01
Satoshi Nakamoto and Bitcoin
Satoshi Nakamoto is said to have invented Bitcoin on November 1, 2008, and the coin rose from a few cents per coin to a maximum of $69,000 per coin.
If there is a person who has held since he appeared, then it will become the greatest investment guru in human history, and I am curious whether Satoshi Nakamoto himself has invested in Bitcoin.
The genius Musk later revealed Satoshi Nakamoto's old bottom, suggesting that the pen name Satoshi Nakamoto was just a collection of the first letters of the names of four famous electronics companies: "Sa" from South Korea's Samsung, "Toshi" from Japan's Toshiba, "Naka" from Japan's Nakamichi, and "Moto" from Motorola in the United States.
A Korean company, two Japanese companies, and an American company turned out to be the big boss behind the scenes.
There is also a Chinese - Zhao Changpeng, after studying, went to Canada, because of the establishment of an electronic money exchange - Binance, once became the richest Chinese.
I checked, there is a country on the earth - El Salvador in June 2021, passed the "El Salvador Bitcoin Law" bill where bitcoin becomes legal tender in that country, and on September 7, Bitcoin officially became the legal tender of El Salvador.
That is to say, if you have Bitcoin, you can buy a car and a house in El Salvador, and if the husband there has a request, Bitcoin can also be used as a gift to marry a daughter-in-law.
Virtual electronic money can completely solve the real problem.
02
Why the gold standard was abandoned
Satoshi Nakamoto's design of Bitcoin has a maximum number of 21 million to the top, which cannot be increased.
This raises the question of how currencies arise.
In order to improve efficiency in human society, there has been a large division of labor in society, and every social person only does one profession, and with the division of labor, the production efficiency has increased, but it has also led to the problem of how to trade goods.
Later, people found gold as a metal, made it into a currency by weight, and human society entered the gold standard.
The currency thing is magical, do you say it's useful? He was really useful. In a commercial society, how money can buy a variety of goods so that people can live a rich life. But you say he's useless? Sometimes it really doesn't work, for example, a rich man with a lot of gold coins is wandering on a desert island, and no amount of gold coins can be exchanged for food to fill the hunger.
The above example illustrates an essential problem, money is a tool for commodity exchange.
Why did humans end up using gold as a tool of exchange? That's because people find that the amount of gold mined each year is relatively constant, and no one can cheat.
Britain had some trouble with the gold standard. After the Industrial Revolution, Britain's production efficiency has increased significantly, human beings have also carried out the energy revolution, production efficiency has increased exponentially, the previous amount of gold is so much, the number of commodities has increased significantly, the increase in money can not keep up, the result is that money is becoming more and more valuable, to say: deflation.
Everyone took a look, originally with 100 gold coins can buy a house, after two years, 100 gold coins to buy two houses, people who take gold coins do not consume, anyway, in a few years 100 gold coins can buy a street.
This is not okay, the capitalists produce commodities in large quantities, the purpose is to make everyone consume, this is good, after deflation everyone is more reluctant to consume, they only want to take gold, then who buys the goods produced.
The era of gold as a currency did not adapt to the development of the times, and mankind entered the era of paper money. The quantity and value of paper money can increase, and as long as the number of banknotes and the number of commodities increase are equal, there will be no deflation in the gold standard. On the contrary, paper money is too easy to print, and inflation is rampant.
03
Bitcoin's endless cycle
Satoshi Nakamoto's invention of Bitcoin may have come from a dislike of paper money and a nostalgia for gold coins.
Have careful readers noticed that Bitcoin is back in the dead loop of gold coins, because human society is advancing every day in technology, and our production efficiency is improving every day. As a result, the number of commodities in human society will increase more and more. Gold can't solve the problem, can 21 million bitcoins solve it?
A few cents a bitcoin appreciates to 69,000, and if this law continues, bitcoin will only become a work of art, not a currency.
By the way, if Bitcoin becomes an electronic work of art, it becomes an NFT, which is another big topic, and I will write about it later when I have the opportunity.
end
Bitcoin has now fallen to $18,000 a coin, and I think it will be possible whether it will pick up or hit a new high in the future, or slowly return to zero.
One thing I am more clear about is that the characteristics of Bitcoin determine that Bitcoin must not become a human currency, which has nothing to do with technology, and is determined by the attributes of Bitcoin itself.
How can a finite currency cope with an unlimited exchange of goods?
The emergence of NFTs, or it is human beings who see the shortcomings of Bitcoin, so they make electronic files that cannot be copied and pasted from another direction, as to whether there is investment value, I think it depends on who makes NFT works.
Buffett said that even if the world's bitcoin 25 dollars packaged for him, he will not buy, perhaps a little early, bitcoin does not have the attributes of making money, but has the attributes of NFT.
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