When discussing the issue of bitcoin with netizens, many people mentioned the devaluation of the legal currency system, believing that cryptocurrencies such as bitcoin are hedging tools for currency devaluation. In fact, this problem is not unreasonable. Most of the legal currency systems are devalued, which is a means for the state to regulate the economy. Of course, some of the devaluations are passive or active, depending on who is leading the devaluation. In fact, there is no currency with absolute value preservation in the world, and bitcoin is just a concept, unless we go back to the era of barter.

Of course, in some developing countries with imperfect monetary system, such as Brazil, India, Indonesia, Zimbabwe, Argentina, Ukraine and Vietnam, the risk of currency devaluation is particularly serious. At this time, if there is a currency that can be used to avoid risks, such as mainstream currencies such as US dollar, euro, RMB, or cryptocurrency such as bitcoin, risks can be properly avoided. Some people support bitcoin in part because of this. Bitcoin and other cryptocurrencies can effectively help people avoid risks before a country's monetary system goes wrong.

Of course, some people may successfully transfer their property through cryptocurrency such as bitcoin, but these people will only be a small number of people. We should know that when a country's economy reaches that stage, there may be more serious problems than currency devaluation. Maybe many people don't understand this economic problem very well. They just think about it from the perspective of bitcoin and blockchain. They just see the value preservation of bitcoin. A country's monetary system is very important for the development of a country. The impact of currency war is no less than that of ground war. Cryptocurrency such as bitcoin has become a new battlefield of currency war.

Many people think that the continued issuance of US dollars has triggered the depreciation of US dollars, indirectly promoting the appreciation of cryptocurrencies such as bitcoin, so we should buy bitcoin to avoid the risk of currency depreciation. In fact, doing so just falls into the trap of capital. It may be a small thing for capital to take over the market, or even bring about a complete collapse of our economy and monetary system. In fact, the reason is very simple. The purchase of bitcoin will cause a large amount of capital outflow, which is similar to the Asian financial crisis of that year.

(2021-3-20)