Cryptocurrencies 300 Years Ago: Learn About John Law's Second Currency Consolidation

If tokens tend to get cheaper and people lose faith in them, how can they quickly or overprice them? 300 years ago someone to solve the problem.

At a time when there was no modern banking monetary system, John Law, who used gold and coins as his currency, first issued banknotes and used government bonds as the basis for buying joint-stock companies, causing the depreciation of the government. The bonds were very popular and allayed the concerns of the French government. In the numbers, however, some functional needs were not realized due to the limitations of the political environment at the time.

Now, 300 years later, the idea is made possible by the international monetary system to eliminate the gold standard and create a credit-based system similar to that seen by John Law.

In this article, we will explain how John Law wrote a "credit note" and tried to create an authorization token model.

let's see what happens

His background has been credited to John Law, who helped France track its debts when the French government was financially distressed and discouraged, and the money "opened up the time you received". the avatar.

1. Universal Bank

John Law first created the Universal Bank, proclaiming certificates that could trade gold at any time and that people could use commercially. The portability of the notes and the excellent solvency of the precious metals as collateral, together with the government's commitment to John Law did not affect the devaluation [LS1], and even at first John Law said that the paper of aluminum was needed. When the gold coins got 1% off, people started changing John Law banknotes.

2. Mississippi Company

After establishing North America and obtaining special rights for free trade from the French government, John Law founded the Mississippi Company, which later used "gold mining" as promotional material for Mississippi Company. Once he was placed in the Mississippi company, the fortunes of the company's products grew at the time. As public perceptions of wealth combined with rising stock prices, people created FOMOs looking for ways to buy commodities.

Mississippi Stock Chart

3. Where to start

John Law said all commercial buyers must purchase government contracts first and use them to buy commercial products.

Let's say you want to buy a million shares.

Seeing the real return on investment increase to 200%, people started buying contracts and commodities in large quantities, and in the open market, commodity prices rose up to 10 times face value. John Law and the government took advantage of this. Given the human FOMO sentiment, it announced an additional £1.5 billion worth of shares, 12 times the size of the previous two announcements.

The cost of a government contract, such as cancellation, is reinstated at a one-time fee by purchasing a new one with a government contract.

The government benefited from the sale of the treasury, Mississippi Corporation received the treasury, the company owed all that money, waived the government's default, and the government paid Mississippi Corporation 4% interest each year. The next 25 years.

4. Bank restructuring, debt replacement

The French government renovated the private banks of the Royal Banks and began to issue more banknotes. By the end of 1720, French banks had declared 3 billion pounds while the Royal Bank had only 700 million liters. It also pays interest, deferred expenses and defaults.

5. Follow

According to the equity balance calculation, even in the lower figure, Royal Bank's equity reached 16%, which is twice the value of Hyundai Bank as shown in the Basel Accord chart. Also, the first leap into Royal Bank was Royal Bank itself, which no bank could deny, neither the Bank of England at the time, nor a bank from the earlier period. . Because gold cannot pay the price. All trade in gold in France was definitively abandoned.

To prevent the company from collapsing, John Law announced a deflationary policy that would reduce the value of the Mississippi company's stock from 9,000 liters per month to 5,000 liters per month and reduce the number of shares by aluminum per month. However, the public lost faith in banknotes and commodities, and the company's market value continued to fall, causing the "Mississippi bubble" to burst.

Contents

Even if the end result is a failure, we can always go back to John Law's work, make some observations and compare it to cryptocurrencies.

The second stage of all planning is focus. John Law created the vision that "Mississippi companies will mine gold in North America." When people want to buy, John Law says the first prerequisite for buying a business is whether they should buy government contracts. buy commercial products.

John Law used human gold coins to invest in Mississippi companies to increase the value of their products and was endorsed by the French government to support the rights of Mississippi companies. North America. John Law reduced the French public debt by using big words to cover small ones, allowing people to buy large sums of government money and basic commodities.

Why do people buy John Law's bank account like cash?

1. Gold coins can be exchanged at any time.

2. Decline without government intervention

3. Valuable Hlau guarantee credit

4. Similar to gold coins

5. The government uses these fees to pay taxes.

Stablecoins, a feature of modern cryptocurrencies, can exchange 1:1 for US dollars at any time, and the behavior of the chain is decentralized and backed by US dollar reserves (such as USDT), which include also the absorption of corporate money. . The reasons for the two differ at first, but they are similar in that they quickly establish an agreement and increase the value of the funds.

Where are the reserves?

According to the data, people at that time did not use banknotes in real life, and the users were mainly organizations and businesses. Avoid big sales and marketing. This makes people more confident in the value of banknotes, and it can be seen that the reliance on large companies has led to the recognition of the value of banknotes.

The people below do not mind if they have enough money, there is no doubt that as long as they are owned and used by organizations with large sums of money and by the government and other agencies . The money will cause fear among the people, lead to the destruction of capital chains, in fact, John Law's plan ultimately failed.

Can you fix the problem now?

At the time, John Law was considering two things to solve the savings problem: the collection of direct tax from the French tax authorities and the collection of direct tax using banknotes. This was affected by the taxpayer system at the time.

In order to save money, the French royal family must follow the "tax inclusion procedure", and taxpayers have the right to collect taxes, and taxpayers only need to send income every year and the rest is written. And because he couldn't guarantee a proper tax return, John Law ultimately didn't address the issue of "tax evasion."

A major development in the cryptocurrency market today is the emergence of smart contracts, smart contracts allow us to realize the functionality of automatic tax distribution for all. commercially, it achieves the goal of eliminating third parties and making it more transparent, allowing people to access it. This system makes it more reliable, easier to set up John Law Loans.

Regarding the storage problem, the current stablecoin algorithms are complete and solve John Law's problem. If you are not using fiat or cryptocurrencies as a medium, we have managed all token products by algorithms and smart contract. Working well, their financial management policy is similar to that of a central bank financial management system, and it is easier to manage the platform.

The reason for the subsequent decline in the value of John Law tickets is jet lag. It is used to provide a variety of solutions that can drain water and support it. When the fluids are fine, you might think. The parties can agree that the agreement does not move by introducing the Olympus mechanism in the next phase, in order to reduce expenses.

Back in 2022

We see the industry creating a vision for people after the escalation of many ICO projects: "The involvement of ICOs will be very rewarding." In the meantime, the exchange and the parties are working together to launch an IEO, and the products developed by the exchange for its users have been reviewed and displayed on the counter.

There are two similarities to those who buy the John Law bill. One is to measure the value of the token and the other is to accept (exchange) the law.

Specifically, let's take the example of IEO joining Binance. You must have at least $50 BNB in ​​your account to join Binance IEO. Each $50 BNB can be exchanged for one ticket and the account can hold up to 10 tickets.

People buy $BNB to increase the price, and $BNB is as effective as IEO Notes. The principle of participation in the purchase of shares of the Mississippi company is that one must buy one of the national expenditures as entrance tickets, both of which serve as "tickets" to obtain the second right.

The difference is that the main purpose of the law at the time was to increase the value of government bonds, so it was forced to choose the "financial-financial-equity" method and get the right payment . To complete the second round of domestic token integration more than now, the currency platform goes one step further and even supports token creation.

A new type of token system

In return, the company John Law merged with was a collection of the Federal Reserve and U.S. Treasury, handling all matters of filing, collection of taxes and national debt, and stock sales for absorb the government's old usurious debt.

Parties can now refer to this template to create their own token system.

To do this, as an example, we develop the following set of token organizations:

The first token includes:

1. Stablecoins

Objective: Set up organizations so that they can benefit from a “copyright”: a stable and reliable payment medium;

In the beginning, you could use fees to get car users like John Law's banknotes. The value of the stable value against the monetary platform does not affect the performance of the team.

2. Currency platform

It is equal to the shared profits of the platform. In terms of functionality, the platform ecosystem chain related to payment processing and service costs in the ecology, the value of the platform currency depends on the strength of the team, so help These people need to go to work. The for-profit company Binance provided a complete example of supporting the benefits of the platform and gave plenty of room for thought to turn the "secret" into "special tokens".

3. Project Currency

The tokens provided by the green project side, the performance and value of the tokens are generally affected by the project side. The project is autonomous provided that it meets ecological standards.

Our parts are interconnected for support.

For example: project currency and linked platform currency (IEO), project currency and fixed equity (contract), integration by different design is used to control the management and benefits of the organization.

Picture of our relationship

Although this model has also been endorsed by John Law and Binance regarding the effectiveness of financial retention, most organizations are unable to support this model due to their lack of cooperation like French or Binance to set up. Connect 3 pieces.

What are you saying?

No country or company can function without a design without its own resources. The starting capital must be used to make the starting oil. The first French capital was the people of the monopoly country, and the initial capital was the exchange capital of Binance. , France has bolstered Mississippi companies with a venture capital exchange, while Binance has added real value to its partners' open platform so that the token is no longer an empty shell. Regular exchange, completion of connection to the token system.

So for organizations, my personal recommendation is to gather their resources, find out what our coins do, and then find ways to contribute, interact with other coins, and use the exchange of funds to advise each other regularly. When attaching the token, it uses its own token function and gradually recognizes the function of the model.

epilogue

So back to the first question. If the price of the token continues to drop and people lose faith in the token, how can the token quickly meet or exceed its value? Perhaps referring to the practice of John Law 300 years ago, this is a way of trying to re-authorize by exchange.

The story is always the same, but ideas should never be locked into reality. Crypto has great performance in theory. What we need to do is not only think about the problems that history has left us, but also build our own technology.