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#SERO DOT#ETH BTC#ADA SOL#XRP LTC#UCON Start sharing the topic of finance
A rich person must understand finance. Do you understand finance? The main core of traditional finance is insurance, banking, and securities. Finance is the core of human operation, the establishment of productivity and production relations. Social development requires incentive mechanisms, and the most critical aspect is circulating currency. We do not need to fully understand the operational model of finance, but you must understand the value of money.
Money itself has no value; its value is a form of credit granted by the government's issuance of currency, with the greatest value lying in government credit. Do you understand? The face value of this currency is a credit certificate, which you can use to exchange for any item in the world, or to purchase various needs and services of humanity, right?
This type of fiat currency is based on the stability of the country and the state of economic development, adjusted under different conditions, whether to increase or decrease interest rates. Withdrawing liquidity increases interest rates, while releasing liquidity decreases interest rates. The essential meaning is that circulation generates value, achieving the construction and realization of productivity.
So why has cryptocurrency developed so quickly? It is a monetary system independent of centralized governments, and its credit is built on a consensus system of decentralized governance, a public ledger. Cryptocurrency itself has no value, so why does it have value? It is because the credit system gives it value, do you understand?
Cryptocurrency is still in its early stages, and in the future, a global financial system will be realized. This system will be more sustainable and resilient to risks, belonging to a globally integrated financial system. What defines rules and institutions is simply the logic that everyone agrees upon; rules are established through blockchain technology.
Human society pursues fairness, justice, and transparency. Rules that align with human nature are the reasonable rules. Do you agree?
That's all for today.
Thank you to all the partners for their serious study.