Chinese Ask: Who Wants to Kill Bitcoin?

是谁要杀死比特币？
Who is killing bitcoins?

As the central bank of a paper order was reversed in bitcoin China's fate. December 16, the central bank interviews Paypal, money paid through other third-party payment companies, shall not be required to provide hosting, payment and settlement services for Bitcoin transactions sites. 18, bitcoin prices fell to 2,100 yuan from 4,000 yuan. Prior to December 5, the central bank and other five departments issued a document clearly not bitcoin currency. Previously, carnival Bitcoin ever jump up to a high of 7,395 yuan. Although in the last few trading days, bitcoin prices rebound is not small, but it can be asserted with the improvement and implementation of a variety of containment, control Bitcoin transaction rules Bitcoin regarded in China took a dead end, Hospice of difficult. Further, we can safely expect that if Bitcoin has been so hot down, trouble, will have the same fate abroad.

Frenzied speculation

Provoke fatal disaster

But even so, the Fengyun upcoming meteor passing, we can not rush sorry, it would be seen as mediocre two goods. In the absence of clear nature of Bitcoin, and we do not sullied mad to it. Because the value of the currency on the tool itself, we better take a rational neutral. After all, between the human and monetary scores longstanding hundred thousand turn back, thought-provoking; while banknotes as well as managers of the central bank Younger - which is a typical representative of the Federal Reserve - the reputation of always merely mediocre.

As a novelty, Bitcoin is covered with a mystery. 21,000,000 limited breeding scarcity muster a wildly speculative market. The "go country" of idealism seems to have laid the theoretical foundation of this speculation. Both complement each other, so that was a bit currency "float parade," mighty, menacing. Crazy speculation, coupled with the challenge of endogenous factors existing monetary system, bitcoin killer prepared for their destruction. Reason fingertips, such as interference with economic activity, disrupt monetary order, destruction of the country's financial policy, and so on. After all, the past six months of market performance, the enormous economic power Bitcoin is speculation has any monetary authorities are afraid to be underestimated. It can be said, if not regulated, crazy speculation will financial markets as a whole have a significant impact on economic activity. Therefore, Bitcoin is suppressed, the original speculators to blame.

Bitcoin is a competitive currency

Try issued

However, we can not therefore deny the value of bitcoins, especially in the Network Economy Bitcoin has the long-term value. The reason lies in the nature of Bitcoin is endogenous, can not be denied - it is challenging traditional monetary nature. Interpretation of the long history of money to tell us, now popular with the central bank as the carrier monopoly currency system is not the best system. Back in the mid-20th century, the famous economist Hayek conceived monetary "non-state", creatively put forward the idea of ​​competitive currency system is called theorists of the 20th century's most ingenious idea theory . Although this theory has been stuck on paper, but "monetary non-state" theory to restore the original appearance of the currency, the currency clarified contaminated river, revolutionized the sanctity of the central banking system, as we describe the competitive alternative picture of the currency system.

As we all know, from the shells, stones, to copper, silver, gold and other metals, to banknotes, currency evolution of diverse forms so that people come to realize the nature of money - credit. The credit is essentially naked decoupling of gold as currency and further highlighted. What support monetary unimpeded? Is the national credit, the central bank system in supporting the currency you? Only the backing of state power, money order like this popular day? No! National credit, the central banking system, but is kept in the currency of the veil. Moreover, the centuries, the veil was accented with a colorful vibrant colors, thus confusing the world's eyes. As a result, the central bank issued currency monopoly practices seems to be God's decree as not to encroach on others. However, it is discerning Hayek, through the mists of history, only to see the shortcomings of the traditional monetary system, raised money "non-state" theory of conception. The Bitcoin practitioner inadvertently become competitive currency regime.

Bitcoin is still a long way to go

In fact, no matter what the currency, whether its functions properly and fully exercised, the key lies in two factors: First, the currency's stability; second is the "lender of last resort" role OK. Under the existing system of central banks to the national credit backed by the central bank to act as "lender of last resort" role seems very authoritative, but also very convenient. Interpretation of the central banking system seems to prove this point. However, precisely because of its authority too strong too bright, people ignored them missing. As for currencies, the missing subversive. Under such a system, but extremely difficult to maintain currency stability. Economic development, improving people's livelihood, such as the distribution of wealth is often constrained by bitter inflation. And the history of currency manipulation, hyperinflation of more frequent too numerous. This is the path of monetary Hayek attack "non-state" theory, but also a competitive foothold monetary system. Bitcoin challenge genes with potential tension existing monetary system, there is no doubt jeopardize the existing monetary system, which also can imagine drawn the short straw.

Carefully pondered, Bitcoin is easy to see their own shortcomings. Currently, its development is not perfect. The most obvious is that under bitcoins in circulation, the question "lender of last resort" How established has not been resolved. We can even suspect that this issue has not been taken into account the scope of its founder. The baby was born, did not know where the comfort zone. Such parents are reckless and irresponsible. However, this should not be a reason to kill the baby.

Bitcoin can solve the "lender of last resort," the absence of problems? The answer is yes. In theory, the solution to this problem is not dependent on external coercive power, economic strength and the amount of material wealth, the issuer, but whether constructed from the constraints of the issuer of the mechanism and thereby the foundation for market confidence. If Bitcoin compared to smartphones, then Apple and Samsung is the best currency trading activities led them to become the people hold and accept the object. And there are other potential competitors to force Apple, Samsung caution, and strive to gain the favor of the market for a long time. This is the most effective Hayek ideal monetary system.

I even imagine that, if allowed to survive bitcoin, supplemented by appropriate guidance and return pipe, Bitcoin has grown into a worldwide non-State of the currency of a better future, the challenge has grown into a global currency - U.S. dollars - a huge potential. As the world's currency, U.S. dollars in circulation provides a convenient national economic trade. However, the U.S. government is narrow, selfish, can not do justice to the interests of the countries involved in the currency issue. Since 2008, the Fed's monetary big drain, so that the spread of global inflation is the proof. The good news is that the world's next bitcoin pain killers are not many countries, some countries even recognize the legitimacy of Bitcoin. Perhaps this Bitcoin left to live on, so that we can still dream about the future of Bitcoin.