What is the currency standard and the gold standard? Is it better to play on the currency standard or the gold standard?

Dec 07,2022
What is the currency standard and the gold standard? Is it better to play on the currency standard or the gold standard?

The development of virtual currency contracts is gradually diversified. Most investors are not familiar with the currency standard contract and gold standard contract. The currency standard contract is a virtual currency contract that uses the currency as the unit of billing, trading and settlement. It is a kind of permanent contract, and was previously known as the reverse contract. The gold standard contract should be a monetary system in which gold is the standard currency. The biggest difference between the two is the difference in the security fund used. So, what is the currency standard and gold standard? Is it better to play on the currency standard or the gold standard? Next, let's have a look.

What is the currency standard and the gold standard?

Currency Standard:

Generally speaking, the virtual currency based thinking mode should be based on mainstream currencies such as Bitcoin or Ether. In the transaction, the transaction pair of mainstream currencies such as Bitcoin or ETH is generally selected to build or sell.

For people with currency based thinking, the important purpose of transaction is to obtain more virtual currency.

For example, in the downward trend, although the total value of assets has become less converted into French currency, if the number of Bitcoin has become more, it is also profitable for people with money based thinking.

If in the upward trend, even if the total value of assets is converted into French currency more, the number of Bitcoin is less in operation, and people with money based thinking are not profitable.

Generally speaking, people with money based thinking take making money as the first priority, and decide whether a good transaction is good or not by increasing or decreasing the amount of money.

Gold standard:

This gold standard does not refer to the gold standard, but refers to the legal currency as the standard. During the transaction, the USDT trading pair is generally selected to build a position or sell.

This is relatively simple, which is to take earning legal coins as the first priority, and determine whether it is a good transaction based on the increase or decrease of legal currency assets.

These two ways of thinking also have their own typical representatives. Li Xiaolai, the representative of the currency standard, thinks that if he is rich, he needs to buy money, which is the realization;

On behalf of the gold standard, Mr. Bao believes that Bitcoin must be sold, not become a servant of Bitcoin. Happy life is the goal. He is now living a happy life in the Leek Manor in Silicon Valley.

Is it better to play on the currency standard or the gold standard?

1. Currency standard

The choice of currency standard: The best currency should be selected first. At present, Bitcoin is the most selected currency with the strongest certainty and stability.

From the historical trend of Bitcoin, compared with other counterfeit currencies, in the upward trend, although Bitcoin is not the most powerful currency in the short term, in the long run, Bitcoin can outperform all currencies, with the largest increase;

In the downward trend, Bitcoin is very resilient. In this bear market, Bitcoin has declined by less than 85%, and many counterfeit coins have declined by more than 99%, close to zero.

Don't choose the counterfeit currency as the standard, because the uncertainty of the counterfeit currency is too strong, once the project fails, it is likely to cause you heavy losses, and there is a risk that the capital will return to zero.

Advantages of the currency standard: historical records confirm that in the long run, Bitcoin is an asset deflation industry with a value saving function. Therefore, while the French currency is depreciating, the hedging effect of Bitcoin makes it continuously increase in value.

Disadvantages of the currency standard: There are two disadvantages of the currency standard.

First, in the market trend, if the property of currency standard is converted into the property of legal currency, it may continue to shrink, and investors may feel bad and their mentality may collapse;

Second, we need legal coins for our life and consumption. Bitcoin is not suitable for daily transactions because of its strong volatility and legal uncertainty, and can only be stored as a kind of property.

2. Gold standard

Advantages of the gold standard: First, it is more consistent with the traditional investment thinking mode, feeling that cash is the real property. Second, cash is the key transaction in life, which facilitates consumption and improves the quality of life.

Disadvantages of the gold standard: In the long run, cash has been falling in price, and the consumption power is getting weaker and weaker. In terms of consumption power, 100 yuan in 1977 was equivalent to 40,000 yuan now, and the inflation was 100 times.

The advantages of the currency standard lie in the positive deflation, appreciation expectation and value storage function of Bitcoin, while the disadvantages lie in the traditional way of thinking and the inconvenience of daily transactions; The advantage of the gold standard is that it conforms to the traditional way of thinking and is convenient for daily consumption. The disadvantage is that the legal currency continues to inflate, and its role in value storage is weak.

Speaking of this, I believe you have a certain understanding of the currency standard, gold standard, and which one to choose for playing contracts. In general, these two types of contract transactions can help investors to obtain benefits. There is no best. Both the currency standard and the gold standard stand side by side. They are both for asset appreciation, but the currency standard is longer and the gold standard is more timely. It mainly depends on how investors grasp the market trend. The thinking mode of speculation is very important. On the basis of correct value cognition, a reasonable thinking mode can make you stand in a higher perspective.