For a long time, I found a lot of people will bitcoin have a skeptical attitude, still have to put bitcoin and tulip bubble in. Of course, bitcoin believers are not so think about this question. There are too many arguments and arguments that bitcoin is not a huge bubble There was no parallel in history.
The holder, bitcoin most practical benefits may be this is a type of currency deflation. You may encounter in real life because of excess and the formation of dollar devaluation. But bitcoin will not happen, the design mechanism of bitcoin can guarantee never over. As everyone knows, we now use the money, more by the government’s credit guarantee, so the government will issue too much money, loss is a serious form of credit and inflation. But in the design of this hearing, bitcoin does not appear the situation of spamming.
In October 31, 2008, a man named in the Cong in cryptography forum mail group posted an article entitled (“bitcoin: a point-to-point electronic cash system”) of the paper demonstrates a central bank payment system to break the monopoly of the point to the center of the. This is bitcoin’s white paper, from this day, legend of bitcoin prelude.
Bitcoin presents 3 characteristics: first, block chain characteristics, anonymous, cross-border, decentralized, trading volume and other characteristics of the convenience of the transaction based on the value embodied in the black market, low cost and so on cross-border transactions; second, deflation and unable to adjust the circulation of money, easy to store, stimulate the psychological value; third that has the typical characteristics of precious metals such as gold.
Why bitcoin will be called “digital gold”, the historical origin of this name now Wucongkaozheng, but bitcoin indeed showed general characteristics such as gold. For example, gold has very good ductility, chemical stability not easy to be oxidized, can be kept for a long time feature.
Bitcoin as a digital gold, with gold incomparable advantages:
1. gold is not easy to counterfeit, so each transaction need to verify the purity and authenticity of true and false; bitcoin relies on cryptography and block chain technology, ensure receipt of bitcoin bitcoin is true.
2. gold is not easy to carry, so the risk of large transactions is very high; and the nature of bitcoin is a group of encrypted data, the transmission efficiency is high.
3. physical gold is difficult to split to integer conversion. But bitcoin is unlimited data segmentation.
Save only 4. physical storage of gold, and bitcoin as data need only cold wallet, safe and convenient storage.
Of course, compared to gold, many people criticized at present is mainly compared to gold, bitcoin mobility is still relatively poor. In addition, gold as a more than million years of big IP, the brand is much more than the current consensus of bitcoin. For most investors, gold is still a good choice of hedging.
In addition, for many of its defenders, they often come up with an important point of view that gold coins, in addition to the recognized value and practical function, stored value, from the computer circuit board applied to decorative jewelry and gold teeth replacement are required. This is the actual function to create the circulation of gold. It is the circulation, to ensure the value of gold is a universal recognition.
On this last point, I think it was more difficult to comment on the reason is now bitcoin has lightning network, lightning and existence of network is to solve the bitcoin in addition to stored value circulation outside demand, so at this point, there seems to be no much worse than gold.
But for me personally, I have almost no amount of bitcoin. The reason for this is not absolutely I personally do not see bitcoin, but my decision of investment properties. It’s like many traditional investors feel that investment bitcoin is a very aggressive behavior, but in the world currency circle you think the investment bitcoin is the most conservative behavior. The margin of safety is not the same, leads to feeling deviation on the product attributes of investment.
Compared with the traditional investment market, my personal investment decision is always advanced and aggressive. If I had to make a choice in gold, real estate and stock, I will choose the stock, because gold is a kind of investment means a relatively conservative and stable, while the real estate is not a particularly good asset liquidity. On the other hand, the gold for a glance in the past can be exciting metal does not seem entirely can let me have the desire, investment frontier science and technology in the future to change the world seemed to be able to touch me. That is why I will eventually enter the industry chain block.
However, I am especially interested in why gold has become the perfect embodiment of human wealth? The silver in the past 5000 years has played an important role in wealth performance. We often hear the emperor said, huangjinwanliang 102000 silver plus million mu of farmland. This becomes our inner source of wealth for the gold and silver, and property. What is the reason for shaping the whole human consensus.
Prehistoric civilization – gold origin
Golden worship, refers to the human gold color crazy. In the human eye, the most important only five colors: red, yellow, green, black, white. Yellow and green is human vision in chromatographic center, it is the result of evolution, because the human food source that is green, plants, and most mature crop colors are yellow. So yellow gives people a feeling of happiness, comfort and satisfaction.
The worship of golden sun related. The ancient period of human to the sun filled with fanatical worship in the ancient view, only the sun can bring light. And the gold and the sun exudes a mysterious light, as the sun is the human incarnation, holds the gold have the sun, you also have a supreme power and wealth. So the ancient kings are wearing yellow robe, with distinguished gold to decorate their house, hope like the sun shines the earth, dominate the world.
The earliest worship of the history of gold is not due to the Chinese, but with the Red Sea coast of ancient Semitic people, this is a nationality of worship of the sun. The concept comes from the Bible, not a single nation, but there is a group of the National Association of native attribute. With the relocation of the Sumerians, the formation of the ancient Egyptians, Babylonians, Canaanites, Hebrew, Phoenician and so on, the concept of gold worship also entered the ancient Mesopotamia, Egypt, Greece Peninsula peninsula.
Chemical symbol Au gold, originated in Rome in the myth of the “Aurora” ourela (Aurora), gold is the first prehistoric metal processed, as early as 6200 years ago in the stone age, primitive man began processing Bulgaria’s gold. The Sumerian civilization is the earliest culture of gold, so far the archaeological discovery of the oldest gold jewelry is found in ancient Mesopotamia in Iraq today, more than 5300 years of history. The ancient Egyptians were the first time in human history, the formation of gold civilization. As early as 4000 years ago in ancient Egypt have gold map, above accurately marked the Nile River and the Red Sea between the gold position. The earliest use of the golden place gave birth to the world’s earliest civilization, the earliest found a lot of gold mineral place gave birth to the world’s earliest ancient civilization.
In ancient Egypt, people are more likely to use gold as decoration and worship to the gods gift, has not formed the real currency. Until 700 years ago, Asia Minor has been made some gold and silver alloy coins, known as amber gold. Then, in about 50 BC, the Western Empire of Rome issued a Anreus gold, gold in the portrait is engraved on the Kaiser earth.
The father of Western history of Herodotus “history”, began in 700 BC, the kingdom of asia. Wrote in the “history” in Asia: adjacent to Phrygia, therefore, Asia’s history, largely thanks to the buck Toulouse river full of gold, gold shine. It is in the “history” was first mentioned in “Asia is the first people we know and use the national currency of gold and silver casting”.
So what exactly is the ancient Egyptian defeat? The first cast silver currency people defeated the first use of the national circulation of gold and silver. Ancient Egypt from 700 BC to thirty BC was constantly Asians, Persians, Greeks and Romans conquered the. In particular, in 671 BC, the occupied capital of Memphis Egypt, and ransacked the temple of Thebes; in 653 BC, King Sutter I, with the help of the Celtics phsar Greek mercenaries regain dominance from Egypt, Egypt began in Greece; in 525 BC, the Persian Empire captured psamtik III, the ancient Egypt was incorporated into Persia, become a part of the Sixth District Governor, this time known as Egypt’s twenty-seventh dynasty.
In 402 BC, the Egyptians ruled Egypt right back. 380 BC to 343 years, the last generation of native Egyptian Dynasty, that is the last of the Egyptians own dynasty, thirtieth Dynasty of egypt. In 343 BC, the Persians ruled Egypt again, this time is called the thirty-first dynasty. From then on the true meaning of the ancient Egyptians in Egypt have perished.
In 332 BC, the Persians will surrender to the emperor Alexander of egypt. When Emperor Alexander died in an expedition on the way, then governor of Egypt, the Greeks Ptolemy modeled the Pharaoh of Egypt and established the Ptolemy dynasty mode (Ptolemy rulers are Greeks), although the Ptolemy Dynasty was a Greek rule, but basically follows a series of institutional culture and the era of ancient egypt. In the river for 400 years, why ancient Egyptian culture still exists is because no matter who occupied Egypt is a continuation of the Pharaoh system. The highly centralized autocratic system did not produce the circulation for the formation of gold and silver money.
In Rome after the strong, the Ptolemy dynasty became the protectorate of the Republic of Rome. Until 30 BC, David Wu Tim defeated Mark Anthony in a sea battle, kill Cleopatra VII of Egypt Cleo Patra, officially became a province of ancient Rome. From ancient Egypt disappeared completely.
