Wanton skyrocketing 120 million times! Who will manage the bit

In recent years, with the rapid development of financial technology, to Bitcoin as the representative of a series of digital currency gradually into the people's vision. China Fortune Network survey found that although there are many people in the country had a bit of currency investment transactions, but in fact its understanding is not in-depth. Some people think it is money, some people think it is investment goods, and some people think it is a virtual currency, then what is the special currency it?

Is the currency?

Bitcoin ( BitCoin) since its inception in 2009, it caused a lot of controversy. At first, the focus of debate was that Bitcoin was not a scam, and now we are discussing whether it is the mainstream currency of the future.
　　Before the Austrian School of Economics, because the bitcoin has a constant total, to the central and other characteristics, the future will break the border, become a kind of borderless currency. In addition, because the bit coins in English writing with Coin the word, so many people will understand it as a coin, that is, we usually say the money.
　　However, in 2013, the central bank and other five ministries jointly issued the "notice" clearly pointed out that although the bitcoin is called "currency", but because it is not issued by the monetary authorities, there is no legal and mandatory monetary properties, Is not the real meaning of the currency. From the nature point of view, Bitcoin should be a specific virtual goods, do not have the same legal status with the currency, can not and should not be used as a currency in the market circulation.
　　China University of Political Science and Law Financial Innovation and Internet Financial Law Research Center Deputy Secretary-General Zhao Harrier said that China's wealth network is not the currency of traditional economics, something to become a currency to have value scale, storage means, payment media and other three Function, and Bitcoin does not have. First, the price volatility of Bitcoin is about 30 times higher than that of gold , and the price fluctuates so much that nature can not be used as the standard. Second, the second currency will not get the risk-free interest except the price volatility. The payment process is about 20 minutes, in the general shopping environment, people will not wait so long. Therefore, Bitcoin can not be used as the currency of our daily life.

Is the premium investment product?

If Bitcoin is not a currency, what is the bit currency ? The explanation given above is that the bitcoin is a virtual commodity. And as a commodity will naturally produce trading transactions, "notice" that the general public at their own risk under the premise of free to participate in the sale of Bitcoin, but the departments and financial institutions, payment agencies should correctly view the virtual goods and virtual currency, Reasonable control of investment risks, and guide the public to establish the correct concept of money and investment philosophy.
　　Bitcoin as a virtual currency, at the beginning of its launch does not have any price. However, in May 2010, an American named Rachel Hornez, with 10,000 bits of currency in exchange for a $ 25 pizza, which makes the first currency with a price - 0.25 cents / Pieces. And now a bit of special currency are about 3,000 US dollars or so, that is , about 8 years time, Bitcoin prices soared 1.2 million times.
　　This kind of skyrocketing not only makes the early bitcover players unforgettable, but also attracts more people to start paying attention to the variety of transactions, the data show that the world has nearly 60 million people in the bit currency investment transactions.
　　"I bought earlier, then only 1000, then did not take long to rise to more than 8000, almost every day can rise 30% -40%." Bit coin senior player Sun Zeyu said to China Fortune Network, in the bit currency transactions in the most Memorable or the price of the skyrocketing, with the transaction for a long time, the short-term fluctuations in the special currency has been accustomed to. In addition, he believes that since the bit currency transactions are 24 hours a day, and they are risk preference type of investors, the future he will continue to conduct bit currency transactions.
　　Digital currency watcher Xiao Lei believes that, as Bitco currency prices fluctuate, and the current trading market has not yet included in the regulatory system, therefore, investment in special currency investors need to have a strong risk awareness and risk tolerance. From the current trading volume of Bitcoin, it is already an internationalized trading variety. For those who like high volatility, Bitcoin can meet the advantages of quantitative trading and hedging transactions.
　　At the same time, the coin network COO Zhu Jiawei also stressed that Bitcoin is a high-risk high-yield investment products, which by the short-term factors affect the price fluctuations, investors should be in the range of affordable control, but long-term In terms of the total amount, the bitcoin has a certain investment value.

What is the risk of Bitcoin?

