RECAP: It was 2013, and several young people, the youngest 24 years old, wrote a book called Bitcoin. They invited me to write the foreword. I readily agreed. This is not only because I have a long-standing interest in monetary and financial issues, and because I love creative and innovative youth, but also because I have previously followed Bitcoin, appreciated the philosophy, philosophy and design behind it, and foresaw that the idealism, scientific spirit and technological innovation contained in Bitcoin would show alternative hope.
Nearly five years ago, the story of "Bitcoin" has been interpreted constantly, people support it, enthusiastic, questioning, suppressing, the tide is rising and falling, now, have to admit: "Bitcoin" has become "climate", quite a "light boat has passed ten thousand heavy mountains" mood. In my case, I am more interested in the philosophy, ideological support, scientific principles and vitality of "Bitcoin" and whether it will stand the test of time and different economic and cultural environments.
Recently, I've had many friends wishing to learn about Bitcoin and blockchain, and I always recommend the book Bitcoin to them. And when I inadvertently re-read the preface I wrote, I suddenly realized that my initial knowledge and feelings about this new thing stood up, and it was quite gratifying. For example, it is worth mentioning these points again today.
On the historical positioning of "Bitcoin": "Bitcoin: an experiment in foreshadowing future monetary forms and systems".
(a) On the function of "bitcoin": in the context of the 2008 financial crisis and the threat of a financial crisis with traditional currencies in the process, bitcoin offers a new way of thinking and an alternative to overcome the inherent flaws of fiat money.
On the tension of "Bitcoin": "Bitcoin enables the integration of the virtual and real worlds, and the rapid formation of Bitcoin 'fields' that transcend geographic and industrial sectors".
On the value characteristics of "Bitcoin": "Bitcoin functions as a highly liquid asset and is currently the fastest appreciating asset in the world".
On the price potential of "Bitcoin": "If the price of Bitcoin rises to $20,000 a piece, Bitcoin is close to 1 per cent of the size of the world economy".
On the cost trend of "Bitcoin": "The more people mining to keep the data blocks generated at a uniform rate, the more difficult it is to mine, and the cost tends to keep rising".
Implementation of the blockchain principle for "Bitcoin": a "hologram ledger" that "includes all historical records".
On the significance of Bitcoin's "open source technology": "The open source nature of Bitcoin dictates that it will not be the only currency of the world in the future".
Today, Bitcoin is in its ninth year of existence. During this period, a number of new phenomena of interest have arisen as a result of "bitcoin".
First, the "Bitcoin" gene has and continues to reproduce more and more crypto-digital currencies, forming "clusters" of crypto-digital currencies. Among them, crypto-digital currencies can be divided into "fiat cryptocurrencies" and "non-fiat cryptocurrencies".
(b) Second, the accelerated formation of a global ecosystem and industry chain for crypto-digital currencies and the beginning of the transformation of traditional wealth into digital wealth.
Third, the "bitcoin" backing blockchain technology The growing acceptance and application has stimulated the development and upgrading of related "hardware" and "software". Meanwhile. blockchain technology (a) The deep-rooted concept of "decentralization", in particular, has spread like never before, creating an all-encompassing "blockchain revolution" involving governments, businesses, social organizations and individuals.
Fourth, worldwide, new social groups have emerged that are dependent on the "cryptocurrency" (crypto-digital currency) and "chain" (blockchain) communities.
Of course, the challenges facing "Bitcoin" and crypto-digital currencies are serious, including: the "fork" pressure of "Bitcoin"; among the thousands of digital currencies, there are different kinds of "bad coins", but thankfully, because of the checks and balances of blockchain technology, it is difficult for the traditional "bad money to expel good money" to happen; the ICOs that emerged in 2017 have a significant lack of regulation. In some countries, stringent regulatory measures had to be taken. Therefore, there are still controversies about "Bitcoin" from the conceptual to the technical level, and the "different views" will continue for a long time.
While maintaining an ongoing interest in "Bitcoin", I have also followed and learned about other cryptocurrencies, blockchain, and related advances in artificial intelligence, and have thought about the relationship between the three and their impact on the economy and society in general, and have written and given several talks and introduced the topic to the classroom. It is worth mentioning that I had the opportunity to get close to the trendsetters in the "cryptocurrency" and "chain" circles, and witnessed how the highly skilled and the "lowly", the various "elites" and the "grassroots", fused their wisdom together to create a new form of wealth in three to five years. It is an experience to be recognized and cherished. Future economic history will record and interpret this moment and phase.
For years, people have talked about "financial innovation" and "FinTech", but there has been more "stagnation" than actual progress. At present, the need to maintain monetary and financial security and protect the interests of people's monetary assets while promoting "financial innovation" and "FinTech" is a "windfall" for the country, government, enterprises and individuals, and requires a historical and global perspective for all parties to control the timing.
February 4, 2018