Bitcoin's international legitimacy

1. bitcoin is a kind of P2P digital code. Bitcoin does not rely on specific currency institutions to issue. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions. The decentralized characteristics and algorithms of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin by mass manufacturing
bitcoin lacks stability, so it doesn't have "inherent value", it's just a virtual proct. If we recognize its legitimacy, it will have a significant adverse impact on the banks of all countries, and even can replace the currencies of all countries. Finally, a few people will manipulate the world's monetary system, which is a very dangerous existence. It's not money. Whether it's legal or not depends entirely on whether a country recognizes it as legal or not< At present, the United States, China and South Korea all think it is not a currency. Among the big countries, bitcoin is only recognized as the "unit of account" by the German Ministry of finance, but it is only a unit of account, which does not mean that it is mainly a currency.

2.

although bitcoin still has great risks, after years of development, with the increase of its application population, application scenarios and application technology, no country or organization can completely eliminate it. If you can figure it out, it is likely that countries will generally accept bitcoin and embrace it

according to my personal judgment, bitcoin, after a period of continuous development, is likely to become a world currency in the future, which can play the role of electronic gold and become the target of the value of other sovereign currencies. From this perspective, bitcoin can be used as a means of asset preservation in the future when inflation is inevitable

3. In a sense, the outbreak of internet currency represented by bitcoin and other digital currencies is more subversive than any other form of Internet finance. On August 19, 2013, the German government officially recognized the legal "currency" status of bitcoin, which can be used for tax payment and other legal purposes. Germany has become the first country in the world to recognize bitcoin. This means that bitcoin has begun to "wash white" graally, from the Geek's plaything to the public's attention. Perhaps, it can give birth to a real Internet financial empire.

4.

Bitcoin is illegal in China

since September 4, 2017, China has expressed its opposition to the virtual currency exchange. On the market, large-scale exchanges are graally fading out of the domestic market. Some of them are going to Japan and some of them are going to Nanyang. Of course, with the release of new regulations in Hong Kong in early November, we believe that in the future, the virtual currency exchange may obtain a legal license in Hong Kong to serve local institutional investors

extended information:

bitcoin China said that the platform will stop withdrawing cash. So far, bitcoin China has closed all transaction functions. The other two bitcoin trading platforms in China, huocoin.com and okcoin, have also stopped trading all digital assets against RMB

the virtual currency represented by bitcoin has soared, attracting a large number of ordinary people without any technology and investment knowledge to enter this high-risk market

the central bank, together with many ministries and commissions, issued the announcement on preventing the financing risks of token issuance (hereinafter referred to as the announcement), which pointed out that no organization or indivial may engage in the financing activities of token issuance illegally According to the announcement, all kinds of token issuance and financing activities should be stopped immediately from the date of issue

the organizations and indivials that have completed the token issuance financing should make arrangements such as liquidation, reasonably protect the rights and interests of investors, and properly handle the risks. Relevant departments will seriously investigate and deal with the activities of token issuance and financing that refuse to stop and the illegal behaviors in completed token issuance and financing projects

the China Internet Finance Association issued the "tips on preventing the risks of bitcoin and other so-called" virtual currency ", pointing out that bitcoin trading platform is a tool for money laundering, drug trafficking, smuggling, illegal fund-raising and other illegal criminal activities e to the expanding number of stakeholders and strong speculative atmosphere; There is no legal basis for the establishment of various so-called "currency" trading platforms in China

5. At present, the concept of bitcoin is too advanced to be popular as the mainstream currency in the world. This is e to the political and economic factors of various countries
2. For the time being, the world's major powers will not declare bitcoin legalization within 20 years, because the rules for the issuance and generation of bitcoin are not in the hands of national willers, but rather operational rules. It's its genes
3. Many people firmly believe that bitcoin is limited. Maybe one day they will find that bitcoin is not limited. It's just that capital speculation needs a concept and a means.

6.

Bitcoin is illegal in China

according to the "notice on preventing bitcoin risks" issued by the people's Bank of China on December 5, 2013:

bitcoin has four main characteristics: no centralized issuers, limited amount, no geographical restrictions and anonymity. Although bitcoin is called "currency", it is not a real currency because it is not issued by the monetary authority and has no legal compensation and mandatory monetary attributes. In nature, bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and can not and should not be used as currency in the market

at this stage, financial institutions and Payment institutions are not allowed to price procts or services with bitcoin, buy or sell bitcoin as a central counterparties, underwrite insurance business related to bitcoin or include bitcoin into the scope of insurance liability, and directly or indirectly provide customers with other services related to bitcoin, including: providing customers with bitcoin registration Trading, clearing, settlement and other services; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin and RMB and foreign currency exchange services; Carry out bitcoin storage, custody, mortgage and other services; Issuing financial procts related to bitcoin; Take bitcoin as the investment target of trust, fund, etc

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the risk of bitcoin

1, higher speculative risk. Bitcoin trading market capacity is small, trading 24 hours in a row open, there is no price limit, the price is easy to be controlled by speculators, resulting in dramatic fluctuations, great risk. Ordinary investors blindly follow suit and are easy to suffer heavy losses

2. Higher risk of money laundering. Due to the anonymity and geographical freedom of bitcoin transaction, its capital flow is difficult to monitor, which provides convenience for money laundering and terrorist financing activities

3. The risk of being used by criminals or organizations. As of December 6, 2013, there have been international criminal activities such as drug and gun trading using bitcoin, and relevant cases have been investigated and dealt with

7. No one will admit that a currency supported by a country does not necessarily make it recognized by the global market. As a common currency, the US dollar's competitors in the world still have euro, pound, RMB, yen and other complex economic systems, while bitcoin has no guarantee behind it. It is widely recognized that gold reserves, technical content, economic aggregate, military strength, national reputation and so on are the direct factors to measure whether a currency will be accepted by the world. If there is a war, who will use your virtual currency to trade arms, grain and technology. Therefore, bitcoin, as a global unified virtual currency, is only used at the virtual level, legalized or licensed, just like the current q-coin. However, to really apply it to real life, more people and more money must be invested in order to initially establish small-scale goods trading. Large scale, such as oil, instry, machinery, shipbuilding, aerospace, weapons, Large Hadron Collider, particle accelerator, Tokamak device, and even the basic necessities of people all over the world, you will find how ridiculous it is to use virtual currency. Even if it is possible, it will take time to accumulate. Only when people invest hundreds of years of money into bitcoin, which is more than the wealth in the hands of today's global people, can it be stabilized. The gains outweigh the losses, which is more difficult than global unification. Even if the as like as two peas in the world, the same currency will exist, and the existence of the same currency will be the same as that of online banking.

8. As an electronic currency, bitcoin has not been recognized by China, but it has been recognized by many countries in the world. It was first invented by Nakamoto of Japan. Like other currencies, bitcoin can be used to buy goods and services. Moreover, bitcoin does not have a central issuing agency. It can also be traded all over the world through the Internet. All transactions are anonymous, leaving no identity information of traders. What's more, bitcoin is also popular all over the world as a hot investment proct.