Fiat Currency and Bitcoin: The True Meaning of Value

In today's economic environment, we often hear the saying that Bitcoin has no real value, and only fiat currency is truly valuable. However, when we delve into this view, we will find many questionable places. To give a simple example, the goods purchased with fiat currency are not always qualified and safe, which makes people reflect on the actual value of fiat currency.

Recently, a news about the excessive content of edible oil and Lao Gan Ma mineral oil has attracted widespread attention. Edible oil contains mineral kerosene, and the problem of excessive content of Lao Gan Ma mineral oil has shocked and angered consumers. The fact that the food purchased with our hard-earned fiat currency has such serious quality problems is undoubtedly a satire on the value of fiat currency.

From an economic point of view, the value of fiat currency is based on the credit of the government and the economic foundation of the country. However, in real life, whether the goods purchased with fiat currency are safe and qualified is another matter. The problem of excessive content of edible oil and Lao Gan Ma mineral oil is just the tip of the iceberg. Similar incidents occur from time to time, which not only reflects the lack of supervision, but also highlights the limitations of fiat currency in actual use.

In contrast, as a decentralized digital currency, the value of Bitcoin does not rely solely on the credit of a single institution or government. The value of Bitcoin comes from the technology behind it - blockchain, which is an open, transparent and tamper-proof distributed ledger technology. Every Bitcoin transaction can be tracked and verified, ensuring the transparency and security of the transaction.

Of course, Bitcoin is not perfect. Its price fluctuates greatly and its market risk is high, but this is precisely its characteristic as an emerging asset class. Over time, the value of Bitcoin has gradually been recognized and accepted by more people. More and more companies are beginning to accept Bitcoin payments, and even some countries are exploring how to incorporate Bitcoin into the mainstream economic system.

In the long run, legal tender and Bitcoin each have their own advantages and disadvantages. Legal tender has its stability and wide acceptance, while Bitcoin has the advantages of decentralization, transparency and security. When faced with problems such as excessive edible oil and Lao Gan Ma mineral oil, we must not only reflect on the actual value of legal tender, but also the value of the currency itself.