Bitcoin consolidation

1. In China, no competent department has made clear its position on bitcoin, which leads to its crazy and disorderly development in reality. Some websites use bitcoin to engage in illegal activities such as gambling and foreign exchange trading. There are also some websites using bitcoin for illegal fund-raising or fund-raising fraud. On October 26, 2013, the website of GBL bitcoin trading platform registered in Hong Kong was closed, and the relevant operators disappeared. The platform has previously attracted a large number of investors to invest in bitcoin
at present, the disorder of bitcoin trading in China needs to be cleaned up and rectified. This kind of clean-up and rectification has sufficient legal basis
1. The "transaction" and "circulation use" of bitcoin violate the law of the people's Bank of China of the people's Republic of China. Article 16 of the law clearly stipulates that "the legal currency of the people's Republic of China is RMB", and the institution that "issues RMB and manages the circulation of RMB" is unique, that is, the people's Bank of China; Article 20 stipulates that "no unit or indivial may print or sell token tickets to replace RMB in circulation on the market.". In fact, bitcoin has the function of "token", and the network platforms and merchants that conct bitcoin transactions have violated the provisions of the law, which should be investigated and dealt with in accordance with the law
2. Bitcoin's "trading" and "circulation and use" violate the foreign exchange regulations. Article 3 of the regulations clearly defines that "foreign exchange refers to the following payment means and assets expressed in foreign currency that can be used for international settlement, including foreign currency payment vouchers or payment instruments, including bills, bank deposit certificates, bank cards, etc.". Article 8 clearly stipulates that "the circulation of foreign currency is prohibited within the territory of the people's Republic of China, and foreign currency shall not be used for valuation and settlement.". Article 45 clearly stipulates: "those who buy or sell foreign exchange without permission, in disguised form, buy or resell foreign exchange, or illegally introce foreign exchange to buy or sell a large amount of foreign exchange shall be given a warning by the foreign exchange administration, their illegal income shall be confiscated, and a fine of less than 30% of the illegal amount shall be imposed; If the circumstances are serious, a fine of not less than 30% of the illegal amount shall be imposed; If a crime is constituted, criminal responsibility shall be investigated according to law. ". Bitcoin, as an international means of payment recognized by many countries, should be subject to the regulation. Websites and businesses engaged in bitcoin trading and use should be investigated and dealt with in accordance with the regulation< Third, bitcoin does not belong to the "virtual currency" defined in Chinese laws and regulations. Many bitcoin trading platforms claim to operate legally according to the relevant laws and regulations of China's "virtual currency", which is wrong. In 2009, the Ministry of culture and the Ministry of Commerce issued the notice on strengthening the management of virtual currency of online games, which clearly defined: "the virtual currency of online games mentioned in this Notice refers to the virtual currency of online games issued by online game operation enterprises, which is directly or indirectly purchased by game users using legal tender in a certain proportion, and exists outside the game program, It is a virtual exchange tool that is stored in the server provided by online game operators in the form of electromagnetic records and expressed in specific digital units. " The "notice" also makes it clear that "the use scope of online game virtual currency is limited to the virtual services provided by the issuing enterprise itself, and shall not be used to pay for, purchase physical procts or exchange for any procts and services of other enterprises". Bitcoin is not issued by game enterprises, and it can be exchanged for physical and currency. It can be seen that bitcoin is completely different from this kind of "virtual currency" and does not belong to the "virtual currency" stipulated by law. Even if it is engaged in the trading service platform business of "virtual currency", it is necessary to apply to the cultural authorities for the establishment of an operating Internet cultural unit for administrative license in accordance with the provisions. In the application report, it is necessary to specify the service (platform) mode, user purchase method (including cash, bank card, online payment and other purchase methods), user rights and interests protection measures, user's rights and interests protection measures Binding of user account and real name bank account, technical security measures, etc
so far, no bitcoin trading platform has obtained and is unlikely to obtain such administrative license
4. Bitcoin trading platform violates the telecommunication management regulations such as the telecommunication management regulations and the measures for the administration of Internet information services, which constitutes "illegal business operation"
Article 7 of the regulations on the administration of telecommunications clearly stipulates that "the State implements a licensing system for the operation of telecommunications business according to the classification of telecommunications business. In order to operate telecommunication business, a telecommunication business license issued by the competent department of information instry under the State Council or the telecommunication administrative agency of a province, autonomous region or municipality directly under the central government must be obtained in accordance with the provisions of these regulations. No organization or indivial may engage in telecommunications business without a telecommunications business license. " Internet information service is one of the value-added telecommunication services restricted by the law Article 4 of the measures for the administration of Internet information services stipulates that "the State shall implement a licensing system for operating Internet information services; The non operating Internet information service shall be put on record. Those who have not obtained permission or have not gone through the filing proceres shall not engage in Internet information services. " Bitcoin trading platform collects "transaction fees" or "withdrawal fees" or engages in "related advertising business", which belongs to "operating" Internet information service business
bitcoin trading platform has neither obtained nor is it possible to obtain "operating license for operating Internet information service business", and some websites have not even put it on record. This behavior constitutes "illegal business operation" according to law, and should be investigated and dealt with according to law< 5. Those who use bitcoin to engage in gambling, money laundering, bribery, fund-raising fraud and other illegal acts shall be punished in accordance with the relevant provisions of the criminal law of the people's Republic of China. Bitcoin's "value function" and "use function" make it become the "object element" of criminal behavior, and the criminal behavior related to bitcoin should not be placed outside the legal jurisdiction
no one can say for sure what the future of bitcoin will be. However, under the current financial management system of "foreign exchange can not be freely circulated and exchanged" in China, with the high incidence of corruption and economic crimes, it is impossible to seek the legitimacy of bitcoin trading platform, and it is sooner or later to clean up and rectify bitcoin trading platform. However, the sooner things come, the better. If they are delayed, more bitcoin trading platforms will collapse, more "investors" will lose all their money, and a large number of cases of "illegal business operation crime", "illegal fund-raising crime" and "fund-raising fraud" will be investigated to quell public indignation
if the relevant authorities think these bitcoin trading platforms are legal, they should also make a clear statement to give the operators of the relevant platforms a "talisman" to avoid "settling accounts in the future"
quoted from lawyer leiteng's blog

