What does the maker of currency mean (institution that manufactures currency)?

08/20/2023 02:03 • Digital Disruptors • 69 views

The meaning of the maker of currency refers to a form of currency created by combining a type of digital asset or a basket of virtual commodities, which can be understood as a currency unit. Currency is created and issued by a group of computer programmers who generate digital tokens by randomly selecting specific objects (such as Bitcoin), allowing them to be freely traded in the market. This encryption algorithm is determined by a mathematical formula, which divides it into three types based on chronological order: one-way exchange, non-fungible exchange, peer-to-peer transfer, and other complex financial instruments, etc.

Institutions that manufacture currency

Editor’s Note: This article is from ChainNews (ID: chainnewscom), written by Li Xuetin, and authorized for publication by the Planet Daily.

The “Great Depression” of December 28, 2008, came to an end. At that time, the US President Joe Biden’s administration announced the introduction of a new law to make it the first country in the world to officially recognize its currency sovereignty. However, the price of Bitcoin subsequently fell below $36,000, making it one of the global speculative assets, along with the drastic drop in prices of precious metals such as gold and silver to historic lows. But as the world enters the digital age, this unstable environment is gradually being broken and repaired. And now we are facing a new challenge: who are the creators of wealth, the institutions that hold economic power, and the individuals who control the future financial system?

First, let us take a look at the most significant historical events in human history: “The first major crisis occurred in the late 11th century BC, which caused significant destruction to human society. This crisis affected people’s lives; the second major transformation led to economic recession.”

Since the emergence of the Internet in the early 20th century, the development speed of network technology has far exceeded that of traditional information technology, and various decentralized applications and protocols have emerged. Although blockchain technology has disruptive and revolutionary potential, in the eyes of many people, it is a huge revolution because its changes bring a brand new environment of free competition.

However, if the Internet solves the problem of information asymmetry, the Internet provides a new form of information acquisition, where any party can obtain personal information and the right to privacy by collecting data. The concept of “the value exchange and payment system of the digital age” has always been monopolized by technology giants.

Currently, no company can provide these functions, “none can do it.” Therefore, when the market begins to expand, it becomes difficult for them to achieve their goals. So I believe that in the coming decades, this field will become very complex and constantly changing, just as most industries cannot do today. They need to establish a complete set of services and mechanisms to support innovative business models.

However, to truly make these services effective, two important conditions must be met: one is to ensure the security of everyone’s identity, and the other is a secure and reliable means to minimize user trust. For consumers, the most important issue is credit. Due to the lack of trust, traders ultimately have to rely on intermediaries for cross-border transfer fees. In other words, you cannot use third-party intermediaries or banks like ordinary people, otherwise, you will suffer losses, which is one of the reasons why cryptocurrencies have existed for so long.

The second requirement is that there must be sufficient reasons to make commitments to users, even if you want to create better products and services for others, you don’t have to worry about the needs of customers.

The same goes for the third requirement:

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What does the maker of currency mean (institution that manufactures currency)?

Institutions that manufacture currency

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