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Can bitcoin become a currency in circulation?

Time : 20/08/2021 Author : crjmdf Click : + -
        It is recognized by many people not only because it has the tamper proof characteristics of blockchain, but also because of its low transaction cost and the confidentiality of information between the buyer and the seller. First of all, the circulating currency is the legal currency of each country, which has the national legal endorsement, that is, if there is a problem with the currency, the country needs to bear the responsibility. But bitcoin does not have this feature, and major economies around the world will not let it have this feature. Moreover, the reason why bitcoin can be recognized by users in a short period of time is that its total amount is unchanged, which gives people the illusion that it can resist inflation. Why is it an illusion? This is because to measure whether the economy is inflating is not to study its monetary growth, but to take the GDP as the standard, and then see whether its currency price is falsely high, so as to judge whether it is inflating.
 
        For example, our current GDP growth is 10% year-on-year. If our consumption index, that is, CPI, has increased by 20% year-on-year, then we will have inflation. But if CPI is only 5%, it is the opposite, which proves that consumption power has not been released well. Consumption is expenditure, and expenditure is the driving force of the economy. Because one person's expenditure is another person's income, the more you spend, the more others earn. Thus forming a cycle of overall rise. Another reason is the most important. Everyone knows that bitcoin has a fixed total. Then you can imagine how you can effectively make it appreciate if you hold bitcoin?.
 
        It must be to reduce expenditure, because the money supply is fixed, and if there are more products in the market, the corresponding price of each product will be less, so this will only make people firmly hold on to their money, not to consume, but also unwilling to produce more. Everyone will suffer from deflation and the consumption power will continue to decline. Isn't this kind of economy a kind of regression?.
 
        
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