On 11. In February 2009, five months after the Bankruptcy of Lehman Brothers and its peak-to-reach financial crisis, posted an anonymous computer scientist calling himself Satoshi Nakamoto on one of the programmers used Website: “I’ve developed a new open source P2P e-cash system called Bitcoin. It’s completely decentralized, with no central server or trusted parties, because everything is based on crypto proof instead of trust.” (“I’ve developed a new E-Cash System called Bitcoin, which has a public source code, and with the individuals with each other electronically to send money. It is completely decentralized, without a Central Server or trusted parties trusted, because everything is based on crypto-Documents is based on trust”.)
The problems of the Euro and other currencies
the occasion for Nakamoto’s development was his disappointment over our existing money system. In particular, he criticized the fact that credit money “waves of credit creates bubbles” and state Central banks have cancelled credit money in the course of history, again and again. Since money from the banks by granting of loans is created, it is possible to Finance investment with new money, without the money savings have to be formed. The interest rate of the Central Bank is manipulated to control the economy, the result is Boom cycles, Bust. And the state needs fresh money, the banks, by buying its bonds. The Person
Thomas Mayer founding Director of the flossbach von Storch Research Institute. Before that, it was until 2012 the chief economist of Deutsche Bank.
with this Post-spread the Bitcoin white paper laid the basis for the development of private crypto-currencies as an Alternative to credit money. The first Generation of the pure “payment token” that belongs to the Bitcoin, followed by further generations of the “Token” to the today’s most developed “Asset-Token”, which will open a new perspective for the generation of money. The table gives an Overview of today’s most important existing and potential forms of Money your own presentation
The demand for the various forms of Money depends on the stability of the purchasing power, of the security as a store of value, ease of use, transaction costs, and market penetration.
the advantages of The Bitcoin
compared To the credit money does Bitcoin have a number of advantages. Since money is not created as a liability through lending, for its regulation, insurance and management neither a state nor a Central Bank. The security of transactions and as a store of value is guaranteed by the Blockchain, which also simplifies the execution of transactions. The transaction costs will be financed by Seigniorage, the remuneration of computer operators for the proof of the validity of transactions in the Blockchain. However, this applies only as long as, until, by the algorithm defined maximum volume of 21 million Bitcoins is reached. Accordingly, the audit of the transactions of the users will have to be paid.
rush It but there are also a number of disadvantages. The purchasing power of Bitcoin and other payment depends on the tokens alone from the supply and demand for the Token. As long as the market penetration is low, and the legal tender remains the dominant unit of pricing of Goods and the money of account varies, as does the purchasing power of the payment token enormously. In addition, the cost of transactions in the Bitcoin Blockchain are increasing over time, because the validation of transactions with increasing length of the Blockchain is very complex. For the same reason, the speed of processing in the classic Bitcoin has taken off-Blockchain. Since the payment token, the use of the Blockchain, can handle large transaction volume hardly, your market penetration is probably low, and this Token, therefore, niche products with unstable purchasing power remain.
significance of the “Stablecoin”
The ability to integrate Smart Contracts in the Blockchain, has opened the door to Asset-Token. This Token is a contractual to a different value and can be traded therefore for the price of this value. Their purchasing power is as stable as the value, with which you are connected. Their market penetration depends primarily on the supply and demand for the Token, but by the supply and demand for the underlying values. Given the higher purchasing power stability and the related market penetration of these tokens are also referred to as the “Stablecoin”. to reduce
the cost and increase the speed of the validation of transactions, issuers may also use an “approved” Blockchain, only a limited number of authorized Stations for which validation is required. Whether the user must bear the costs of transactions caused by the necessity of the validation of the Blockchain, depends on whether the underlying assets yield values of income. If so, you can use the Issuer of the token, interest income on the financing of transaction costs, and the users pay with the tokens for free offer. If this is not the case, you must ask the Issuer to the users of the transaction costs.
Facebook’s Libra is an important project
The Facebook-initiated crypto-currency by the name of Libra than with a basket of currencies covered “Stabelcoin” and using an “approved” Blockchain” transfer emits can be. Libra could be for future users is attractive because it offers immediate, cost-effective Peer-to-Peer money transfers in any size and across any distance. You currencies, as a robust Instrument for the maintenance of value with low risk due to exchange rate fluctuations of the to your cover held in the Basket to Third. It could also be a unit of account, when providers decide, on global trading platforms, to price their Goods in Libra. When you consider that Facebook and its affiliates today have about 2.7 billion users, and future members of the Union will come to add more potential users, the potential customers of Libra is far above that of any other existing currency.
Probably Libra is encountered so strong resistance. In particular, three groups have an interest to prevent Libra. The commercial banks fear that they will lose customers, if Libra is the preferred Instrument for transactions and a store of Value. The Central banks fear that their ability to control the economy, decreases, if a major part of the generated money is placed as a cover stock for Libra still. And the politicians fear that they will be, for the financing of the state expenditure of the Libra reserve Fund is dependent on the only interested in short-term government bonds.
Therefore is expected to be introduced in Libra probably first in Africa and Latin America, where a means for cost-effective transactions, and to secure a store of value is missing. From there, Libra may, however, occur in the United States and Europe, possibly in competition from China, the crypto-penetration currencies. This perspective has also ripped the European Central Bank, which previously held of crypto-currencies very little from sleep. Now you want to think more about the digital Central Bank money.
By the conversion of the Euro to a pure Central Bank money (“plain money”) in the Form of crypto – and the paper money, it could put the currency Union on a more stable basis. Because if, as the cover pool would be used for the “stablecoin” prepared by Euro sovereign bonds on the balance sheet of the ECB still could have taken a large part of the debts of the Euro States in a single transaction from the market and the market-related debt ratio for all will be reduced to 25 percent of the gross domestic product. A common Deposit protection would not be necessary, the cost of the payments would fall, and the European common currency would be compared to the coming crypto competitive currencies capable of. Banks collect savings deposits and to borrowers forward, to create instead of credit money and the interest could form on the market, to be held by the Central Bank-controlled.
But the ECB instead of the opportunities only the problems of a digital Euro. You want to restrict its role on the part of a substitute for paper money – and missed the Chance to preserve through digitization the European currency before the next financial crisis is likely to decay.
More text by Thomas Mayer in FOCUS Onlne
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