Here we found a very interesting phenomenon. No form of ancient gold and silver currency empire was formed gold and silver monetization of the ancient empire defeated, but gold and silver form currency empire finally defeated the general circulation of the Empire to gold and silver. Only in the gold decoration value of ancient Egypt, the core system is a system that is Pharaoh, Pharaoh highly centralized autocratic system. Pharaoh is the supreme representative of the nation, military, political and economic control, law, right. The army by his master, the officials appointed by him, the production of products from the country controlled by him, he also asked the subjects of distribution, pay taxes and labor, is absolute centralization.
No monetary demand of Pharaoh had no means of production system, and the distribution of the product demand, so there is no need for monetization of gold. But gold finally let the ancient Rome Empire has become the final winner, why?
Asian civilization, the use of the currency is cast by gold and silver amber gold, and not really let people have a “golden” feel the money. Although the king all the production of goods, but still failed to impress the people of large-scale circulation amber gold. Only to the ancient Rome Empire when the world’s first gold coin, people really accepted the money, thus forming a large scale circulation.
Why was the Asian civilization used AMBER GOLD instead of gold and silver coins? Because the king is the essence of Asia still want to exercise the Pharaoh system, as a representation of God become the highest embodiment of centralized empire, only hope that gold and silver as money and don’t want the money circulation mass storage. Unfortunately, the gods of gold and silver was eventually formed a large-scale currency fell down, the altar.
The decline of ancient Rome empire under inflation
The ancient Rome Empire created a glorious history of civilization, the fading often marvel. From the historical point of view, the ancient Rome’s political crisis, economic crisis, social crisis and military crisis stems from the so-called “golden age” period. Revel in the flourishing in feelings of the Romans, public welfare project, high level, and the war continued, they need to finance tax support. At that time, the economic development level is not enough to support the rapid growth of the city and the huge public spending. The Rome government had control of economic power, so often take devalue way to alleviate the crisis. This is a dangerous way, make the crisis continue to accumulate, become an important cause of the decline of Rome.
“Open” history of the decline and fall of the Empire of Rome, see Edward Gibbon writing the glory of Rome, and the decline of deep reflection of the Empire, it’s so easy to fall. Speaking of the decline of the Empire of Rome, it is often attributed to the emperor’s militaristic, the battle around; aristocratic, corrupt and even lapped in luxury; merchant price gouging, disturb the market.
These are gradually eroding the glory of ancient Rome, make it escape the fate of extinction, but the decline of the Empire of ancient Rome, a very important reason, but few people know. It is inflation, the ancient Rome empire fell into the abyss of collapse.
Ancient Rome not only use paper money, gold and silver coins. Ancient Rome currency an kapugen gold Dinar (aureus), silver silver (denarius) and copper (as) as three. The gold is mainly dedicated to homecoming or other important moments of commemorative coins, silver coins in circulation circulation rarely, most widely. So the ancient Rome empire is actually a “silver” currency.
In 59 BC, Caesar first from the Senate hands made of gold and silver coins manufacturing power, and the establishment of a national institution as the ancient coinage, consul of Rome. In 50 BC, Caesar began issuing coins “Ann Rivers”, Caesar also had a fixed exchange rate of gold and silver currency, unified the various provinces of the local currency, effectively promoted the economic development of Rome. The gold purity is high, stable currency to the Empire of Rome commercial prosperity in all walks of life have been greatly developed. From 50 B.C. to 50 A.D., the Empire of Rome’s economic and military power in the Golden State, the money can not be stable.
Since then, Rome Imperial Emperor Augustus (Octavius) has established more perfect monetary system. Roma Square, the temple of Jupiter is not only a religious center, but also plays a role in the central clearing bank, the Rome monetary credit system is established in the great temple gold reserves. Augustus after reunification, one of the major decisions he made was established in Rome city as the center of the Empire of Rome monetary settlement system in Rome, vaults of gold as a reserve. Augustus believes that the coin credit lies in the unity of currency value and the actual value of the stick makes enough money. Until the period of Nero, the silver material from the silver containing 92% alloy silver rate adjustment. But for the study of the history of Rome the Japanese writers Shiono seven students believe that Nero was made of silver depreciation is mainly adopted in order to cope with the economic overheating monetary easing measures.
Why is the economic overheating? Because all of the money to expand the Empire of ancient Rome, this is to “grab” started, of course, more difficult exceptions. The expansion will fight, so huge military expenditure has become a heavy burden for the imperial government; plus the new province management requires administrative expenses, the nobility also lead a gay life a lot of money, and the emperor, in order to win over the people, often let them eat two free lunch. Government spending more and more huge, more and more flat pocket. Then, the imperial government naturally embarked on the creation of money road.
Especially the welfare of citizens. Ancient Rome has long established a republic, in addition to the heads of state (sometimes more than one person), Rome citizens and nobles in the national management plays an important role in. Under this system, in order to voters, Rome is not looking for the perfect financial system, but directly to the public welfare, low-cost or free distribution of wheat, in order to protect the poor living in the capital Rome citizens.
In 123 BC, when the Tribune of the Gracchi in brother Gaius pioneered the “law” provisions of the wheat, all in the capital of the people of Rome low selling the wheat. It lasted for 150 years, and gradually expand the scope of welfare, standards gradually improved, as the Empire economic strength also gradually spread to the local city and the province, so in the vast empire of Rome hunger caused by collective death events never happened.
However, the conflict between Rome’s economic base and upper political construction, the high welfare policy has produced a series of negative effects. In Caesar’s reign, the Senate sent a small poor support for Cato, the abolition of price rationing restrictions; and his enemies, the tribunes Claudian will be changed to low price rationing, free rationing. Caesar during the reign of the city of Rome has more than 320 thousand people from the national free food supply. Although Caesar later reduced the population distribution, but there are still 150 thousand people to receive free food.
The free distribution of food policy encourages more farmers leave the land, to the city of Rome, which makes the agricultural tax reduction. To supply Rome city wheat, also need to establish a granary, road port, increase public servants, gap is more and more daily expenses of the Empire of Rome. Later, as the fiscal costs of solving wheat supply, the Rome government began to resort to currency devaluation, inflation. The Rome government had financial problems left the root cause, with the passage of time, increasing shortcomings. Currency devaluation and inflation in Rome in the history of a long time continues, inflation and inflation expectations engulfed Rome light.
No money, the imperial government certainly can not rely on printing money to overissue currency, but it has its way of reducing the fineness of gold and silver coins. In order to make up for the deficit, in the year 117, the Emperor Trajan had to be the silver content in silver Dinar, Augustus from the era of close to 100%, down to 85%, the currency devaluation rate of up to ten percent, which is equivalent to the cash holdings of the whole empire population imposed the same proportion of implicit tax money. Since then, Rome silver devaluation.
In 150 ad, the Empire of Rome gold content is only equivalent to Caesar era thousand two, to the year 300, is one of the only sixty million points. The imperial government with less gold, casting out more and more money, money is worth less, in about the same period, the price of wheat rations people missing for up to two hundred times.
In decline, rulers of the stimulus policy seems to be only the immediate, regardless of long-term development. In the year 301, in the face of hyperinflation and poor riots, Emperor Dacre of Rome first issued the famous “highest price law”, the implementation of price control out of the list of items in all provinces within the scope of the implementation of administrative control of price.
When the archaeologists found the price list, detailed above a government set price: 1000 kinds of goods, goods and services to the price and wage. The price is higher than the prescribed price, are punished by death. The price control set is far lower than the fair market value, many farmers and manufacturers will lose sales incentive. Considering this point, Dacre is still the first act provisions, once found hoarding goods, will be severely punished, the goods will be confiscated, hoarders will be put to death. This decree was to suppress inflation, but brought more bad consequences.
The price control on the market no goods to sell, more and more trade to the object, the free market is paralyzed and lost circulation value of gold and silver. This time a man named Lark Tanti Lucius (Lactanius) of the Romans so the description of Dacre: “he first determined to control all the price for the sale of goods. Not worth mentioning because people blood flow; people don’t want to bring more material supply to the market, because they can not get a reasonable price for themselves, which leads to lack of so many, so many people died, and eventually, the law has been shelved.”
On the destruction of ancient Rome Empire, there is a critical turning point. That is the Constantin Thi period (AD 306 -337 years in Rome) abandoned the traditional “silver” into “gold standard”. It can be said that Constantin successfully established a strong currency for currency stability critical, also laid the foundation for the later European gold standard. However, Constantin’s reform in Rome silver dollar devaluation in the background, as a result of increased polarization of the consequences.
