Number of participants in digital currency
If you want to participate in the transaction of digital currency, you must understand the digital currency ecosystem
It can be said that digital currency exchange is the most important part of the whole instry. Digital currency exchange provides investors and traders with the capital channel to buy and sell digital currency. At the same time, the trading activities of the exchange determine the price of many digital assetsaccording to coinmarketcap, the capital flow of digital currency exchanges is huge, with the average daily trading volume of the top five exchanges exceeding US $3 billion
there are hundreds of digital currency exchanges around the world, some of which operate globally in mainstream markets, while some focus on niche markets
for example, AAX is committed to providing services for digital currency traders and institutional investors, integrating the digital currency world with the global economy, and providing unparalleled first-class technical capabilities using the matchmaking engine supported by lseg technology
many substitutes have successfully occupied a certain market share shortly after their launch. What digital currency exchanges have in common is that they together provide the development soil for these alternative currencies
digital currency is no longer limited to bitcoin. Other digital currency assets, such as eth, XRP, BCH, usdt, LTC, EOS, xtz, etc., have a place in the portfolio and diversification strategies of many digital currency dealers
At present, there are many similarities between digital currency trading and foreign exchange trading, because the basic principles, tools, indicators and strategies used in foreign exchange are also applicable to digital currency trading. AAX College's digital currency trading section discusses these topics in depth and extensivelyblockchain protocol
blockchain is the underlying technology that makes digital currency possible. There are many kinds of blockchain protocols, and the technical characteristics, advantages and disadvantages of each protocol are slightly different
for example, bitcoin blockchain relies on mining and pow (proof of work) mechanism to process transactions, while another blockchain may use dpos (proof of entrustment) mechanism instead of mining. In addition to bitcoin blockchain, other noteworthy protocols include eth, hyperledger, EOS, XLM, Iost, kin, TRX and stem. Among these blockchain agreements, ETH (Ethereum) is commendable in promoting the rapid innovation of the entire digital currency ecosystem
Ethereum platform was created by vitalik buterin, which indicates that developers can make better use of the resources of the platform by using their own programming language solidity. Ethereum has made blockchain technology all the rage, creating a new world of innovative decentralized applications on the basis of smart contracts and custom tokens. At present, most of the substitutes are based on Ethereum's erc20 standard
the district centered financial movement, or defi for short, is also basically based on the Ethereum blockchain agreement
financial services
for every service in traditional finance, Ethereum based defi applications have corresponding alternative versions for everyone to access. The defi app allows users to create stable currencies, lend money and earn interest, send and receive payments, get loans, trade, take positions in the forecast market, enter the real estate sector, and so on. Smart contracts are the key to making decentralized services possible. Once certain conditions are met, the smart contract will automatically perform the pre agreed activities
at the same time, traditional finance also began to provide new customized services for the field of digital currency. At present, some fund managers provide investors with the option of adding digital currency into their portfolios, the trustee provides security services for investors who invest a lot of money in digital currency, and many analysts in mainstream media (such as Bloomberg) also have a strong interest in digital currency
digital currency hardware
for those who like to build their own security measures, the huge digital currency hardware market can provide professional traders and long-term holders with the tools they need. Trezor and ledger are the most famous hardware wallets. They essentially provide the same value for digital currency traders, that is, a more secure way to store digital currency
of course, digital currencies stored in hardware wallets cannot be traded in the market. Therefore, digital currency traders usually allocate funds between the hardware wallet and the exchange according to a certain ratio according to their own trading style preference
There are so many activities ofdata aggregators and blockchain analysis
cross blockchain, which proces a large amount of data, and also spawns the emergence of sub instries, namely data aggregators and blockchain analysis instries. Companies such as coinmarketcap are the preferred source for quick inspection of digital currency and exchange data. They collect statistics on trading volume, liquidity, market value, price trend, circulation and the whole instry, such as the total amount of money, the number of markets, the market value of the instry and the proportion of BTC market value
