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Inflation and deflation in the economy are often situations in ordinary life, especially inflation, which usually means that the total amount of money increases and the currency depreciates. Pen? Interesting? Pavilion wWw. ｂiquge。 ｉｎfo

In layman's terms, it means that the state is running the money printing machine and printing money continuously, and as a result, the value of the currency will continue to decrease.

Printing money does not mean that the wealth in the society is increasing, the total amount of wealth is constant, what changes is only the distribution of wealth.

For example, the whole village has only 100 yuan, and you have 10 yuan in your hand and you can buy 10 catties of meat, but the village chief secretly prints a 100 yuan bill and circulates it. In this way, there are 200 yuan circulating in the village, but the total wealth in the village has not increased, which directly leads to the fact that the ten yuan in your hand can only buy five catties of meat.

That is, the money in your hands has depreciated and your purchasing power has decreased, in a sense, it is equivalent to the village chief snatching five catties of meat from you through special means.

But you may not be aware of it at all, or you may be aware of it, but you can't do anything about it. Because he didn't steal or rob, legally, it is impossible to define his crime at all, and even many people will find it very strange, thinking that you just don't have money, and instead of trying to make money, you blame the village chief for stealing your wealth.

It's a simple example, but it's extraordinary. Because you can see this situation all the time in life.

Lin Hong noticed this situation early on, and those bankers, financiers, or state managers could plunder other people's wealth in this invisible way.

It's really a bit of a "killing without seeing blood".

The most effective way to deal with such a situation is to not store money, but to convert it directly into physical storage, such as hard currency such as gold, which has a wide range of price fluctuations.

However, gold actually fluctuates, but it fluctuates a lot, and it is not a currency in circulation, so it is inconvenient to use.

Although Lin Hong is good at the field of computers. But it doesn't mean that he doesn't understand the laws of finance, it's just that he hasn't spent much time on it before.

He had been thinking about this question for a long time, and when he first met the former US Treasury Secretary who protested on Wall Street, some hazy ideas sprouted in his mind.

Later, after experiencing so many things, he also understood and thought deeply about it. Today, the idea has gradually become clear and mature.

He felt that in order to eradicate this phenomenon at its roots, the existing monetary system must be completely overturned.

Marx asserted that gold and silver are naturally money, and money is not naturally gold and silver. This is because precious metals such as gold and silver were the finest general equivalents of the time that could be precisely divided and agreed upon.

With the development of the times, paper money appeared.

Banknotes, unlike gold and silver, have no value in their own right. In order to be recognized by everyone, it must be endorsed by an institution like the state, that is, a guarantee. This guarantee is a form of credibility. is essential, otherwise the public will not recognize the value of paper money.

Once the state reneges on this trust and indiscriminately issues paper money, the paper money will quickly depreciate and eventually become a piece of waste paper.

There are many such examples in history, for example, when paper money first appeared, that is, when the paper money named "Jiaozi" appeared in China in the Song Dynasty, it was because the Northern Song Dynasty government issued paper money indiscriminately, breaking the allowable range of precious metals behind the 28% reserve ratio. Eventually, the further development of the monetary system in China was buried.

The history is similar, the government of the Republic of China in 1935, abandoned the silver standard, began to issue 1 yuan banknotes, and at the same time used cheap metal coinage. Eventually, a trip to a teahouse for tea appeared. It's a spectacle to pay with a suitcase of banknotes.

From the history of the production of money, it can be seen that the value of money is closely related to the political power of the country, and once there is a problem in the political regime, whether it is a change of power or economic and financial policies, the value of money will be most directly affected.

Lin Hong thought about it for a long time before. Trying to find an alternative to the existing monetary system ends up being - no!

Like Lin Hong, there are many other experts, scholars, financiers, and economists in the world...... And so on and so forth, countless elites are working hard to solve this problem, making all kinds of attempts.

Some people advocate a direct return to the gold standard that prevailed in the past, because gold is relatively stable, but its drawbacks also exist, otherwise it will not withdraw from the stage of history.

Some people advocate simply unifying the currency, such as the US dollar circulating around the world, and there will be no headache in the exchange rate. Obviously, though, it won't work. According to the European side, the topic of a unified currency has been discussed and studied.

Others, on the other hand, advocate the discarding of historical currencies and the creation of a new one. For example, the cypherpunkist group put forward the idea of directly replacing existing currencies with virtual currencies early on, and carried out a wide range of practices, but in the end, it was found that this problem still could not be solved, and these projects were eventually aborted.

Lin Hong is actually very optimistic about the cypherpunk's ideas, and he also believes that in order to completely solve these historical problems, the existing monetary system must be subverted, not inherited, but completely subverted!

The projects that the cypherpunkist organizations are carrying out now are still within the institutional framework of the existing currency, and the virtual currency they have designed is considered to be too big for the controllable factors to easily cause indiscriminate issuance, even easier than the existing currency, after all, the virtual currency is just data, and it can be realized with the movement of a keyboard and mouse.

Lin Hong heard the man's idea at a meeting held by the cypherpunkist organization and anticipated the outcome of their project.

However, it was these ideas of theirs that gave Lin Hong some inspiration.

At the time, these ideas were vague in his mind, but now that all this time had passed, his thoughts had gradually become clearer, and an idea that could have absolutely shocked the world began to take shape in his mind.

For a long time, Lin Hong's envelope has been "changing the world with technology".

At the beginning, he wrote the bit messenger, which completely changed the rules of hackers and the encrypted transmission of network information, caused a shock in the hacker circle, and changed the world of hackers.

Now, he's going to start writing another piece of software, or create something new, but it's the world that ordinary people will change!