2. Maybe everyone has a dream of "getting rich overnight", but no one has ever thought about "going bankrupt overnight"
in fact, this does not mean much to us. After all, we have never experienced "sudden wealth". How can we talk about "bankruptcy"
bitcoin can be regarded as an imperial presence in virtual currency, and the price of each one is amazing
after bitcoin plummeted some time ago, I saw a very interesting passage:
a friend in the coin circle was still talking about buying a house in the second ring of the imperial capital last year. When I met him today, he said to me: Hello, this is your take out
people who once relied on bitcoin and were worth billions of dollars have fallen to this point in just a few days. How can we not let people sigh
12% in a day, 42% in a month, 77% in a year, and 1.6 trillion in evaporation, no less than the magnitude 10 earthquake
bitcoin, which has doubled 25 million times in the past eight years, has now become a boundless hell struggling to survive
at the end of 2017, the high price of US $20000 was amazing,
10 bitcoins can buy a Mercedes Benz S500,
100 bitcoins can buy a three bedroom apartment in Shenzhen. It doesn't look like much, does it
but in 2009, one dollar could buy 1309 bitcoins. Do you think you missed dozens of billions
however, as we approach the end of the year, bitcoin has become a sad and helpless topic
at the beginning of bitcoin's decline, most people scrambled to get the bottom, but did not think that it was like jumping into an endless abyss, the bottom was broken again and again, and it was just between your thoughts that you lost everything
for the sadness of currency speculation, those who don't will regret it even more
in the past 11 years, I knew that someone had asked for 6800 financial procts on hand
but in the end, instead of buying bitcoin, she spent it traveling
if you buy it, it will be worth about 100 million at the end of 17! Even if it's 4000 dollars, there's 20 million
it turns out that most of the time, we just miss hundreds of millions of properties, but we don't know it
if we want to make money, the stock market and real estate market are all weak, where can we compare with the bitcoin market
of course, some people have studied that every sharp fall of bitcoin will predict the next sharp rise:
in November 2011, US $30 fell to US $2, a 93% drop
in December 2013, it dropped from $1166 to $170, a drop of 85%
since 2017, it has fallen below $4000, a 77% decline
it means that every fall will be followed by a more violent rise
however, many people will suffer from Stockholm syndrome after being locked up. The more they are locked up, the more convinced they are of the scarcity of bitcoin, and then they will surely usher in a ten thousand times soaring future
after all, most of the time, people who rely on bitcoin to make a fortune are not willing to believe that they will lose money
stock god Warren Buffett once warned us: bitcoin is a mirage, a way to transfer funds, and the quadratic power of rat poison. Cryptocurrency has no bottom. What you can do is to stay as far away as possible
we don't know whether bitcoin will continue to fall or soar overnight in the near future. All we can do is wait and see
admission? It depends on your own choice. After all, every financial management has its own risks
be cautious when entering the market. This sentence is not only applicable to the stock market, but also to the bitcoin circle
but as the saying goes: if you are brave enough, if you are hungry enough, you can decide for yourself! Mi Xiaoli, a new way of life.