At that time, public servants receive salary is stable value of gold, while ordinary people get paid is devalued silver or copper. In the payment of taxes, the use of gold is required, and the exchange rate of gold than silver and copper coins for the laissez faire “change system”. The gold standard plundered the wealth of society, so that people own gold coins become rich, especially the emperor became one of the richest men, but no official people increasingly poor. This measure is equal to let people for the country’s currency bill.
A series of policies in fourth Century Rome’s direct impact on the society as the backbone of the middle class before, which is reduced to the brink of collapse. At the same time, as the war continued, barren land, sharp decline in productivity, economic stagnation and inflation exist at the same time, the “stagflation of the ancient Rome empire”. Economic strength led to a decline in population decline. The legend of second Century, Rome city has 1 million 500 thousand people. At the beginning of the fourth Century, the population has been reduced by half, by the end of fourth Century, only about 300 thousand people, returned to the level of 500 years ago.
The Byzantine Empire – rampant counterfeit money caused by the crash
Most of the time, the trajectory of history like dominoes, money is making these dominoes engineer. At the same time, the first domino push is hands by it personally.
After Constantin ascended the throne, in order to keep the East Rome Empire, conducted a series of reforms, finally abolished the four emperor rule, re unification of the Empire of Rome, until he capital of Constantinople, the Rome regime is finally saved down. In the year 378, but good times don’t last long, the battle of Fort Hadrian makes the Rome empire was One divides into two. again. In A.D. 526, Rome emperor Justin died, his nephew, a man named Char J Martin Ni (here later namesake is refers to Char J Martin Ni I) who ascended the throne.
Char J Martin Ni inherited the Rome Empire throne, he started up the conquests of addiction. The East Rome has another name, called the Byzantine Empire, the Byzantine Constantinople after its name, became the Empire of all, so the Rome Empire also gradually known as the Byzantine empire.
At the time of emperor Constantin who rely on economic reform and looting to cast a lot of money by the name of Sori DOS gold. The characteristics of this kind of money is of good quality, high gold content, but the first issue is difficult, because many mints are unable to cast it. But also because of this, only to not produce counterfeit money.
Until 15 years after the birth of the Empire economy gradually pick up, it gradually became the mainstream of currency, but the name of Suolidousi will become synonymous with hedging. In this regard, Constantin’s record on the economy is positive, at least he is ancient Rome Empire only one correct governance inflation of the emperor, but note that this is just to say he inflation approach is correct, but the final can not successfully removed the cancer.
The economic base determines the superstructure. In A.D. 527, Justinian accession to the throne, a lot of gold because of the age of Constantin Suolidousi accumulated so that the new emperor had a sense of security for the economy, so he kept conquests, be busy at putting up installations. During this period, the Byzantine Empire is a small-scale peasant economy, the economic structure is gradually formed during the period of Constantin. This economic structure makes the economy of the Empire to recuperate, but its disadvantage is that the rule framework is the lack of the slave society, cold violence, and lost the feudal political structure of the four emperors cohabitation period sensitive and severe. This situation is the result of the whole empire, in economic management in a passive, and can not effectively deal with various emergencies.
Here, you will find a very interesting problem. In successive years, leading to the Treasury empty, and no money repeatedly issued Justinian dilution, so according to common sense, should happen to deflation, but inflation, this is undoubtedly the shortage of materials and illegal coinage results. On the one hand, the war led to a decline in the level of the amount of labor and productivity, material supply shortage; on the other hand, Justinian around crazy Crusade, led the Byzantine Empire many neighbors have been implicated, a large population was forced to leave by war burned homes.
These refugees have two choices, one is to escape, some refugees have fled to North Africa and North Africa also results in the war, most people died in the war, and finally there is a small part of big life are not killed, more run farther, to the Great Rift Valley, and finally all died; another is this part of the refugees fleeing East, ventured to Constantinople, they urgently need shelter, and have come up with all the gold in his hand to the local household population, to get a place.
The news quickly spread like wildfire, more and more refugees into the Byzantine Empire, has brought a lot of gold and silver. To the Ostrogothic Kingdom and North Africa where the gold and silver coins but here for a time, so there are many large and small illegal coinage of the workshop, but could not reach the official coins fineness, circulation results from the two kinds of coins, is a good color Suolidousi official, the other is a color the folk Suolidousi. Unable to distinguish control currency, ultimately resulting in a panic. With the official coins of the people are no longer put it out of circulation, due to the color of the rampant counterfeit money, which makes Sori DOS overnight, there has been a substantial devaluation.
As inflation is more and more serious, and did not like the past rulers of Justinian, take measures to dilute money by increasing taxes, but to increase revenue. Due to the expansion of the Empire territory population grows rapidly, the trade also active, so when Char J Martin Ni wanted to solve the military expenditure by increasing taxes, those who had engaged in labor production people have to give up farming production, run to do the businessman, time caused a lot of barren land. So the rule layer and increased trade tax. As a result, people’s subsistence, so the main commodity prices rose sharply in a short period of time, which means that the relative decline in the purchasing power of money, didn’t have a good day for a few days old people once again into the economic panic.
Money is the economic balance of the weight, it always love act as a pawn of the economic crisis, but also played a “last straw” role. And the most important is, at this time, Western civilization began a historic intersection.
Under heavy taxes, businessmen prices relative, people in the hands of money and more money. At this time, from the ancient oriental India businessman with a lot of goods to reach the mediterranean. They found that the Byzantine Empire, inflation is very serious, if you use the same goods to trade more gold here, back then re melting gold casting, it will be quite a fortune.
So, they began to sell all kinds of goods for less than the price the price of a Byzantine local time, was warmly welcomed by the people, both parties think they represent a great deal. This trade boom soon spread to Constantinople, after the rule layer research thinks this is a good thing, to a certain extent effective to save the economic situation, and those from the east of the luxury goods also make them interested in.
But the merchant of India has also brought a terrible plague. After the outbreak of the plague, the whole country 80% of food crops, the bodies pile up like a mountain hand. After the plague, Char J Martin Ni will believe in God, until his death. The plague raged to the Byzantine Empire to the decline of the edge, and those by Justinian barely recovered back strength depleted territory, people of different nationalities have begun Naoqi independent. The plague is past, inflation and war will spread in this land. Finally, the ancient Rome empire in hyperinflation, gradually disappear. After the church and taken advantage of the rise, the whole of Europe, officially entered the dark ages.
The intersection of East and west civilization brought the first global wealth migration, a large number of gold and silver into the ancient oriental civilization, laid a historical footnote for the later development of gold and silver currency.
The Spanish Empire – explosive wealth destruction
In the hundred years war in Europe at the end of that moment, redistribution of power and settled in Western countries. The war destroyed the feudal system of European tradition, bud of capitalism provides for the original soil. At that time the entire European shortage of materials, this is the first step of western capitalism from the capital circulation and market trade change simply for plunder as the dominant mode of economic development, is the pioneer in Spain, the first beneficiary is the age of discovery.
When a country with gold and silver as currency, which means that its economic expansion is likely to be accompanied by a bloody killing, Spain is a country. After nearly two hundred years of war, the Moors from Liberia Peninsula away, this is known as the unified appellation of the European powers actually facing the national treasury, until the old embarrassing situation.
Plus the 1453 Osman imperial army captured Constantinople and the Balkans, Asia Minor area, often with a caravan of looting money and goods, and in the policy mandatory prior to the commodity charge demanding tax, led to the European market since East commodity prices soaring, and European goods also difficult to transport to the east. Osman imperial practice is actually equal to at that time at the throat of the East West trade.
In this case, the Spanish royal family remembers the best-selling book of Marco Polo at the end of thirteenth Century. The book describes a chapter about Oriental Wealth heart, remember that there was a wrote, “this country has gold, the number is infinite, a palace monarch, roofs with gold forging”. Yellow glazed tile of this section is written above the Chinese palace.
The Europeans believe that gold. Because the Portuguese trade in Africa to Europe have red eyes, 1481 was the king of Portugal, Joao S began to implement the prince Enrique’s behest, actively expand the Cape of Good Hope East route. A neighboring Spain has both jealous and helpless, Queen Isabel also feel a crisis of existence. As Europe’s gold reserves is very small, in the last resort, Queen Isabel summoned a man. The life in Italy, was to publicize their sailing plan in Portugal, but has been suffering from a cold, because his sailing plan and strategy draw further apart from Prince Enrique set, so in Portugal got very lonely, he is Christopher Columbus.
