The impact of the election on the bitcoin

1. bitcoin is different from the previous currency, it completely relies on the Internet to create and trade; Bitcoin's unique technical attributes lead to its economic and cultural attributes beyond the present currency. Bitcoin is a kind of electronic currency proced by open-source P2P software. Compared with the paper currency in circulation, the biggest feature of bitcoin is decentralization and global circulation in the network world, followed by high security and high confidentiality. These technical attributes further extend to the economic attributes of no inflation, no freezing, and no man-made supply; In terms of culture, bitcoin is popular among anarchists and liberals. The advantages of bitcoin are artificially exaggerated, and its anti inflation and anti inflation functions cannot stand up to scrutiny. In the long run, the prospect of bit is hard to match that of gold. In the most optimistic case, it will become a means of payment in some areas; But in the short and medium term, bit still has room for speculation and imagination. In addition, the use of bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security
1. The advantages of bitcoin are exaggerated: About decentralization, no transaction costs and anti inflation
it is true that bitcoin has various advantages over paper money, but these advantages have been over interpreted. First of all, bitcoin is a kind of decentralized currency, which will not have the same risk of central bank controlling money supply and affecting market value as paper money; Bitcoin is mainly held in the hands of large investors, and the market depth is not enough. At present, the trading behavior of large investors is also very easy to affect the price of bitcoin. Even if the attribute of decentralization is regarded as the advantage of bitcoin when it is fully mature, then the prerequisite of holding decentralization should be added. In addition, there are great differences between centralized and decentralized online payment systems in the degree and type of financial risks they are exposed to
secondly, the low transaction cost of bitcoin is not without transaction cost. On the contrary, e to the increasing difficulty of bitcoin mining and the further stability of currency value, the dependence of relevant transaction platforms on transaction cost will increase, which will certainly increase the transaction cost. Finally, the confidentiality of the bitcoin transaction needs to be discussed. The principle of the bitcoin transaction makes all the processes of each bitcoin transaction stored in each machine. If someone can determine the real background of a transaction, they can find all the transactions down and up through these data
compared with other advantages, anti inflation or anti inflation is the most publicized advantage. Although its supply is stable and the upper limit of supply is locked according to its algorithm, unless the whole world is unified and all countries use bits as currency, it can not prevent the over issuance of money only as a means of payment or a storage of value, just as the current existence of gold can not constrain the growth of each country's currency. If bits can only be used as a means of payment in local areas (such as the network), then global or some countries' inflation will still be transmitted to the areas where bits are used. Therefore, the use of bits to prevent inflation is basically untenable, or has a strong premise. As for anti inflation, that is to say, it has the function of value storage, it needs to have the property similar to gold. However, from the reality, bit's essential property and prospect are still hard to match gold. See below for details
2. Bitcoin's future positioning is too high
the expectation of bitcoin's future in the market generally compares it with gold and US dollar, which is relatively high. The recognition of gold not only lies in its natural physical properties, but also in its official acceptance as a reserve currency (or an important allocation of foreign exchange assets). In theory, bitcoin as an electronic currency does not have the unique and exclusive status, and it is more difficult to become the official reserve of central banks like gold. Therefore, it is not appropriate to expect too much bit. As an electronic currency, bit has the first mover advantage. If it can be guaranteed in terms of security, its most optimistic prospect will be as a means of payment in local areas
3. Speculation and speculative demand caused by event factors are the main reasons for the rise of bitcoin in this round
under the credit currency system, people's lack of confidence in the currencies of various countries and pessimistic economic prospects are the general environment for the rise of bitcoin in this round. The speculation of the major dealers in the market and the derivatives market of bitcoin, together with the speculative psychology of the participants, further accelerated its rise. Btcchina's investment of US $5 million and the announcement of Ben's position are the main driving factors for the recent surge
however, a lot of big players start to enter the market and buy a lot, which not only drives the bit price up to a high level, but also increases the market risk. Chamath, a former Facebook executive, has spent $5 million on bitcoin and plans to spend another $10 million. Bitcoin investment trust also exceeded its target within four weeks, raising $15 million. These people's investments not only make bitcoin further rise, but also concentrate on the holding of bitcoin, which strengthens the influence of indivials and institutions on the price of bitcoin and increases the market risk
4. There is still strong room for speculation in the medium and short term
although our previous analysis is not optimistic about the prospect of bit, it is likely that bit will still have strong room for speculation in such a short and medium term period of time as one year. As mentioned in the previous analysis, the creators of bitcoin advocate that the generation of bitcoin is not manipulated by human factors, which is quite different from the credit currencies of various countries. We expect that the monetary policies of major countries will be divided next year. With the release of economic risks and the heavy damage to traditional asset markets, bitcoin will have better room for speculation and imagination< The use of bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security
the U.S. government seized the drug trading website "Silk Road" at the beginning of last month. A crowdfunding network called "assassination market" even marked the sale of murderers with bitcoin price. The founder of the assassin market, under the pseudonym of kuwabatake Sanjuro, is an extreme anarchist. Both prism gate incident and the use of bitcoin in relevant sensitive fields highlight the increasingly prominent position of information field in national security. The Third Plenary Session proposed the establishment of the national security committee, which will play an important role in China's security strategy and expand from traditional national defense, stability maintenance / urban security to information security and other emerging areas

2. The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system. Unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of money circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity
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3.

