What is there before Bitcoin? (Currency before Bitcoin)

What is there before Bitcoin? This article will take you into the early knowledge and thinking of the cryptocurrency industry! Bitcoin was born in the wild west of 2013, but it’s no longer the newcomer in this industry……

Between 2009 and 2014, we can call it the era of blockchain technology. People said at that time, “Blockchain is the foundation of the next generation of the Internet.” Today, these technologies are referred to as Blockchain 2.0. “Blockchain 3.0” refers to a new, trustless application or protocol, while “Blockchain 1.0” is a decentralized consensus mechanism. Bitcoin had no value support from the beginning. Its appearance made it one of the tools used globally, even in a very new field. However, in early 2015, when Ethereum was launched, it was still just an experiment. It wasn’t until 2016 that Bitcoin gradually developed and experienced several big bull markets. Nevertheless, many people still consider Bitcoin as “digital gold” and believe that they have true intrinsic potential. Therefore, although Bitcoin was initially driven by a distributed ledger called “D”, it later evolved into a more efficient system to solve complex problems. Bitcoin, as an asset class, has attracted widespread attention but also brought many other issues. The first concern is scalability, followed by network effects and the growing demand for privacy. Lastly, there is the issue of lack of user experience. So many people believe that blockchain technology is not the best solution to solve all problems, and as more projects emerge, some developers are looking for technologies that can support specific applications like smart contracts. If Bitcoin can achieve such performance goals and successfully realize this vision, the entire market will become stronger and more prosperous, ultimately generating a huge economic impact. The development of Bitcoin is also based on this, as it is driven by computer code – the first fully open-source blockchain platform. In addition, Bitcoin itself is not as susceptible to 51% attacks or vulnerabilities as most people know. Its design concept is to create a secure network without sacrificing security, which is known as “anonymous transaction and mining”. In contrast, the advantage of Bitcoin lies in its ease of use and non-falsifiability. However, for those who want to innovate in different ways, it is difficult to achieve this:

1. It requires interaction through multiple intermediaries;
2. It must be verified through several exchanges. For example, the competition between Binance and Coinbase mainly relies on third-party custodial service providers, who often rely on central banks and then convert it into cash. Due to high transaction fees…

Currency before Bitcoin

Editor’s note: This article is from the Orange Book (ID: chengpishu), author: Chen Wenjun, authorized by the Daily Star to publish.

In the early stages before Bitcoin was born, currency was a means of trading and circulating value. However, people did not use it as a payment tool back then, but used it to store wealth, exchange goods and services. Until today, this kind of currency has been widely adopted. But different forms of currency and their respective uses have emerged in the past few years. These digital tokens all have similar functions: they can serve as accounting units or store funds; they can also be used for daily activities or commercial settlements; they can also provide other functions such as financial infrastructure. They are all currencies issued by a centralized organization and have their own characteristics: no centralization issue. And with the development of technology, they will have more economic impact and ultimately lead to significant price fluctuations – this is the reason we know the cryptocurrency market.

However, the situation has changed now. Firstly, many people believe that although most people currently believe in the possibility of cryptocurrencies soon replacing the traditional banking system, there are still some doubts about the future. In fact, despite some investors being skeptical about crypto assets and the underlying technology, there have also been opinions on this issue in the past few months. For example, according to a recent report, the price of Bitcoin is about $48,000, more than 40% lower than in June 2017, so this number may continue to decline.

Secondly, throughout history, any type of currency has its own characteristics. One of its main features is scarcity. In order to avoid the problem of being tied to fiat currencies, some countries have even created special legal systems to make it easier for governments to formulate new regulations to regulate the country’s economic and political affairs and operate legally and compliantly. For example, Salvadoran President Nayib Bukele said he hopes to have 25% of the identifiable national money supply. Additionally, US Treasury Secretary Janet Yellen said she is concerned that if new regulations are not put in place, the US dollar will lose control worldwide. Finally, Riksbank Governor Stefan Ingves told The New York Times, “There are illegal foreign currencies everywhere.”

At the same time, the International Monetary Fund said, “This is a disaster for exchange rates,” as it requires legislation to determine whether the exchange rates of different countries are reasonable and how to manage remittance costs effectively. “I recommend taking measures to ensure that everyone has access to stable and secure payment methods.” It also mentioned, “In the early years of this century, most of the world’s population was affected by inflation, so the world is experiencing a serious crisis.” Of course, solving this is also difficult. As mentioned above, if you want to change the status quo, you must establish a separate system…