Not to be outdone, the queen of Spain at the sale of jewelry, to believe that “funding round theory” of Columbo, for his ship and capital to the east looking for spices and other treasures. Columbo deliver the goods, discovered the new continent of america. Although America looks a desolate, but Spanish here found something more valuable than spices, that is a lot of gold and silver.
According to statistics, from 1502 to 1660, Spain 1.86 million tons 200 tons of silver and gold from america. To 16 at the end of the century, the world of precious metals mining in the amount of 85% for Spain. In the occupation of Latin American 300, Spain where looted gold accumulated millions of kilograms of Silver billion kilograms, no wonder people say, America made Spain was wealth to “spill over”.
An unexpected windfall to eliminate the spirit of diligence in spain. At the time of the Spanish pop with a contempt for industrial atmosphere. At that time a Spanish words may represent the most people’s psychological satisfaction: “let the London production of fiber; let Holland satisfied production stripes; let the West Indies with production of beaver and pack it; let Milan satisfied production brocade; only to prove that all countries in the lowlands for the training of skilled workers and Madrid, Madrid is all parliamentary queen, the whole world to serve her, and she need not serve anyone.”
Drive this sense of pride, the Spaniards began lapped in luxury life. What is a luxury? The answer is derived from the ancient oriental Chinese porcelain, silk, tea etc.. At that time, the Ming Dynasty is used silver as currency, while the Ming Dynasty itself silver production is very low. But love these luxuries in Spain by Columbo a lot of silver from the Americas plunder. So, the Spanish silver began to seamlessly into the Ming dynasty.
Spain’s love for Chinese luxury? From 1571 to 1644, there are about 6294 taels of silver outflow from Spain, the equivalent to 37.3 today every two grams, which is 23496 tons of silver. Ming Longqing five years (AD 1571), the state revenue is revenue 250 taels of silver; Wanli twenty-eight years (AD 1600), the national fiscal revenue is 400 taels. At that time, Daming but the earth the highest national fiscal revenue, while Spain each year to buy luxury goods money amounted to 25% of revenue daming.
When the class differentiation in Spain is also very powerful. Spain accounted for less than 2% of the population of the aristocracy and church officials have 95% of the land. While accounting for 95% of the population of farmers almost no land. The remaining 3% ordinary priests, merchants, and other special occupation, according to their understanding of the wealth, not the middle class. Wealthy Chinese are addicted to crazy on the real estate and the pursuit of luxury, the manufacturing industry is serious contempt. The gap between rich and poor has reached the proportion of There was no parallel in history.
Why do people have bad? Because of the large number of American domestic gold and silver into gold and silver prices, resulting in decline, rising prices, the first is agricultural products, but both industrial products. By the end of sixteenth Century, Spain’s average price rose more than 4 times. The average price method, Britain and Germany and other regions rose more than 2 and a half times. Because the gold and silver currency inflows explosive Spain appeared serious inflation.
Primary products and food prices especially the speed. From 1480 to 1650, timber and grain prices rose 5-7 fold, manufactured goods prices rose only 3 times. In the past 170 years, prices rose at an annualised rate of 700%, if prices rise, the annual rate of only 1.2%. This does not seem high, but the wage increases speed is only half the inflation rate. At the time of the tax system is unreasonable, is mainly caused by the poor to pay taxes, so in the period of inflation, the fate of the poor.
In international trade, prices, the Spanish products with other than the more expensive, while in the international market has lost competitiveness. On the other hand, for the domestic market, as prices rose faster than the Spanish people’s income growth rate, resulting in a decline in the purchasing power of ordinary people, the domestic market is also increasingly narrow. If the goods are not dominant in the domestic and foreign businessmen to make money, Spain, have put the products of other countries smuggled into Spain, and a further blow to the already weak business in spain.
A lot of money into the hands of bankers. No more value-added treasure is not the large-scale war lords boundless consumption and kings continued. 1557, 1575, 1597, the Spanish government has announced a national bankruptcy. In spite of many bankruptcy, but America shipped an endless supply of silver and gold or let the Spaniards very satisfied, did not feel what a big deal. The most fatal, mineral resources are not unlimited, 1630s, Spain’s largest treasure – Mexico silver production falling rapidly, the Spanish royal family to wake up, no silver outflow, but it was too late.
Because the gold and silver into the kings and nobles of the hand, not Huize folk, so he did not develop the bourgeoisie, the whole country system not because the inflow of precious metals and any advance, not to the capitalist countries development direction. Spain from overseas search precious metal behavior, just “the accumulation of capital”. This accumulation, the result is the palace luxury rampant, while Spain abandoned the development of industry and commerce, business growing depression.
Serious inflation monetary Spain by a large number of predatory America brought gold and silver has affected the other side of the earth an oriental ancient civilization of the Ming Dynasty, Chinese happened serious currency deflation There was no parallel in history., once again, the gold and silver war to a climax.
The destruction of the Ming Dynasty Chinese Baiyin Empire
Many people think that sixteenth Century is Spain led European world, in fact, not. At the time of the Ming Empire with European trade, won the world nearly 50% silver. It can be said that the Europeans are so hard in America to dig silver, is to do business with Chinese. The result is: the Ming Dynasty absorbed half of the world’s silver production, become worthy of the name of the Empire of silver.
Poor Zhu Yuanzhang was born, who see their parents, relatives and neighbors were starved to death in the exploitation of corrupt officials, the uprising succeed when the emperor, he emphasized highly centralized and real economy, later known as the “Hongwu system”. Money, Zhu Yuanzhang continued the tradition of issuing yuan, issued the people for having heard it many times Daming Bao Chao, this is a typical cannot be exchanged for any metal coins and other quasi currency fiat money, but it is not sufficient reserves as a guarantee, which makes it highly excessive risk.
Da treasure from the beginning is not popular in the Hongwu Dynasty (1368-1398), folk prices have collapsed into 160 coins for banknotes (the official 1000 consistent = consistent notes), traders refused to use the notes and the alternate use of gold and silver. The Ming government began to use the means of prohibiting the use of folk silver, Hongwu seven years “not to ban civil goods trading of gold and silver, gold and silver in the crime offender; Yi Chao; to listen to” the Pope generation began to relax with a silver ban, but still have the responsibility to note, “notes” resistance after ten thousand penetration, and the family”. Even so, people still refuse to use the popular silver coins and notes.
But because of the officials’ salaries also have to pay Bao Chao has led to serious, health officials do not talk”. The late Ming and early Qing Dynasty “three scholar” of Gu Yanwu has publicly lamented “since ancient times, the salary is thin, not so”. When he was 45 years old, Chunan county magistrate, mother too to buy a couple of pounds of pork, but let the officialdom people rush about telling the news around spreading. That is not generally poor.
Finally in the concerted efforts of officials and the public, Bao Chao issued Finally slowly began to stagnate, the government gradually began to admit the silver tax (Jinhua silver) and currency. In the first year of Longqing Ming Mouzon (1567), finally announced that “where the sale of goods, the value of more than one silver money, money and money to make a stop following Xu money”. Another important reason is longqinghuangdi open ban and European trade to solve the serious shortage of the Ming Empire of silver.
From then on, completely silver monetization, then officials salary gradually silver, the Ming Dynasty eventually enter the silver gate. It is the silver standard system has brought prosperity and downfall of the Ming Dynasty last.
Longqinghuangdi after Emperor Wanli took office, his prime minister is Zhang Juzheng. The Ming Dynasty was in fact very low taxes, but because it is the use of physical delivery, resulting in the operation of large space under the corrupt officials, this is the most direct result: the Empire and the people were very poor, and in the middle of the corrupt officials made a profit. So Zhang Juzheng decided to reform the law. In simple terms, is that all taxes are calculated by silver, rather than real. This Law represents folk identity silver have official endorsement, while Chinese trade is the largest exporter in the world, which means the whole world to recognize and Chinese silver to do business.
In fifteenth Century, Zheng He’s seven voyages, folk smuggling rose gradually, and the Ming Dynasty and the European and American trade relations in sixteenth Century officially concluded, commercial prosperity wake up call for money. The outbreak of the international trade, the massive inflow of foreign silver, silver in the Ming Dynasty completely laid the status of monetary standard.
Chinese is poor in the domestic market of new silver, silver circulation mainly from overseas in Europe, America and japan. The European settlers in Portuguese and Spanish as the representative, since America silver will be mined and shipped back to Europe from the Americas, through trade flows to India and Southeast Asia, China international import and export, buy Spices, tea, silk, porcelain and other luxury goods. While the Japanese domestic copper rare, cheap silver is expensive, so the continued inflow of silver China.