3.

Recently, the news about "China quietly ordered the closure of bitcoin mines" spread like wildfire. Some media learned through insiders that the central bank held a closed door meeting to rectify some mines with non-standard electricity consumption

in fact, the rectification and treatment of Mines started last year, especially after the closing of domestic exchanges last year, the relevant regulatory authorities also discussed the issue of mine retention, but the conclusion is that the reasons for closing mines are not sufficient, and the mines have not caused more social problems, and the risk points are not clear, so no specific arrangements have been made. However, all localities have received "window guidance", that is, local enterprises can not participate in digital currency mining

in 2016, China's power generation ranked first in the world, and the total power generation accounted for 25% of the world. In this case, according to common sense, mining power in China is indeed the most abundant, especially with the decline of China's economic growth, the wasted power resources are increasing

the electricity of power stations can not be stored, but if the electricity is converted into digital currency, it can be stored. In fact, if China's surplus power generation can be converted into bitcoin for storage, it should be the most efficient mode of proction and operation. It is equivalent to procing US dollars with electricity. It is a processing export mode with the highest added value

in addition, according to the historical development, most of the power in the future may be consumed by computers. This is a judgment I made, which can be witnessed by our generation. In our daily life, the proportion of electricity consumption will be lower and lower. In the future, mankind will solve all kinds of problems by means of digitization and blockchain, and "mines" will only increase, not decrease. Especially with the development of artificial intelligence, space exploration and other fields, the demand for computing power will increase exponentially

electricity is just a kind of energy, just like a person, the biggest energy consumption is not the limbs, but the brain. The human brain is a 24-hour machine. A thinking person's brain consumes 75% of the liver's stored blood sugar every day, and the oxygen consumption accounts for 20% of the whole body's oxygen consumption. The more the brain thinks, the more glucose the neurons need

When the electric lamp was invented 200 years ago, people thought that the best use of electricity was to light the bulb. Has the final say that what electricity market will be most effective in future? p> No one can see electricity. Up to now, it is difficult for many people to understand the mystery of its existence, but electricity has changed the world. The influence of many virtual things is often greater than that of physical things. What does "digital assets" mean to China and the world? I think it is difficult for many people, including the government, to make clear at this time. What we need to reflect on is that apart from the four great inventions, such as electricity, light, telephone, computer, digital currency and so on, how many of the things that are pushing mankind forward are invented by China

when a phenomenon appears, we must study the background and logic behind it. The future competition can be said to be military competition, economic development competition and financial competition, but it can also be said to be ideological and computational competition. It's easier to close mines than to stop trends

4.

