Chapter 535 World Problems

Economic inflation and deflation are common scenarios in daily life, especially inflation, which usually means an increase in the total amount of money and the depreciation of the currency.

To put it plainly, the state is driving a money printing machine and constantly printing money. As a result, the value of money will continue to decrease.

Printing money does not mean that the wealth in society is increasing, the total amount of wealth remains unchanged, and it is only the distribution of wealth.

For example, the whole village was always only 100 yuan, and you had ten yuan in your hand, and you could buy ten catties of meat. As a result, the village head secretly printed a 100-yuan note by himself and circulated it. In this way, there are 200 yuan in circulation in the village, but the total amount of wealth in the village has not increased, which directly leads to the ten yuan in your hand, you can only buy five catties of meat.

That is to say, the money in your hand has depreciated and your purchasing power has declined. In a sense, it is equivalent to the village head stealing five catties of meat from you by special means.

But you may not notice it at all, or you are aware of it, but there is nothing you can do with him. Because he didn't steal or rob, legally, it is impossible to define his crime at all. Many people will even find it strange and think that it's just that you don't have money. If you don't work hard to make money, blame the village head for stealing your wealth.

This is just a simple example, but its meaning is extraordinary. Because this situation can often be seen in life.

Lin Hong noticed this situation very early. Those bankers, financiers or state managers can plunder the wealth of others in this invisible way.

It's really a little "killing without blood".

The most effective way to deal with such a situation is not to store money and directly convert it into physical storage, such as hard currency such as gold with small price fluctuations.

However, gold will actually fluctuate, but the fluctuation is very small, and it is not a circulating currency, which is inconvenient to use.

Although Lin Hong is good at the computer field. But it doesn't mean that he doesn't understand the laws of finance, but he didn't spend much time on it before.

He has been thinking about this problem for a long time. As early as when he met the former U.S. Treasury Secretary who protested on Wall Street, some hazy ideas came to his mind.

Later, after experiencing so many things, he also had a targeted understanding and thought deeply. Today, this idea has gradually become clear and mature.

He feels that in order to eliminate this phenomenon from the root, it is necessary to completely subvert the existing monetary system.

Marx asserted that gold and silver are naturally money, and money is not gold and silver. This is because precious metals such as gold and silver were the best general equivalents that could be accurately divided and recognized by consensus in that era.

With the development of the times, paper money has emerged.

Unlike gold and silver, banknotes have no value in themselves. If you want to be recognized by everyone, you must have an agency like the state to endorse it, that is, as a guarantee. This kind of guarantee is a kind of credibility. It is essential, otherwise the public will not recognize the value of paper money.

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

There are many such examples in history. For example, when banknotes first appeared, that is, when the banknote named "Jiaozi" in the Song Dynasty appeared in China, it was because the Northern Song government unrestrainedly issued banknotes indiscriminately, which defeated the allowable range of precious metals behind the 28% reserve ratio. Finally, it ruined the further development of the monetary system in China.

And the history is similar. In 1935, the government of the Republic of China gave up the silver standard and began to issue 1 yuan banknotes, while using cheap metal coins. Finally, he went to the teahouse to drink tea. The spectacle of paying with a suitcase of paper money.

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

Lin Hong thought about it for a long time. If you want to find an alternative from the existing monetary system, the end result is - no!

Like Lin Hong, there are many other experts, scholars, financiers, economists... and so on in the world. Countless elites are working hard to solve this problem and making various attempts.

Some people advocate the direct restoration of the previously popular gold standard, because gold is relatively stable, but its drawbacks also exist, otherwise it will not withdraw from the historical stage.

Some people advocate a direct unification of currency, such as the circulation of U.S. dollars around the world, so there is no troublesome exchange rate problem. But obviously, this won't work. It is said that some people in Europe have begun to discuss and study the issue of unified currency.

Some of them advocate directly abandoning the currencies of history and creating a new currency. For example, the cryptopunkist organization put forward the idea of directly replacing the existing currency with virtual currency for a long time, and carried out a small-scale practice, but in the end, it was found that it still could not solve the problem, and these projects were eventually aborted.

Lin Hong is actually very optimistic about the ideas of crypto punkists. He also believes that in order to completely solve these historical problems, we must subvert the existing monetary system, not inheritance, but complete subversion!

The projects carried out by the cryptopunkist organization are always within the institutional framework of the existing currency. The virtual currency they designed believes that the controllable factors are too large to cause abuse, and it is even easier than the existing currency. After all, virtual currency is just data, moving the keyboard and mouse, It can be achieved.

At the meeting held by the cryptopunkist organization, Lin Hong heard that man's idea at that time and expected the result of their project.

However, it was their ideas that gave Lin Hong some inspiration.

At that time, these inspirations were still vague in his mind, but now that such a long time has passed, his thoughts have gradually become clear. An idea that can be said to absolutely shock the world began to take shape in his mind.

The creed of Lin Hong's envelope has always been to "change the world with technology".

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

And now, he will start to write another software, or create a new thing that will change the world of ordinary people!