This is how much? The annual yield about 30 taels of silver, the stock at the beginning of sixteenth Century a total of 5000 taels of silver, and this period overseas each year into millions of two, the total inflow of about 2 million taels, is about 4 times of local stock.
On the one hand, the inflow of overseas silver enhance the commodity exchange efficiency, on the other hand, the global trade in the Ming Dynasty, stimulate economic vitality, “harutaka Tang” spirit of birth. Silver tide also spawned many social changes: the city population, agriculture more commercialized, industrial and commercial prosperity, the late Ming Dynasty gradually transformed into a new world of business and secular.
So far, Daming country completed QE quantitative easing in the history of shape.
As countless human enlightenment “Jin Ping Mei”, written during the late Ming Dynasty to economic silver, Ximen Qing from the buckeens born to fight to the right to tilt to one side of the rich, there appeared a high probability the riches myth only highly open economy, monetary easing in the background, and even can be said that the silver trade and the making of Ximen Qing who.
A county upstart luxury meet the eye everywhere in the book, the court has strengthened as can be imagined. At this time of the Ming Dynasty on, whether it is finally starting to lead the Sydney, silver salary to turn fortune rich businessman, Jiangnan silver by the ordinary people to moisten the food, or by coastal remote areas hungry forgotten, still immersed in the spirit of Daming dream, we are not aware of, for the Ming Dynasty rely on silver, actually have far more than the degree of dependence on Western Chinese silk tea.
But after a series of seemingly accidental but inevitable event for the whole Ming Dynasty on the coffin nails.
The most powerful empire, but trapped in the battlefields of Europe to protect the Spanish maritime trade, the western trade is often in the UK and Holland in Spain because of looting; China commodity goods in the market value of the space occupied Spain and America trade restrictions; in 1630, American Silver yield fall; the winter of 1639, more than 20000 in Philippines, the Chinese were then, after the Spanish massacre, Philippines China America silver amount into. The summer of the same year, the Japanese government decided to ban Tokchon from Macao Merchants Trading in Nagasaki, who used to bring a large number of Japanese China silver line was shut down.
It was Disasters pile up on one another. is Chinese in the history of the cold little ice age, around the natural disasters, such as smallpox and bubonic plague plague is rampant. When the silver currency mainly in the “Jiangnan – Beijing – northeast border – South” circulation, lack of raw silk and cotton in the northwest and other places is basically no silver “irrigation”. At the time of the Ming Dynasty in the tax policy, the tax base for “food”, but must be translated into the “silver” settlement, reduce, in the late Ming Dynasty silver input crop under the condition of the emergence of the “silver expensive rice base” situation, is deflation.
After the 1640 Henan disaster, due to the inflow of silver is reduced, also the superposition of parity between silver and copper collapse: rice per bucket 3000 wheat per bucket 2700 money, money, The people are destitute. No silver in the northwest region are getting poorer, ratio of tax discount silver has soared, more farmers are unable to pay (do not have any silver), finally cornered. At that time, Ming general Sun Chuanting said a word: Li Zicheng lost a war, I can not afford to lose. That is because a large number of farmers in the ready to ride.
This silver shortage even spread to the capital, because the government has lost most of the financial and tax capacity, but also to aid in remote areas. “By 1629, the court ruling bureaucrats and nobles annually to the (only in as many as 40 thousand people in the capital) payment of salary, only 15 yuan less than the national budget 1%”. Obviously this is not good news, because of the lack of salary raises bureaucracy more stringent search, also formed a lot of people think that the collapse in the impression of corruption.
At the time of the late Ming Dynasty, at the same time to face deflation (Silver Circulation decrease) and monetary loss of sovereignty (cannot issue silver), also added tax system leads to the collapse of the silver deflation, eventually found that the fiscal policy of complete failure (not in the rescue of victims and pay rates).
The whole process is: even if the government can receive a tax in kind, also need to break a part of silver to save transportation loss, and then to the destination and silver grain purchasing. But because of the lack of any official monetary policy, dominated the silver and grain merchants and landowners, began to use their own advantages, the price scissors, and price arbitrage in the price of silver in the. The final outcome is that most of the silver precipitation to the landlord businessman, not into the treasury.
With the acceleration of Baiyin deflation, merchant landlords began to accelerate the withdrawal from circulation of silver, silver, on the one hand, exacerbating deflation, on the other hand the hand only coins and grain farmers, fold silver tax increasingly high cost. While the government is unable to print money also unable to adjust the tax system, only to increase a dead end. The final outcome is the people, a life-and-death struggle against the emperor’s death, the soldiers died, left a large silver merchant landlords tun.
In 1644, Li Zicheng besieged Beijing, Chongzhen appeal to everyone, father Zhou Kui would only donate 1 dollars only raised 20 taels of silver. 8 days later, Li Zicheng defeated Beijing, Chong Zhendi hanged himself, while the Ming Dynasty treasures only 17 taels of gold and silver, 13 taels. The unofficial history, Later Zhou Kui is silver was running in only 53 of the giant million copy.
The rise of the British Empire – the gold standard power
The Ming Empire conquered, the Qing Empire successor. But do not change the status to make only superficial changes of silver, silver silver status more secure. The emperor Kangxi (1661-1722), Europe has quietly a coin plot to destroy.
In fact, the British in seventeenth Century are based on a silver, and after the English Civil War, the Anglo Dutch war and the war between Britain and France, gradually strong, became the new European powers.
One important reason is the middle, the UK has been to maintain monetary stability and enjoy an excellent reputation in Europe as a whole, so as to promote the strong economic development in support of the war. But to maintain reputation is the need to pay a heavy price, is frequently recoinage.
The use of precious metals such as gold and silver coins, it is very easy to cause the currency devaluation, but in the event, the monetary system will collapse. There are many causes: one is the silver coins in circulation of natural wear. Then there will be a private cast silver speculation, leading to bad money markets. After making counterfeit money is also very popular, the last is Coiners itself because the interests of drivers making counterfeit money, causing confusion in the market.
Finally, if the lack of value of money in circulation, and people generally in accordance with the value to accept money, there will be a Gresham’s law had shown: bad money drives out good money. In this way, the flow field of the full value of the currency will be less and less, lack of value of the currency will be more and more. In order to guarantee the national credit and monetary authority of the rulers of the people will lose credit, instead of money in accordance with the actual content of noble metal (usually is gold and silver) to accept the money.
Because holding the full value of currency exchange is uneconomical, driven by bad money, a lot of people will be worth the money (such as silver) melting to exchange for gold. Because gold is few in the currency in circulation as before, on the formation of a large number of money value phenomenon. If the whole society is so, then a country’s monetary system basically was paralysed. This situation has occurred many times in British history, national basic reason of frequent recoinage lies in the monetary system is not stable. In the history of England famous recoinage respectively in 1257-1551 years occurred 16 times.
There appeared an important historical figure, is the scientist Newton. In 1696, Newton became the director of the Royal mint. Just this year, the British once again recoinage. Newton played a scientist’s strength, immediately let the mint Mint efficiency improved several times. Then he found a serious problem, the whole country is less and the silver, he not only spent the silver reserves, even the nobility to buy silver coins, but these coins like a clay ox entering the sea. Newton has been thinking about how to solve the problem of shortage of final silver.
It was not until 3 years later became the director of the Royal Mint, Newton made a decision to change the history of the world: it is gold and silver by the official price, but the most important thing is that he will set the price of silver is particularly low, while the price of gold of high. At the same time, the mint secretly reduced the amount of silver coins, silver coins lead to a listing of depreciation. This result led directly to the people to take foreign exchange gold and silver, and then back home to mint coins cast. This back and forth, a lot of gold into the UK, while silver shortage. In the course of time, people will default gold as a daily currency.
In 1705, due to Newton’s scientific achievements and worked at the mint during the credit, the queen of England awarded him the title of nobility, so Newton was praised as Sir Isaacs. So until Newton’s death in 1727, Newton and the Royal Mint in thirty years of work, when the director of the mint for 27 years. It is in this period, the British standard to the fact that the gold standard. “Monetary history: from 800 AD” author Jon, “in Newton after the reform, the United Kingdom to the fact that the gold standard, and in 1816 was officially confirmed”. (until late nineteenth Century), “gold and silver exchange rate since Newton in 1696 has remained fairly stable since the recoinage”. In fact, the gold standard almost run after the establishment of British hegemony in 1815 two hundred years.