To be honest with the Chinese, bitcoin's fall will not have a great impact on the whole. China has issued a request to the bitcoin exchange that all consumers clear their hands of bitcoin. On the whole, the impact is not great. The reason why bitcoin falls so hot is mostly because the sharp rise in the front is in sharp contrast to the current slump. What's more, at that time, everyone invested in this thing, and the topic was full{ RRRRR}

anyway, as melon eaters, we should eat melons. It's better not to touch it. It's better for those friends who lost money to stop loss in time. Don't be investment risk, two lines of tears of relatives

4. Bitcoin is the so-called "cryptocurrency", which is a digital asset in the form of data. Your money in the bank may also be a bunch of numbers, but these numbers are equivalent to real money. Bitcoin is not. In the world of bitcoin, there is neither a central bank to manage nor an inherent legal framework. Because of this, the value of bitcoin is entirely determined by the market, which is currently very hot
bitcoin is stored in a digital wallet. You can store it on your local hard disk or mobile phone, or in a variety of online bitcoin exchanges. Keeping bitcoin locally is like hiding money under a mattress. If something goes wrong with your digital wallet, your money will be gone
to remit or collect money, you need to point your bitcoin client or network exchange to a bitcoin address, which is the address of every wallet. After a few minutes, bitcoin will generally leave your wallet and enter the other person's wallet. There are few sites that accept bitcoin, but there are a few. It's more difficult to use bitcoin in real life, but it can be achieved through some systems
what is the impact of bitcoin on the economy
despite all kinds of problems, the soaring price of bitcoin is partly e to more and more people using it. Bitcoin fans believe in its future. Ordinary people are also graally interested in cryptocurrency, but because it is too complex, it is difficult to popularize in the mass market. If it is really popular, the fluctuation of bitcoin's value will lead to greater turbulence in the global economy
if you bought $1000 bitcoin in 2010, it's worth about $35 million now. But if you buy $1000 bitcoin in early 2014, you'll only have a quarter of your purchasing power a year later. How would you feel if you paid with bitcoin and found that you could only buy half of what you had a few days ago
this kind of inflation is unstable, but if it is used in parallel with the government supported currency, bitcoin does have some advantages. Few people will exchange all their assets for bitcoin.

5. No impact, the CBRC clearly stipulates that financial institutions shall not participate in bitcoin transactions

6. After the outbreak of the epidemic last year, the US dollar began to print in a crazy way. Within a month, the total amount of money printed in the past ten years was printed, leading to a vertical rise in the whole money supply

all kinds of signs make us dollar credit system full of uncertainty.

7. As bitcoin is a virtual currency, and it is also issued on the Internet, it has little influence at present. However, because it is a new thing after all, and stock futures are the representative of bulk goods and company performance, bitcoin is a virtual currency, but it can be purchased. Therefore, the influence between them remains to be observed and studied.

8.

In 2016, RMB became the fifth largest world currency after US dollar, euro, Japanese yen and British pound. As a new member of the SDR basket, RMB is also the first emerging market currency to join the SDR basket

the inclusion of RMB into a basket of SDR currencies meets two "hard" criteria. One is the scale of export trade of currency issuing countries, and the other is the free use of currency

from a macro point of view, the inclusion of RMB in SDR has a wide range of positive significance. It will boost China's economic development, financial system reform and RMB internationalization

When it comes to the impact on RMB internationalization, Lian Ping, chief economist of Bank of communications, thinks that there are two positive effects. The first is demonstration effect. SDR is an internationally recognized "super sovereign reserve currency". Joining SDR means that RMB's status as an international reserve currency has been recognized by IMF, and it has become the official reserve currency candidate of 188 member countries; Before and after the entry of RMB into SDR, China has taken and will continue to take a series of measures concive to the opening of capital and financial accounts, including improving the RMB exchange rate middle price mechanism, which in turn will further promote the internationalization of RMB

for the Chinese people, they can also benefit from the "basket" SDR of RMB. In the long run, the dream of Chinese consumers holding RMB for direct overseas travel, shopping and investment may come true. People who have experienced outbound tourism have a lot of feelings about "exchange". Tourists should not only convert the exchange rate before departure, but also make an appointment for bank exchange; After returning to China, we need to convert the remaining foreign currency cash into RMB, which not only has exchange rate loss, but also has relatively complex operation steps, increasing travel costs