| Currency occupies the central position in each country’s economic development.As a common sense, the currency policy is usually formulated by central bank. So memay as well call it a centralized currency system. This centralized currency systemguarantees currency sovereignty, high efficiency, stable running characteristics, etc.We cannot deny all the defects this centralized system makes with increasingproductivity, developing international trade and in-depth research on currencydevelopments. The centralized currency system represents defects such as wrongestimation about economy, unstable currency supply according to currency demand,spamming currency, inflation, etc.Economics scholars had a profound discussion on how to overcome issues causedby centralized currency system with monopolistic characteristics. The most famouseconomics scholar who showed great passion for the decentralized currency systemwas Hayek. He gave some interesting inventions such as establishing a total freecurrency system, introducing competition into currency system. As specific study ofsystem science develops, decentralized system gradually goes into scientists’ vision inrecent years. Systems science really has a profound impact on many disciplines,especially on computer science. How to achieve a practical method about creatingdecentralized currency system by logical and rational ways has become a challengingtarget for many scientists. As far as we know, weak worldwide economy growthtriggered by the2008worldwide financial crisis, serious inflation, unfair internationaltrade have not been alleviated. Bitcoin based on the P2P network was created under thebackground. Bitcoin is a typical decentralized currency which has properties, such asencryption-based electronic currency, gold characteristics, mining. Bitcoin isabsolutely the world’s first attempt to create a decentralized currency. Bitcoin hasswept the world in only five years, attracting famous international venture capital firms’attention, causing several governments set strictly limited conditions even prohibitionsabout using Bitcoin.This paper firstly researches literature on currency, and then reviews aboutdecentralized system; secondly, analyzes the drawbacks of traditional currency system,origins and developments of centralized currency system, and then make a comparison. thirdly, talks about the current situation about Bitcoin and other decentralizedcurrencies, and then about the reactions of some economic participants; finally, discussimpacts on tradition currency system and try to predict its future. This paper mayachieve such innovations: research on Bitcoin especially on decentralized currencysystem are in shortage since this is a cutting-edge academy, so this paper has a certainsubject innovation; existing studies are lacking the proof for Bitcoin whose totalamount is mathematically convergent, as a matter of fact, this paper will give a proofto this question; existing researches focus mainly on the mechanisms andimplementation path of Bitcoin, while this paper will give light to the impact onsociety.Under the world economic environment, this paper discusses the origin,development and characteristics of decentralized currency system based on Bitcoin,analyzes the impact of Bitcoin on economy, predicts the future of decentralizedcurrency system based on Bitcoin. We are so certain that the future of Bitcoin isuncertain. However, considering of Bitcoin as ancestor of the decentralized currencysystem, scientists are creating even better and advanced decentralized currency. Theabove research on decentralized currency system helps the society maintain andimprove the long existing centralized currency system. That’s where this paper canshow some implications and significance. |
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