Just like 100 years ago, the Ming Empire, because all over the world to do business with the Ming Dynasty so the silver standard currency in the world. Because Britain has completed the industrial revolution, the whole world is to provide raw materials to the UK, while Britain has completed the conversion from standard silver to gold, so the whole world had to exercise the gold standard. Here is a key event leading to the gold standard finally completely defeated the silver standard.
East India Company and the Opium War
Britain is not the first contact with Chinese later than western countries, Portugal, Spain, Holland and other countries for a long time, from eighteenth Century in late after gradually become the main trade country Chinese, has become a leader in the Western powers most of the time in nineteenth Century, the monopoly of trade with China is big, a China modern diplomatic history also can be seen as the Sino British relations history, from the history of foreign trade in modern Chinese is Sino British trade history.
The early British expansion in Asia is conducted by the British East India Co, the overseas colonial expansion by commercial organizations to perform the task, which is characteristic of business empire. In 1600 the queen of England awarded exclusive rights to India China trade to the East India Company, with the East India Company in South Asia expansion, in 1680s it reached the trade Chinese south, is a historical coincidence, just with Kangxi recovered Taiwan (1684) after the lifting of ban on maritime trade during the same period, until 1760s the Sino British trade limited in Guangzhou system, what big without friction on the whole place.
When British Chinese imports mainly from porcelain tea silk and other luxury goods, especially in the tea. The number of East India Company from Chinese imported tea growing exponentially, from late seventeenth Century to eighteenth Century in the year of 200 pounds, 400 thousand pounds a year, and then to the beginning of nineteenth Century 28 million pounds, become the main varieties of Sino British trade, brought a financial source for the East India Company and the two sides. Until the two Opium War period, Britain and Ceylon in the introduction of India Chinese tea successfully gradually replace part of Chinese tea imports of high-quality tea such as Qimen red China still relies on imports.
Before the start of China to carry out large-scale opium trade in Britain, China at a distinct advantage in international trade. China tea, porcelain and silk constitutes a breakthrough in conquering the world market barriers to export the “iron triangle”.
When the market is the real scene China: coastal Fujian tea export brought hitherto unknown prosperity to the local economy, the monopoly in the market in the production and processing, Wuyishan merchants to become a pilgrimage; in the Yangtze River, silk and cotton products is the most important industry, hundreds of thousands of cotton production and textile professional army to create excellent quality and competitive prices of goods, all over the world market invincible hand; in the Pearl River Delta region, the formation of the Jingdezhen – Guangzhou industrial chain, will be sent to the European luxury porcelain Everfount Royal rich living room. The end of the 19 century, the competent customs Chinese inspector general of the British Hird said in the “China travelogue”: “Chinese has the world’s best food: rice; the best drink tea; the best clothes, cotton, silk and fur. They do not need to buy a penny from elsewhere.”
From the 16 century to the beginning of the 19 century, Chinese developed nearly 400 years of market-oriented economy and currency, far more than europe. As a result, 133 thousand tons of silver from the European discovery of the Americas, the final 48 thousand tons were shipped to Europe Chinese. The basic framework of international trade is Chinese, create the main part of the world trade in goods, the main part of the world of Western plunder resources, in the process of silver from the west to the East Everfount, accompanied by China goods rolling die.
The continuous flow of Oriental silver, caused a serious imbalance in the world financial balance.
Due to the long-term Chinese net output of silver, by the end of the seventeenth Century European silver shortage, prices generally decline, while trade began to shrink. 1649~1694 years, the European average annual circulation of silver has drastically reduced the ratio of average annual circulation of 1558~1649 years reduced more than 50%, while gold circulation has increased by nearly 50%.
Silver reduction is the logical thing, how can increase gold? At the beginning of seventeenth Century, China Guangzhou’s gold and silver price ratio is 1:5.5 ~ 1:7, and the UK price for 1:16, transportation can not only change China silver to a large number of high profit goods, can also use the gold and silver price ratio of more than 1 times the price difference, with cheap expensive gold and silver for back in China, Japan and India. Even the British philosopher John Rock had complained: “I was told they (East India Company) imported from some parts of India (Huang Jin), at least to be able to get more than 50% of the profits. But the real wealth of Britain was buried in India ocean, now is the time for people to tell the truth frankly, why are we facing the era of unheard of silver shortage.”
When the gold influx of British bankers, by means of the huge bribe, bribe “1666 free coinage act” the birth certificate. This bill is essentially an important turning point in the history of currency, it changed the world monetary system, its specific effect is to abolish the monopoly of the currency of the king”. The provisions of the bill, everyone has the power to get the gold bullion mint, free legal gold casting. The bill is formed by Newton’s drive.
This bill will fundamentally help bullion bankers and business capitalists, they will have the actual control of the money supply. Due to hold a large number of physical gold chips, they will be able to decide according to their own interests in money supply. When they are creditors, would reduce currency casting, making the deflation effect, making the creditor’s rights value their ascension; when they are debtors, increasing the money supply to inflate away the debt. This is the first time in the Western currency essentially belongs to the government issued the transfer of the right to a private. Since then, the legal basis for the issue of the right to establish private central bank currency, and opened through the control of money supply of a country and even the whole world to control the distribution of wealth of the door.
In the case of the bankers, monetary control is a great struggle, control the production and distribution of money is to control the wealth, resources and humanity. To control the world, we must first conquer money; to conquer the currency, we must first conquer conquest and gold; gold, silver, we must first conquer.
Since the industrial revolution, the British Empire strength unprecedented increase, established by gold standard monetary conditions have been fully equipped in 1717. Although in 1816, the final establishment of Britain did not legally complete gold standard, but after one hundred years, Britain has in fact under the gold standard.
The British Empire bankers, the highest strategic goal is: to London as a global financial center, with gold as the currency of the world’s standard, the British Empire to the global output of sterling credit through the Bank of England, the major countries in Europe and the United States became the core members of the gold standard, the edge of the world countries become affiliated area of war with violence to maintain the operation of the system to the currency in order to maximize control and mobilize global resources, the final completion of the wealth of the world and human control.
To establish the gold pound world currency hegemony, must first defeat the silver currency. One of the biggest, the most difficult to fix is China.
After years of trying, the international bankers chose opium as a blow Chinese silver standard weapon. And is responsible for the implementation of the strategy of organization is a East India Company. It is generally difficult to imagine a company to recruit troops, grazing coinage, administrative justice, to declare war and peace treaty, but the East India Company did it. To have such a huge energy was so powerful company? The answer is in the city of London international banker, a bankers empire.
In eighteenth Century, the British China place to bribe officials and businessmen, a large number of China imported opium, and because of the serious addiction dependence leads to Chinese people more and more high demand for opium. In 1773, the East India Company in Bangladesh made the exclusive right of the opium trade. But because the East India Company ships are prohibited from transporting opium to China, so the first opium production in Bangladesh for sale in Calcutta, and then transported to Chinese there.
Although the Qing government has banned the Opium China entrance, and reiterated the ban in 1799, but eventually become a mere scrap of paper. The company is through the traders and brokers from Bangladesh to China smuggling of opium in Guangzhou and other places, as high as 900 tons per year on average. The endless input Chinese, the Sino British Trade and formed a huge deficit, although Chinese output of tea and silk were unable to prevent the silver outflow problem.
In 1838, when the number of input Chinese opium as high as 1400 tons, Chinese to smugglers sentenced to death, and sent the imperial envoy Lin Zexu oversaw the ban. Smoking and tobacco sparked days after the Opium War in 1840, the Chinese ceded Hongkong to britain.
So far, the East India Company and the Opium War, the British defeated the gold standard China silver standard.
Shanxi Bank – the world’s oldest encryption currency
The history of mankind has never lacked story, who would have thought 200 years ago unprecedented Chinese large Ming Dynasty silver by the British Opium war weapon to defeat finally established the gold standard? But it is an episode of the time hiding in the history, the birth of the world’s oldest encryption currency. Maybe 200 years later will change the pattern and the fate of the whole world.
In ancient Chinese daoguangnianjian, taking an operation for more than 500 years of help – Shanxi, entered the third stage of development. The first Shanxi bank, with the bank development, combined with the commercial and financial capital, Shanxi became the originator of the China financial industry.
First bank called Chang Piaohao, founded in 1823 (Dao Guang three years). The first president Lei Lvtai. When is the largest West Yucheng paint merchant capital, often Shanxi Association asked Lei Lvtai, from the capital to his home in a silver, they gave money to the West Yucheng Beijing semicolon, a semicolon written notice to the total number of Pingyao, then in Pingyao extraction, West Yucheng earn some exchange fees, said “in the post”. The talented Lei Lvtai sensitive this is a great opportunity, so the club will suggest that Zhuang pigment to financial institutions a franchise exchange.
