known: The three functions of money are medium of exchange, storage medium and unit of account.
Money has played an important role in the course of human history. Currency is the product of the commodity economy. The emergence of currency not only solves the contradictions in the circulation of commodities, but also promotes the development of the economy. The history of financial and economic development. The continuous evolution of currency forms has different forms of existence in different periods.
The current theories that have a greater impact on the definition of money are:
Marx believes that money is a commodity that acts as a general equivalent, and is an inevitable product of the development of commodity exchange and the development of value forms. In a developed commodity economy, money has five functions: a measure of value, a means of circulation, a means of payment, a means of storage, and a world currency.
The monetary school represented by Friedman defines money as the habitat of purchasing power, and separates the buying behavior from the selling behavior.
Keynes believes that money is a symbol used for debt payment and commodity exchange. It does not need to have the entity of precious metals, nor does it need to have intrinsic value.
Mishkin, a famous American economist, defined money in his book "Monetary Finance": Money or the supply of money is anything that is generally accepted in the payment of goods and services or in the repayment of debts.
Back in 2014, Robert Sams articulated this exact issue on Ametrano's Hayek Money: Price stability is not only about stabilizing the unit of account, but also about stabilizing the store of value of the currency. Hayek Money aims to address the former, not the latter. It simply trades a fixed wallet balance against a fluctuating token price, and a fixed token price against a fluctuating wallet balance. The end result is that the purchasing power of Hayek Money wallets is as volatile as Bitcoin wallet balances.
But in the blockchain world, except for stablecoins, the prices of all digital currencies fluctuate (there are many reasons for this, such as the economic model of Bitcoin deflation), so digital currencies such as Bitcoin do not They are more like investment products such as gold. It is more a period of social value circulation, multiple periods or a long or short period. Its currency is a game of price and value.
Therefore, in the world of blockchain, various experiments are made to carry out currency value circulation, at a certain time or at multiple times.
Zetos Share is a token that adjusts its supply deterministically (i.e. using an algorithm) so that the price of the token moves in the direction of the price target Zetos Cash. At the most basic level, an algorithmic stablecoin expands its supply above a target price and contracts below it.
When the currency price is too high, monetary easing is required, which is the so-called "water release", and when the currency price is too low, the currency needs to be tightened. The legal currency in the real world, the country's future currency stability, mainly depends on the national central bank and financial means to maintain the dynamic balance of supply and demand of the currency, so as to ensure that the purchasing power of the currency remains within a relatively predictable fluctuation range.