[Crisis of horse manure ]

First, tell a story that is often told.

Words in the 19th century, New York, London, the big cities is the main means of transportation "carriage", local tyrants has its own "private carriage," the dream silk go out can take "stagecoach", or "horse" luxury points. At that time, traffic in a big city needed hundreds of thousands of horses to maintain.Matthew: there's a problem, horse urine, horse shit... The whole city turned into a giant toilet. Horse urine is easy to dry. It's good. Horse dung is a big problem, especially when the horse dung is too much for the farmer. On a sunny day, the horse dung is in the dust. On rainy days, horse manure turns into slurry, accidentally splashed into... The acid is cool, unimaginable! Even in 1894, The Times predicted that London would be swamped by horse manure up to nine feet high. Later, in order to solve the problem of horse manure, the countries also held several international conferences, discussed and discussed, and finally the painful discovery: there is no solution to this problem!

This is the famous "horse manure crisis" in history.

As you all know, in the 20th century, the horse manure crisis was lifted naturally because of the invention of the automobile.

To tell the story, I would like to say that many problems do not need to be solved to make it disappear.

[Deflation]

It is a great invention to liberate people from the triviality of "exchange for things". But it has a fundamental question: how much money does an economy need? In theory, because money is used for trading, it is best to have as many transactions as you want. However, the economy is composed of numerous individual behaviors and is dynamic. It is not clear what each person wants to buy and what they will buy each day. The problem existed before the national endorsement, but no one bothered. Because the total amount of money is destined to be, how much gold and silver there are, and worry about it.

After the advent of the French currency, the issue of money was centered. The center, while using a series of tools, tried to find the most appropriate circulation, but it was never accurate. We all know that if the currency is much more expensive, it will be inflationary, and it will be deflationary if it gets less.So which is more harmful, inflation or deflation? It's obviously deflation, because when money is more and more valuable, people save money and they don't consume, and the economy is completely stagnant. Inflation is not good, but it can stimulate consumption. So, when this center issues money, it is as many as possible, it is too many to do, just to receive.

To avoid deflation, inflation is the solution.

[Ecological currency]

After the emergence of the digital currency, because the total is usually constant, it is denounced as a deflationary currency. But is it true?

The premise of this conclusion is that there will be only one or several digital currencies in the world. I used to think so, so I had a headache. But the recent spate of corporate "points", "passes" and "tokens" has inspired me: if there is always a new digital currency issue, will deflation be solved? On the other hand, the issuance mechanism of scrip can not be said to solve the deflation problem, but rather like "the car does not take a dump to solve the horse manure crisis", let the deflation disappear.

How?

Let's take a look at the specific reason for the deflation: economic development, to provide goods and services more and more, more and more people to buy goods and services, that is to say, money more and more application of the scene, or spend money more and more. But there is still so much money.

Ok, so now if every new application scenario comes up, issue a token, and what deflation is there! Because the money and spend the scene exact match, the synchronization increased! For example, when apple launched the iPhone X, it released a "fruit X", and all of the trading requirements related to fruit X were met by the X coin.

(in fact, it has a similar mechanism, but it is too idealistic, and it needs to be dominated by the whole world.）

The economy is actually made up of an ecosystem, an organization, a company, and a community. Each ecosystem can use its user as a node, form a blockchain network, and then issue tokens, and, of course, the easier way to do this is to distribute it on existing public links. The acquisition of tokens is determined by the contribution to ecology, just as bitcoin needs to be mined.From this point of view, digital currency is the natural ecological currency.When every ecology has its own token, and the new ecology is accompanied by the new token, the function of the fiat money is greatly weakened. The country - based legal system will be replaced by an ecologically-based digital currency system. Of course, the state is also an ecology, and can issue its own token, but it will not be the dominant position, just a competition in the market.

On the other hand, ecology can be vertical. Like etherlands, itself is a big ecology, every application on it is a small ecology, these small ecology also have its token. Small ecology may grow and grow, and grow new ecology and new tokens on it. In theory, this process can be nested infinitely, which gives the currency a new dimension. In the past, the relationship between money and currency was only horizontal, and now it can be vertical. The model corresponds to the monetary system in the future, we can imagine: horizontal, is composed of some big monetary base, the base currency corresponds to a large ecological, for example, USDT to mark the legal tender in connection with digital currency scene; BTC has marked the entire nascent digital currency ecology; ETH is a smart contract platform with its own potential. Vertically, in these base currencies, you can grow small currencies and match exactly the new application scenarios. , of course, this system is not fixed, a growth in the monetary base currency can be bigger and bigger, its application scenario, the horizontal can be more and more wide, vertical can be more and more deep, long enough volume, there will be plenty of money and its standard, it is a base currency.

[Data monetization]

You might say, well, in the future, it's not going to be a hassle. In fact, the world is not so much money now? Each country has its own legal currency. But we didn't find it troublesome to use the French currency. That's because we spend most of our time in the same country, and we don't always have to exchange French money for it. Similarly, the future of a digital currency is mostly used within its own ecological footprint, and the need for exchange is small. In some general scenarios, we can use base money. Even if want to change, digital currency exchange than fiat much more simple and quick, you can compare the "RMB/us dollar" and "currency exchange Wright coin" the two scenarios, the former time, also a lot of restrictions, while the latter is a matter of 1 second.

On the other hand, everything can be mapped to data and stored on the block chain. In this way, there is no essential difference between the currency and the object it is dealing with, and everyone is a bunch of data. Trading, you send me COINS, I send you "house", is the data on the block chain transfer behavior, at that time, don't want to say you sent to me is the currency, I send you the goods, it's not too much meaning. Therefore, the future development will be physical data, data monetization, or everything will be money, which can be called "pan-monetization".

Digital currency exchanges now rely on centralised exchanges, not to mention data interchange between blockchains. There will be excellent cross-chain agreements in the future, so that the tokens and data of each chain can flow freely. Of course, this guy will certainly carry his own token, and his tokens will undoubtedly be another base currency.

agoha