They may not think at that time, this small decision has led to the Shanxi again. Crucially, Lei Lvtai invented a “method to precision, to Chinese characters representing numbers password method, using 10 digital number Chinese characters as a draft code and a silver in 365 days. This is the earliest history of forming a crypto currency.
This kind of combination often change, prevent leakage, in its decline in the past one hundred years, never happened with the impersonator events the system effectively. According to the draft rules, draft in the payment immediately after burned, so no one used the bill passed down.
The extraordinary business acumen, certainly will not let alone benefit reachall. The transition in the West Yucheng after three years, most of Pingyao businessmen, “Hou million” said Hou Yinchang will make a prompt decision, wth silk to Shanxi, the total number of reachall stand shoulder to shoulder with only a wall. Hou Yinchang also had two reachall dispensers, with big thunder Lvtai trouble Mao Honghui to hire wth. There is also a refuge after being squeezed out of a remarkable talent of many ages, Chang Hou family, in order to reachall competition, he put the Shengchang Hou Wei Zhuang, Heng textiles, silk Tiancheng Xintai thick silk cloth Zhuang and Wei rich silk breath into wth, Heng Wei, Xintai Tiancheng, Shengchang thick and the huge ticket known as the “Wei” five word chain, immediately formed a situation meet as equals.
And the five word chain for our development in the fierce competition in the thunder and hair, and lucrative. The huge profits to attract a large number of rich resources of Shanxi merchants have to follow, so that the rapid development of Shanxi bank. From 1823 to 1852, Shanxi bank by a number of development, developed by Pingyao County three, Qi, too, began to form three for its flat shape.
The development opportunity of Shanxi bank is right in exchange for our internal manager when, this has led to a certain extent, the prosperity of Shanxi bank. In Lee, Hou two under the guidance of the late Qing Dynasty, Shanxi had as many as 33, only Pingyao has appeared in 22 banks, they set up more than 400 in the semicolon 77 national ports, towns involved. So far, north to Baotou, Zhangjiakou, West to Tihua (now Hohhot), Liangzhou, South to Hongkong, constitute a far-reaching and financial network, known as the “land of wealth”. Among them, there are 31 reachall semicolon, wth amounted to 34, for each of the most.
It is these banks to form financial network nodes, the world’s first distributed bank, no China Qing central bank authorization, still can ensure the safety of funds and freedom. While accounting has become the world’s first miners return.
Shanxi bank is prudent for the word to Xinyi huitong. As in the TV series “Joe courtyard” said, 100 years ago, these merchants almost monopolized the China financial market, will advance the cause to Russia, India, Korea and Japan and other countries, has created a miracle in the history of commercial Chinese. Part of the business philosophy has been quite modern, after hundreds of years in Wall Street.
At the beginning of the twentieth Century, bank, banks, foreign banks in Shanghai once had a situation dominated by three powerful rivals. When a manager of Shanghai HSBC told banks give such evaluation: “twenty-five years of HSBC and businessmen in Shanxi made a lot of transactions, the number of Jiyiliang, but did not encounter a deceptive Chinese.” Shanxi had a hundred years of history, never make mistakes or do not give any bad record of payment.
At the end of the Qing Dynasty, Shanxi city of Pingyao have a living by begging the old lady, holding a silver 1200 two draft, to honour our silver. This bill has been more than thirty years, the inspection is correct, they have no oppression, no repudiation, immediately to the full payment of principal and interest. The original 30 years ago, the old lady’s husband fur trade in the field, after making money into bills hidden in the body, the way sick to death. 30 years after her husband up possessions, was found accidentally. It makes our banks “honesty, fair trade” reputation. Shanxi rely on good faith rule the roost in the country 500 years remarkable.
All China even circulating around the world, anyone can enter the bank deposit bank. No matter where you are, as long as the exchange node can cash exchange. Wait for the ticket confirmation P2P network node after the transaction, a large amount of money can directly transfer or withdraw. Without any control mechanism, will not leave any cross-border transactions. Just look at the bank security, the private key password, completely anonymous, free, free regulation. 100% honesty, fair trade.
“One day can deceive; playing rape, two days can be playing rape, obscurantism. But no one firm, a few years, decades can be removed from the world by playing rape.” This is the year of Shanxi bank’s business philosophy. In the United States Reagan museum with a Chinese Qing Dynasty notes, it comes from “rishengchang”. This note to watermark printing, the other is equipped with anti fake cipher “book”. Losangeles State University of California Department of Finance Director P B professor William has said: the modern currency anti-counterfeiting technology originated in the China, and their construction of credit system, which can not make people respect for Shanxi bank and its contribution to the financial industry and the world China.
Unfortunately, at that time, Yoshimichi years, Chinese economy has undergone a long recession, known as Daoguang depression, from silver expensive copper base, deflation, Daoguang depression is like a financial crisis or financial crisis plays an important role in Daoguang depression.
The Qing Dynasty inherited the Ming silver coins, money is small, the ratio of copper and silver on behalf of the monetary base of the trend, the ratio theory is 1000:1 (1000 of the value of 1 two silver), but then two things happened: one is the Latin American Revolution caused global production of silver silver rose. Two is the Chinese trade surplus becomes deficit, the outflow of silver. From sixteenth Century to eighteenth Century, Chinese has been the world’s largest importer of silver in nineteenth Century, the first ten years, there is a net inflow of 28 million dollars. The silver flow reversal, 1808 to 1856, the average annual net outflow of 8 million yuan, the peak in 1840s to 50s year net outflow of 17 million yuan of.
The Qing Dynasty was in monetary management has not adopted a fixed exchange rate, but with the floating exchange rate. The results of the early eighteenth Century is generally 700:1 or 800:1, in the 40 year of nineteenth Century is 1600:1 1800:1, and then to Xianfeng more up to more than 2000:1. The ultimate currency system confusion, caused the credit crisis made a lot of money, Bandar’s failures, such as deflation effect of modern economy, the real economy recession, the social crisis, is the Daoguang depression.
Due to the development of banks rely heavily on the Qing government’s political environment and monetary system. The violent impact of war and political change in the “Eight Power Allied forces invaded by” and the 1911 Revolution in the storm, caused great trauma and even fatal blow on it. After the Boxer Rebellion, although the Shanxi bank had a recovery increased, but this is just the “internal damage degree, the last radiance of the setting sun” has been considerable, barely support 10 years. To the success of the Wuchang uprising, the Qing Dynasty was overthrown, the government of the Republic of China was founded, all its privileges and advantages do not exist, it also does not support the building collapse.
Bitcoin again – intersection of eastern and Western civilizations
From prehistory to the ancient Egyptian civilization, the ancient Rome Empire to the Byzantine Empire from Spain to the Ming Dynasty emperor China maritime hegemony, destruction from the Empire to the Qing dynasty. We have gone through nearly 10 thousand years of history, and finally back to the point of bitcoin.
The earliest of gold gold worship from the sun, this is the consensus of gold. It is no wonder that the majority of people to complete with no reality whatever bitcoin can not find the feeling. After all, how to see with the naked eye, bitcoin is just a set of code data completely not to the point.
From the beginning of the earliest human culture, the human activities and the origin of civilization and the gold, and the gold is closely related. The ancient civilization of mankind from the earliest Pharaohs system highly autocratic centralization system to drive the gold exchange by slavery, itself is a decentralized process. From a single node to multiple nodes, this process is not because bitcoin appears, there is a natural human needs. Today we see the birthplace of civilization is accompanied by the development of gold and mineral. Like bitcoin earliest development is accompanied by the world’s different network miners made computer nodes join the bitcoin digital golden world.
From the long history, we have seen the human system from centralization to step to the center of the system. The formation of gold and silver currency brought large-scale development of human activities, while the first has a large quarry country formed a new civilization system. Like bitcoin and invention is not Chinese, but bitcoin is inextricably China decomposition of kinship. Today, 70% of the world’s mines are derived from the China, first with a large field to master the national final advantage. This is what we will see into the human civilization — is civilization, civilization to machine intelligence chip based.
While gold in history for a long time, not only is the silver currency. Ancient Rome began to implement the “silver” to the Byzantine Empire was forced to turn to the gold standard, gold and silver has experienced the war of 2000. The ancient Rome Empire to the two World War, human civilization has been in constant change. The core reason for change in who is the ruler of the world. The rulers of monetary decision attributes.