In addition to the above bit currency transactions, the price of high volatility will give investors a certain risk, in fact, investors are also facing the security of Bitcoin and trading platform information opacity and other risks.
　　In recent years, with the bitter currency prices continue to rise, large-scale special currency trading platform is often hacked. Such as: February 2014, when the world's largest bit currency trading platform Mt.Gox was stolen 850,000 bits of currency, followed by bankruptcy; last year in August the bit currency trading platform Bitfinex value of more than 60 million US dollars of bitcover stolen. While the current trading volume of China's Bitcoin has accounted for 80% of the world , which means that future hackers choose the domestic bit currency trading platform to attack the possibility of increasing. In addition, with the constant concentration of Bitcoin, foreign research institutions also found that some trading platforms exist with the mine collusion and joint Zuozhuang data characteristics, which give Bitcoin investors a greater risk.
　　In fact, there are some risk factors in the currency itself. With the use of Bitcoin and the number of transactions on the block chain more and more, 1M block size has become a bit of currency development bottlenecks, resulting in Bitcoin network congestion problem is increasingly serious, in order to break through this bottleneck, Bit Coins community A variety of expansion programs, but in many programs, there must be a program to get enough computing power to support the successful activation of isolation witness, Bitcoin to avoid the risk of bifurcation. Otherwise the bit currency bifurcated, it will form a variety of different bit currency.
　　However, as of July 21 at 11 o'clock, SegWit2x expansion program support rate has reached 90.3%, which also makes the market generally believe that the probability of bitcoin will not happen hard bifurcation, but through the soft fork to achieve smooth upgrade expansion.
　　In addition, the data show that the current global trading in the state of the digital currency up to 140 or more, according to the global block chain market value of the market, bit market value far more than other block chain project, its global digital assets in the share of nearly 50% , But the block chain as a new technology, with its continuous development, is likely to produce more high-quality digital currency, therefore, Bitcoin there is a risk of being replaced.
　　For other risks of Bitcoin, Zhao Harrier believes that bitcoin is anonymous and difficult to track, so Bitcoin may become a channel for capital flight. If the bit currency collides with the underground bank, then the money will be easy Was transferred abroad. After a lot of criminals is also the use of Bitcoin anonymity, the whole network circulation, not subject to national boundaries to carry out money laundering and illegal transactions to pay.
　　For this reason, the central bank and the relevant units formed a joint inspection team, since January 11 this year , entered the domestic fire coins, currency line, Bit Coin China and other three countries of the largest bit currency trading platform, whether the enterprise over the scope of business, whether or not Licensed or unlicensed to carry out credit, payment, exchange and other related business; whether there is market manipulation; anti-money laundering system to implement the situation; funds security risks such as on-site inspection.
　　Zhu Jiawei said, "From the central bank stationed in the inspection, the platform to do a lot of rectification, including: to strengthen the user due diligence and authentication, anti - money laundering system upgrades, inhibition of the use of Bitcoin and other digital asset transactions on the platform for illegal activities. In addition, he said the platform has been in January to stop the leveraged business, then the transaction levy two thousandths of the fee.

How does digital money be regulated?

As a bit currency as the representative of the digital currency is not included in China's regulatory system, and in the more relaxed regulatory environment, there have been many industry chaos. With the regulatory authorities settled in the domestic trading platform, standardize their business, can not set aside the financing of currency, can not be class futures trading and other red lines, the industry chaos has been reduced.
　　But Xiao Lei pointed out that many transactions are still in a gray area, OTC market investors can not be guaranteed benefits. There may be two aspects of the future regulatory thinking, on the one hand is the supervision of special currency and other trading platforms, on the other hand is the regulation of digital currency issuance ( ICO), use, and value-added part of the tax.
　　And Zhao Harrier believes that if the government will be more than the currency into the financial supervision, recognition of the financial properties of Bitcoin, such as "digital assets" or "digital currency", which will strengthen the public to accept the currency of the belief, reduce the public to accept the threshold of Bitcoin, Which will weaken the public for the legal currency and its financial system of confidence, but raised the value of Bitcoin, speculation as a surrender of the price of special currency.
　　In addition, he also said that for the anonymous and P2P network characteristics of the bit coins community effective regulation also need some technical capacity, a waste of valuable regulatory resources for the extremely "niche" of the bit coin community is worth it, open to question.

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