor discuss.Therefore, in the US dollar pyramid, there are not many places that can not rely on the Fed to provide liquidity protection.
The birth and development of Bitcoin
In 2008, a mysterious password expert published a papers called "Bitcoin" on the Internet, which became the birth sign of Bitcoin, and that day also marked that the currency world entered a new revolutionary revolutionary revolutionary.Sexual era.Bitcoin realizes decentralized transactions and settlement through its unique blockchain technology. It is like a digital cash that can be transferred freely and anonymously on the Internet.
Now Bitcoin has been held by more than 100 million people around the world, and this number even exceeds the total population of many small countries in the world.Although Bitcoin still faces many disputes and regulatory issues, its existence has proven fundamental changes in the shape and payment methods of the currency.As Bitcoin accepts the way of currency and currency thinking, various second -level currencies such as Bitcoin commitment, alternative cryptocurrencies and stable coins are gradually developing.According to the relevant illustrations, we can see that Bitcoin is at the top of the currency pyramid, while various other second -level currencies are derived from the balance sheet and price relationship, respectively.
Picture source: original text
The emergence of Bitcoin not only threatened the power of traditional currency and financial systems, but also provided the opportunity to rebirth.In a multi -polarized world, countries will seek currency changes, and Bitcoin provides possibilities for this change.Individuals will no longer use the currency of their lives, but can choose their own currency according to their preferences and needs.The vision of layered Bitcoin will enable individuals to self -empower the specific location in the currency territory and realize the freedom of currency surface.04
Promote the central bank’s digital currencyUdabur Wealth Management
This currency is different from the traditional legal currency (such as the US dollar, the euro, etc.). It is an electronic cash based on blockchain technology that can be held by anyone.In debt, they can always exchange legal currencies to the central bank at any time.The central bank can inject new funds into the economy to stimulate economic growth and improve employment.
Free currency noodles
This means that people can freely choose and use their favorite currency units instead of being restricted to currency they are born or used in their lives.This concept is most prominent in digital currency, especially Bitcoin.
Introduce more Bitcoin (BTC) transactions in the open market business
Under the leadership of Bitcoin, the balance of monetary power may be transferred from the government to the government.In the future, central banks and banks around the world will have to adapt to the new monetary system.For example, they may choose to buy Bitcoin and hold them as their cash reserves.
Selected statement excerpt
I think that confirming the "identity" of currency in the widest sense is a necessary prerequisite for understanding the current complicated phenomenon of currency circulation.In this regard, I am willing to share with readers a famous judgment of Heman Minsky: "Everyone can create currency, but the question is whether it can be accepted." HereWhether species play the fundamental standard of currency role, based on this, the currency is obviously complex and multi -layered.There are a variety of currencies in reality. Although most of these currencies are not "sovereign currencies", and many are even difficult to call tokens, they can exert currency functions within a certain extent, so they should be affected by themselves, so they should all be being affected.Integrated in the field of currency theory research.
If another businessman accepts a bill that represents the promise of paying gold in the future, then he accepts the willingness to delay the final settlement of the final settlement.
The basic argument of the relationship between BTC and the central bank’s digital currency is that BTC will stand alone on the second floor of the currency in the future.If you can only use one word to explain this judgment, the best choice is the word created by economist Nassim Nicholastaleb in 2014: Anti-Fragile.Tellerb is defined as anti -fragile: some things benefit from impact; when they are exposed to volatility, randomness, disorder and stress, they will thrive and they like risks and uncertainty.However, although this phenomenon is ubiquitous, there is no word to describe this nature that is completely opposite to vulnerability.We call it anti -fragile.Anti -fragility is not just elastic or stable.Elastic things can remain unchanged in the impact; those who are anti -fragile will become better under the impact.
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