It seems from this perspective, bitcoin as a currency machine intelligent civilization, and no violation of the ruler’s attribute. Bitcoin currency is just the machine intelligence Empire “”.
But the biggest cancer from inflation the Rome economy era has been accompanied by human witnessed another Empire collapsed. The era of ancient Rome has reduced the content of gold and silver coins to the devaluation of the currency act, to not judge so that the fineness of the Byzantine Empire rampant counterfeit money, money can not distinguish between true and false, unable to confirm the power, cannot be traceable into a human’s long nightmare, the nightmare with the human world for 2000 years, until the emergence of bitcoin.
With “digital gold” to describe the bitcoin is very appropriate, now known as the world no more than 200 thousand tons of gold reserves. From the beginning of 1493, has produced 180 thousand tons of gold. For technical reasons, 91% of which are from 1900 after mining. This ratio seems to bitcoin is just the opposite, because bitcoin due to the network setting mechanism, the sooner the digital gold mining, “more”. The later joined the gold miners, “digital” less. But overall, the attribute of bitcoin indeed and gold showed high similarity.
But is not the natural gold standard, as you read this, gold throughout human history has been in the fight with silver. Today, the emergence of bitcoin, but a higher dimensional species on gold dimension blow. I don’t believe that gold will always be currency like the United States in 1970s and the gold standard to the oil. This new species today, will be relentless rolling on gold.
Bitcoin will never appear like the Spanish Empire once appeared: because of abundant monetary wealth leads to currency prices collapse, which led to rising prices, and ultimately the formation of serious inflation.
Then in turn, bitcoin has been a controversial place, is the attribute of deflation. Because the total amount of bitcoin is not constant and adjustable. So there are a variety of experts has been stressed that bitcoin may not be money. Even out of the Ming Dynasty historian China last silver standard deflation collapse to describe bitcoin future prospects.
Let us first look at the definition of money again. Marx has described the theory on currency: currency is fixed as a special commodity general equivalent (this definition is based on the metallic monetary base). Explain this sentence, money first is commodity, commodity is used to exchange products, with value and use value. There is no distinction between the value of human labor in commodities; the use value of goods to meet people needs certain attributes; the exchange value of commodities is a relationship with another kind of the use value of commodity exchange amount.
Bitcoin as a special commodity, the cryptography, network machine compulsory form a right of exchange contract, separated from the commercial world can be taken as the unified expression value of all other commodities, and can serve as a general equivalent, is 100% in line with the definition of money.
But as we know today gold around the world total storage volume of 200 thousand tons, the real circulation in the real gold accounted for only 0.95% of the total. This has included the sale of gold bullion was and actual use value of products etc.. I don’t think the future of bitcoin is used as currency as worldwide large share high turnover rate of. The future of bitcoin is more like gold is used for value function of appreciation.
As I said earlier, many people have misunderstood the meaning of bitcoin network lightning. Lightning network can not make bitcoin notes produce similar features used, lightning network is to solve bitcoin in addition to mass transfer produced value practical value of the scene. The value only in the real scene, bitcoin will eventually enter the human world view, truly become “digital gold” attribute.
A lot of people who don’t understand to the center of the end is a concept of what. Throughout history, mankind has experienced a single currency to the intersection of eastern and Western civilizations by a single huge empire, world hegemony for the gold standard and the silver standard, then to the British Empire rise all over the world for 200 years the gold standard of anchoring.
But the decline of the British Empire is a historical necessity, not because the natural currency value of sterling. Just mentioned notes of metal currency on behalf of Max. This is a symbol of value. Is the value of gold and silver standard currency. The British Empire was accompanied by a pegged currency and gold in different countries around the world, which means the world of gold to the center from the beginning of ofanchoring gold currency diversification. The Bretton Woods system from the British establishment of gold standard collapsed, a total of more than 170 currencies pointing to the center of gold.
The world from a single civilization to a multipolar civilization, the transition from single Empire to many countries, and there are 233 countries in the world today (region), the historical process contains thousands of tens of thousands of provinces, city and numerous villages and towns, it is the best explanation to the center.
China is not absent in the bitcoin development in. Many people have said that the British established the world’s most complex and the most comprehensive financial system, that it is only through the Opium War and the East India Company, with immoral means, let the gold standard over the silver standard a final performance. See things, to understand the essence of things. Although China failed in the gold and silver money in the war, but the birth of the world’s oldest encryption currency, Shanxi Merchants’ piaohaos. The concept of management and financial system unprecedented perfect, even better than the Wall Street 100 years earlier.
Chinese will play a crucial role in the bitcoin war and the rise of the blockchain civilization, its importance will be far more than the United States, Russia or any other country, and we all human imagination. World science and technology center from the Silicon Valley gradually become a city of Silicon Valley and the China. For a long time in the future, we will see that the transition.
Look at the past million years of human history, the core of the story has never changed. The Byzantine Empire replaced the ancient Rome Empire, is the gold standard against the change of the silver standard. In the modern history of hundreds of years, it is also accompanied by the war gold standard behind the eastern and Western civilizations and silver war. This story, today called the Sino US trade war. Nature is the collapse of the Bretton Woods system after the old oil dollar hegemony and the rise of the yuan Chinese become a world currency war.
History never simple repetition, today, the first man to face a new variable, called intelligent machine civilization. The currency of this civilization is called bitcoin.
This is the long history of mankind for the first time to face non human civilization, and bitcoin, is the starting point of intelligent machine civilization. Today many people think bitcoin has absolutely no sense, because it is only a group of data encryption.
But please try to consider this problem from the angle of network machine. Now it seems human into Sumer, the network is desperate to bitcoin this “digital gold” appearance. And then there will be a network of machines of ancient Rome civilization, the Byzantine Empire, the Spanish Empire of the sea, Chinese of the Ming Dynasty, the British Empire and so on a series of process. The human walk nearly ten thousand years are likely to be in a very short period of time by the network machine copy, because the stress evolution faster, intelligent hardware and robot will upgrade to speed the arrival of far more than the human imagination.
May be an inappropriate analogy, but if the human civilization from the prehistoric civilization began to today, with the earliest Sumerian civilization with gold ornaments and today the world’s total wealth to do comparison, we can see the human wealth growth from tens of thousands of dollars to this day more than $320 trillion range. Is more than 10 billion times growth. Why do we see bitcoin soared in the past ten years? It is precisely because the network civilization is the machine with a very short period of time to finish the process of human history. We see bitcoin highest increased only to 3 million times today, seems from human civilization as well as 10 thousand fold growth space. Of course, this is just a kind of analogy, is not to say that the future of bitcoin will grow to this figure, it is likely that the entire block chain could reach the value of civilization, even beyond the number.
But there is a very easy to understand the data, is if has not developed the gold account, excluding off our temporary technology cannot make use of 1 million tons of sea gold, at present the global gold market value of about $12 trillion. Human civilization from the gold and silver standard war to the dollar Renminbi currency of the world’s war to human currency and currency war machine network. Mankind is gradually to the machine network migration, it will be a machine civilization There was no parallel in history. demographic dividend.
We see the events before 2017 9.4 only 5 million people around the world concerned with bitcoin digital currency, and by the end of 2017, this figure reached 15 million by the end of 2018, because of the bear market reasons, we estimate the number should be 20 million people. A distance of 7 billion and 350 times the growth space.
I have said before, the next ten years is a big recession, this is the gold investment growth period, so from the beginning of 2019 ten years, we will see bitcoin and the value of gold common growth in ten years. In the next ten years, the total market value of bitcoin will reach the total market value even more than the gold market, which is $12 trillion. Now bitcoin only $80 billion of the total market value of the future based on at least 150 times growth space.
Chinese has a saying: call the promise of Tai Chi, Tai Chi astrotech, astrotech students four images, four images and gossip. This sentence highly summarized Chinese the wisdom of the ancients. With a simple point to say, is a life of two, two, three, three things.
In the past, the whole world has experienced from a single civilization to the confluence of eastern and Western civilizations bipolar civilization. Today, we see the Chinese as the representative of the ancient oriental civilization to rise with the United States as the representative of the Western civilization gradually fading mixed human civilization and civilization emerged in the history of machine intelligence.
Next time, we will see in the next 70 years of human civilization and civilization and the unity of human civilization evolution machine and machine mixing, three things.
Finally, Marx apply for the precious metal in the demonstration of “critique of political economics” to the end of this paper, and this sentence is known to the world: “the natural gold and silver is not money, but money is a natural treasure.” Today I want to add a sentence in this sentence, in order to make the meaning more complete: