Recently, a piece of news has caused a stir in the cryptocurrency circle. ZFB is actually promoting cryptocurrency.
Considering the recent BTC breaking through 100,000 USD and CCTV’s report, is this a sign of spring coming?
At first, I thought someone was messing around with photoshopped images again, so I quickly opened ZFB to check, and indeed found such a chicken.
The introduction is indeed related to cryptocurrency. I have said before that when Bitcoin reaches $100,000, traditional media will definitely send this news to everyone’s mobile phone screen, but I didn’t expect it to be in this way. It really shows how awesome Jack Ma is. He never forgets ordinary people like us.
Now that Trump is about to take office, he is expected to vigorously promote cryptocurrencies in the United States. How should China, as the world's second largest economy, respond?
If the United States uses Bitcoin as a strategic reserve while selling off gold in large quantities, changing the dollar's peg to a gold standard, causing a sharp depreciation of gold, will the world's wealth once again be harvested by Americans who have control over Bitcoin?
After all, such a thing happened in the late Qing Dynasty. At that time, the Qing Dynasty used silver as its monetary standard, while Western countries had begun the gold standard.
So foreigners used a lot of silver to buy a lot of Chinese goods and gold. China was a big consumer of silver, but its national strength was too weak and it lacked understanding of the world's monetary standard.
As a result, the gold reserves became less and less, and the silver reserves became more and more. However, people did not know that silver was gradually becoming a common metal in the international market. In addition, the Europeans plundered a large amount of silver from the Americas, which made the price of silver lower and lower.
In 1850, the gold-silver exchange rate in Europe was between 1:15-20. At the end of the 19th century, this value reached over 30.
Foreign merchants brought large quantities of silver to China, exchanged them for gold, and took them to Europe to exchange for more silver, and then repeated this process over and over again. The profit from each cycle could reach 50-100%.
For example, foreign merchants could exchange 100 taels of silver for 10 taels of gold in China, and then exchange them for 150 taels of silver in Europe. When the Qing Dynasty realized this, it discovered that it had stockpiled a lot of silver.
To exaggerate a little, it was not much different from waste paper in the international market, and its purchasing power was far lower than that of gold. The wealth of the Qing government was thus looted.
So, what will happen many years later when Western and European countries use Bitcoin as a reserve and as a universal settlement currency for international trade, and gold and the US dollar are weakened?
Recently, CZ also talked about China's holdings of cryptocurrencies. He first said that China's cryptocurrency trading volume accounts for more than 30% of the global total.
He then said that if the United States can prevent China from having gold reserves (weakening gold's hard currency attributes is also a form of prevention), then it is inevitable that China will build up its own Bitcoin reserves.
You know, there are currently 109 countries in the world that have joined the Central Bank Digital Currency Alliance, and China is the number one player in this alliance. If China really starts buying a large amount of Bitcoin, what will that mean?
It is very likely that China has been secretly hoarding large amounts of Bitcoin and will suddenly announce the news when the time is right.
In addition, as more and more countries join, a world financial system dominated by G7 countries will eventually collapse, and it will be replaced by "Bitcoin G7".
What is the Bitcoin G7?
Simply put, developed countries led by the United States will unite to use Bitcoin to replace the US dollar as the world's reserve currency in order to maintain the international financial order.
Does it sound familiar?
That’s right, this is actually the idea of Libra that Zuckerberg proposed in 2018. However, Trump knew very little about Bitcoin at the time and rejected it. Now, the term “Bitcoin G7” has been brought up again.
Here is a brief introduction to Libra. You must know this in the cryptocurrency circle.
Libra is a virtual cryptocurrency launched by Facebook. Libra is an encrypted digital currency that does not pursue a stable exchange rate against the US dollar, but pursues relatively stable actual purchasing power.
Libra, a cryptocurrency initially collateralized by a basket of low-volatility assets denominated in four fiat currencies: the U.S. dollar, the British pound, the euro, and the Japanese yen.
Libra is not issued on Ethereum, and its blockchain technology is not based on Ethereum. The Libra project has its own blockchain technology and aims to establish a global payment system.
The Libra blockchain was built from scratch, and Facebook's Libra cryptocurrency project is supported by seven well-known companies including Visa, MasterCard, and Paypal.
Judging from platform advantages, popularity advantages and stability alone, Libra has surpassed 95% of blockchain startups in the industry.
Compared with other cryptocurrencies, Libra can be said to be born with a silver spoon in its mouth. What Facebook is leading the way in doing may be more than just a new digital currency.
The Libra white paper shows that Libra aims to build a comprehensive platform of decentralized blockchain, low-volatility cryptocurrency and smart contracts.
But in the end, it was still difficult to give birth and died before it was released.
Decentralized things, it would be best if everything is decentralized, just like the Internet. Once it is created, no one can control it or stop it unless the whole world loses power. Only BTC has achieved this.
So BTC is the only one, the others are not.
Once Bitcoin G7 is developed and used by Western countries, countries without Bitcoin reserves will be harvested once again. The old currency reserves accumulated through decades of hard work will continue to depreciate as the price of Bitcoin continues to rise, and they will become the lambs to be slaughtered.
Mr. Lu Xun said that people cannot always keep their heads down to work, but also need to look up and see the road and the trends.
Why is BTC so powerful?
Because BTC is not only an investment, but also a store of value and freedom. No one can freeze your wealth.
It is certain that you can control it at any time. You can carry it with you and fly freely. This is everyone's utopian aspiration, and this is the greatness of Satoshi Nakamoto.
Only BTC can do it, so it is unique.
