The Godfather of Coin Speculation 3.27: What is the truth behind the legal digital currency?
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1. Twitter netizen @BTC_Archive broke the news that Norwegian business tycoon Øystein Stray Spetalen bought Bitcoin worth about $50 million. According to Spetalen, Bitcoin can serve as the base layer for a new financial architecture.
2. According to news from CoinDesk on March 27, Lee Ju-yeol, governor of the Bank of Korea, said that when the digital currency issued by the central bank is introduced, the demand for Bitcoin and other cryptocurrencies as a means of payment will decrease. He also said that the price of bitcoin and other crypto assets is highly volatile, and as such, their function as a means of payment or store of value has its limits.
3. According to u.today news, although Bitcoin has won the favor of many former critics, MasterCard CEO Ajay Banga is still not enthusiastic about cryptocurrencies. Banga recently told Fortune's Alan Murray that he's not really interested in bitcoin, preferring central bank digital currencies and stablecoins.
4. According to CoinTelegraph, Bitcoin (BTC) is still criticized for being too volatile, but an analyst from Bloomberg believes that instead, it is becoming a "safe haven" choice for investors. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that historical trends could see BTC rise eight-fold from current prices to reach $40 per BTC in 2021 as institutions demand to protect their assets from inflation and a weaker dollar. million-dollar peak.
5. According to Cryptonews, Indonesian Deputy Trade Minister Jerry Sambuaga announced that the department will launch a state-owned cryptocurrency exchange in the near future. This is part of an international trend, with more and more governments launching state-owned cryptocurrency exchanges to lure domestic traders away from the private sector. A report released by the Indonesian Blockchain Association revealed that there were more than 1.5 million cryptocurrency traders in the country in 2020, a strong increase of 2,263% since 2015.
6. According to the Financial Associated Press, today, the Digital Currency Research Institute of the People's Bank of China officially released the "Open Research Project on Legal Digital Currency Innovation (2021)". The Digital Currency Research Institute of the People's Bank of China leads and organizes the implementation of open research projects, aiming to build a collaborative innovation research system for legal digital currency and promote the vigorous development of the legal digital currency industry ecology. The open subject is based on "innovation, demonstration, and practicality", encourages collaborative innovation, gathers the strengths of all parties, and conducts open research on the theoretical system, cutting-edge technology, application, and functional innovation of digital renminbi. The Digital Currency Research Institute of the People's Bank of China has formulated management measures for open subjects, drafted reference directions for open subjects, and conducted strict and standardized management of subject applications, project establishment, assessment, and project completion.
The recent central bank digital currency research news has been developing, but many friends do not understand why each country develops its own digital currency. In fact, as early as the early stage, there were several theories. First of all, the current cryptocurrencies such as Bitcoin and Ethereum have always been hot. So if the country does not make its own digital currency to compete now, it will lead to a great weakening of the control over the currency; the second is to use digital currency instead of banknotes to save a lot of money printing costs.
The third reason is that everyone knows that digital currency payment can greatly improve security, but the godfather believes that these three statements are generally not enough to explain the root of the problem. The current bitcoins are not legal tender, and it is not ruled out that one day a country will start to ban bitcoin transactions. After banning bitcoin transactions, bitcoin will only become an investment product.
In addition, what the godfather wants to say is that the use of digital currency to save the cost of printing money may not necessarily be true, because in today's society, currency is actually a quota in essence. Then the printed banknotes are used for circulation in our daily life, and those so-called people issue extra money saying that the central bank really doesn't need to print so much money. In addition, the current deposit and withdrawal policy is very strict, and the mainstream payment method has already become the daily payment method in our country.
So if it is just for pure payment security, there is no need to make a special digital renminbi at all. So when it comes to this, there will be a problem, that is, what is the digital renminbi used for? In fact, what is hidden behind is cross-border payment, but many people know that after so many years, the system of cross-border payment for international trade is very mature. But in retrospect, after the Second World War, all countries in the world wanted to develop their economies well, and the method was to increase trade among countries.
However, the currencies of various countries have not been unified for a long time, and there is a very troublesome conversion before each checkout. In addition, banks in various countries have their own independent trading systems, and it is impossible to carry a large amount of cash for settlement every time a transaction is made. Because international trade had such a demand, a global currency settlement system, SWIFT, was established in Brussels in the 1970s. The later system gradually became the main payment system in the world, but the United States has the strongest voice in this system.
The reason is also very simple, that is, the United States, through its strong muscles at the time, required most oil-producing countries to only accept US dollars when selling oil. But what all countries face is that they need to buy oil, so when you want to buy oil, you need dollars in your hand. But if you want to exchange your own currency for US dollars, the SWIFT payment system cannot be bypassed, so 70% of the world's trade can only be settled in US dollars.
The solution is to establish a decentralized legal digital currency. Of course, this cannot be easily explained at once. But let's make an analogy, if we compare the SWIFT settlement system to a very huge server. When any country leaves this server, it will not be able to exchange data, but once there is a digital legal currency, it is like a U disk inserted on the server. Then everyone can exchange data with each other, even if you leave the server, you only need two or three U disks to exchange data directly.
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Bitcoin:
Bitcoin:
Operation suggestion:
The hourly line is trading sideways around 55,000. The price of the currency has been rising in shocks, and the trend is moving upward. At present, it has reached the resistance area of falling, and the market will repeat. In terms of moving averages, the moving averages of each period diverge upwards, the MACD diverges from the top, and the KDJ indicator shows a dead fork downward. There is a certain demand for the currency price to step back. In operation, it is recommended to look for a fall on rallies.
Operation suggestion:
