In recent times, Bitcoin has been hotly fired in the country.

Bitcoin has been hotly fired at home in recent times, but the talk about Bitcoin has gone well beyond the analysis of speculation, and even impatient people think it should be the international currency that is out of the dollar's hegemony.

Now Bitcoin is clearly not a currency, this is not because it is not issued by the government or central bank, but because it lacks the most fundamental general tolerance of money, that is, it has not become a universal medium for most people or most economic transactions, which means it does not have extensive commercial credit.

In life, people habitually put paper money as a source of money, other such as deposits, credit cards, bank accounts and other means of trading are regarded as the replacement and extension of paper money. However, the social and economic reality is quite the contrary, the settlement system based on bank accounts is the fundamental and core of the modern monetary system, the basic form of the modern monetary system is the money created by the commercial credit (the corresponding relationship between the assets and liabilities) that the bank provides for the loans of various trades. A small amount of paper money is just a situation that meets the day-to-day petty transactions, but the central bank or the government gives it a further public character by law. And Bitcoin does not have the business credit of real trading activities, the current Bitcoin trading is more in the sale of an electronic symbol of ownership. And when Europeans hype tulips, the Japanese hype golf membership rights, such a local range of asset prices rise is only a liquidity-driven bubble, facing the collapse is only a matter of time.

But it is too early to deny the possibility of bitcoin becoming a currency. In a sense, currency theory is a kind of circular method, so long as people think that Bitcoin is a kind of currency and is willing to use it as a means of trading, it is possible to become a currency. The question is how can bitcoin gain this kind of trust? The process of economic expansion is risky, the general embodiment of expanded reproduction, not only the accumulation of capital within the enterprise can be completed, more often we can see the enterprise to land and other fixed assets of the future value as collateral from the bank financing, into the project investment capital. But in fact, for all economic purposes, the real source of security is necessarily the return on investment of such projects. The higher the return, the more bad projects that can be covered up, the greater the risk that the banking system as a whole can withstand, and that is why technological innovation, as long as it creates new demand, will enter a period of expansion, in which the sum of money will be most consistent with this expansion.

The system of Bitcoin is clearly unable to provide this function for the global economy, but its inability to replicate as an electronic symbol does give it an electronic tool to achieve some of the currency's functions, such as the most realistic possibility of becoming a cross-border electronic purse. However, since it is not regulated by any central bank or government, on the surface this is a complete market-oriented system, but this market-oriented trade is bound to face the instability is also its fatal flaw, it will inevitably encounter the "market failure" brought about by the trouble, one of the most obvious truth is: the whole life to promote the free economy "invisible hand" Milton Friedman is precisely the constant emphasis on controlling the money supply of the standard-bearer, which is the inevitable fate of Bitcoin. But if Bitcoin is lucky enough, when the bubble burst, which already had enough cognitive and influence in the world's major countries, its bursting with the crisis might have been its rebirth as a global currency, because the failure of Friedman's theory was precisely the turning point in the Keynes-not-Keynesian intervention theory. It is only in that crisis that Bitcoin could become a World Bank that is not affiliated with a single country.