Bitcoin is a virtual digital currency, the total amount is constant, there is no issuer, can not be tampered with, mathematics science endorsement, anyone can participate in and create, can be used to buy goods and exchange legal currency.

When a large number of legal bills are issued indiscriminately, there will be more trusted commodity currency to replace the paper money at that time. After all, the paper money itself has little value. If there is no strong credit endorsement, it is just a pile of worthless waste paper. In the previous precious metal era, it was necessary to mix some other metals to make bad money. In the paper money era, the government is more convenient. You just need to print it. People can't see what the quality of the paper is. In the history textbook of middle school, we learned that jiaozi was the earliest paper currency in the world. However, in the later period, due to frequent wars, jiaozi's indiscriminate issuance was serious, and the loss of credit came to an end. The government also issued paper currency in Yuan and Ming Dynasties. Because of serious inflation, people finally chose silver, and the paper currency could not circulate and exited the market.

Because the government monopolizes the issue of currency, they can constantly print money to meet their financial needs and buy anything they want. With the support of modern monetary theory, printing money has become a way to deal with the economic crisis. The state can force the use of legal money by means of violence. But if the legal currency devalues too fast, people will choose other means to store wealth. Hayek said that the harm of inflation is that the price structure is disturbed, which leads resources to invest in the wrong direction. These projects are profitable only when inflation accelerates, and it is this effect that leads to a serious wave of unemployment. What do you think of? Recently, the landlords in Shanghai frequently jump the price, and many people still choose to accept it. What is the reason for everyone's desperate purchase of real estate? Before Biden came to power, the US $1.9 trillion economic stimulus plan was announced. Coupled with the three rounds of economic stimulus in the trump period, the total scale exceeded US $5 trillion. Big inflation is inevitable.

(2021-4-2)