On March 8, Japan's financial regulator punished several cryptocurrency exchanges, including ordering two of them to suspend operations for a month. Coincheck Inc, a big cryptocurrency platform in Japan. The penalty is part of new restrictions imposed by regulators after $530 million in thefts

According to the regulator, seven cryptocurrency exchanges, including coincheck, lack proper internal control mechanisms and need to submit business improvement plans by March 22. Coincheck said in a statement that the company would take the penalties seriously and strive to regain the trust of its customers

5. Because it is a kind of virtual currency and exists on the Internet, it has great risk, instability and uncertainty. Bitcoin is not issued by the central bank. It is a proct of the Internet.

6. Bitcoin risk 1
at the end of October 2013, Hong Kong GBL platform absconded with money, and the whereabouts of more than 20 million RMB were unknown
on the evening of February 28, 2014, the operator of mt.gox, the world's largest bitcoin exchange, announced that all bitcoins on the trading platform had been stolen
the management of Mt. GOx said that after the trading platform was attacked by the Internet in early February 2014, almost all bitcoins traded on the platform disappeared, including about 750000 bitcoins in the user's trading accounts and about 100000 bitcoins held by Mt. GOx itself. According to 28 trading, the loss of about 467 million U.S. dollars
since it is a proct on the Internet, we should always guard against shadow criminals. If they are careless, they can steal everything from you. You know, tigers still have time to nap
bitcoin risk 2
the virtual bitcoin mine developed by Zhongben Cong can proce 21 million, which will be completed in 2140. From the first batch of 50 after 2009 to now, more than 13 million have been excavated, and there are still 8 million in the remaining 100 years. It sounds like the method of locking in the total quantity is used to increase the price. Does anyone think that since it is a virtual mine, someone will design a second or countless similar mines in the future. Moreover, with the development of the Internet, the proction process of the virtual currency designed later is more complex and interesting than bitcoin
the popular digital currencies in 2013 include bitcoin, Leyte coin, zeta coin, pennies (Internet), invisible gold bar, red coin, pole coin, barbecue coin and prime currency. At present, hundreds of digital currencies are issued all over the world
in a few years, there will be thousands of virtual e-currency loans. The final result of development will be nothing to lose and all the money will be thrown on the floor
bitcoin risk 3
when bitcoin appears, it has already played a role in disrupting international finance. Countries must not watch virtual currency signal to disrupt their own financial markets. As a result, the major league of international financial organizations must crack down on or force the rectification of the virtual goods market, just like international terrorists
in addition, virtual currency has no ability to resist risks at all, and does not have the standard of credit rating at all. At that time, thousands of virtual currencies will return to the starting point of game currency
after a period of false speculation, the indivials or organizations of Zuozhuang have quietly left one after another, and the remaining virtual currency owners will face the end of "poor people kill evil people". Even if they fight hard, it will not help, and the result must be very miserable.

7. The cryptocurrency has plummeted as China's central bank hinted at tighter regulation of the bitcoin, according to articles by ou Leying and Justin Jimenez, economists at Bloomberg. The attraction of bitcoin is that it gets rid of China's capital controls. However, the obvious fact is that the market size is so small that it is impractical to use bitcoin as a channel for large-scale capital flight. On the contrary, the surge in bitcoin trading in mainland China reflects China's classic investment bubble.
bitcoin fell to $903 on January 10, down to 17% from the peak of $1091 on January 4. The direct reason is that the people's Bank of China has hinted that they are closely watching the market for irregularities. Given that China's bitcoin trading accounts for about 99% of the total trading volume of global exchanges tracked by bitcoinity, it's not surprising that China's regulatory actions are enough to drive bitcoin prices down
1 China's enthusiasm for this cryptocurrency is misplaced. Last year, China's foreign exchange reserves fell by about $320 billion. Given that capital is still flowing in under trade items, the actual scale of capital outflow may be larger. The current scale of the whole bitcoin market is about 15 billion US dollars, which is too small to allow a very small amount of money to leave China
rather than regard bitcoin as a channel for capital outflow, it is better to regard it as the latest type of investment bubble in China. Just as the stock market bubble in 2015 and the precious metal bubble in early 2016, the rise in prices was initially based on fundamentals. For bitcoin, this is based on the demand of Chinese households for offshore capital. With the influx of speculators holding a lot of money, prices soared. In the end, the regulatory crackdown and the carnival ended - until the next round.