people who are more interested in blockchain analysis can find the required data in websites like blocktivity. Here, you can view the relevant data of each indivial blockchain agreement, including the number of operations in the last 24 hours, the average number of operations in the last 7 days, the market value and Cui index, that is, the remaining available capacity after the actual usage of the current blockchain agreement. All in all, these websites can provide valuable insights for the blockchain instry
for example, the average number of operations of Ethereum in the past seven days was 667000, with Cui slightly higher than 50%, while the average number of operations of EOS in the same time range was 63 million, with Cui slightly lower than 50%. Technically, the performance of EOS protocol is more powerful than that of Ethereum. However, this can not prevent Ethereum from occupying 70% of the total market value of the most mainstream currencies
digital currency media and conferences
in today's world, almost everyone is the publisher of content. Without we media instry, such a large-scale instry will no longer exist. Digital currency has given birth to a wide range of media patterns, covering news media, KOL and related conferences for currency, public chain and code
digital currency head media include coindesk, cointegration, bitcoin magazine, decrypt, CCN, bitcoinist, newsbtc, etc. Some KOLs are also well-known, sometimes even more popular than the news media
YouTube celebrities, such as datadash, dollar villante, altcoin buzz, Ivan on tech and boxmining, have subscribers from 200K to 300K. In the field of digital currency trading, the top stars of cryptotwitter include venture coinist, cryptocred and cryptodon alt, with 211k, 140k and 120K fans respectively
if you want to have face-to-face communication with companies and people, digital currency and blockchain meetings should not be missed. Every year, there are many conferences around the world for investors, blockchain experts, start-ups, institutional financing, currency or agreement related communities. In 2019 alone, we sponsored and participated in blockchain live in London, the capital summit hosted by coinmarketcap in Singapore and the world mobile conference in Shanghai. We have had exciting meetings with other digital currency companies and major financial institutions, and established contacts with regulators from different jurisdictions
digital currency supervision
with the continuous growth of the market and audience of digital currency instry, in most cases, financial regulators are still developing relevant frameworks to protect investors and consumers. Regulators may take a very different approach, which is a challenge for companies operating across multiple jurisdictions
ring the ICO boom in 2017 and 2018, many projects were launched before the regulatory framework was established, while some projects did not meet the criteria of the jurisdiction and were suspended ring the fund-raising process. All this comes from how to classify digital assets, and the understanding of classification is constantly changing. At present, we divide digital assets into security token and practical token
in the past year, with the proposal of Libra, the promotion of supervision is also increasing. The central bank is also actively exploring the significance of blockchain technology to its policies and economic activities, and constantly publishing reports
the rapid development of digital money ecosystem
these components of digital money ecosystem are growing and developing in an orderly way, contributing to the increasingly sound instry. From the minority interest in 2009 to the active digital asset economy, digital currency has come a long way
However, in order to achieve the development and wide participation of the instry, a strong ecosystem is not enough. We need a better link between digital money and global finance. The better the combination of digital currency and traditional finance, the easier it will be for newcomers to understand the digital currency ecosystemfor every novice, as exchanges, financial services, media and regulators graally adapt to the expectations of mainstream consumers, the digital currency instry will further develop, which may improve investment outcomes
Digital currency is a kind of legal tender, which must be issued by the central bank. Both digital gold coin and cryptocurrency belong to digital currency, which is not a network virtual currency, because it is not limited to virtual space, but is often used for real goods and services transactions, such as bitcoin, Wright coin, bitstock, etc. at present, there are thousands of digital currencies issued around the world
extended data:
1. Impact on financial infrastructure
the decentralized mechanism of value exchange based on distributed ledger technology has changed the basic settings of gross and net settlement on which financial market infrastructure depends. The use of distributed ledgers also poses challenges to trading, clearing and settlement, as it promotes the disintermediation of traditional service providers in different markets and infrastructures. These changes may have potential impacts on market infrastructure other than retail payment systems, such as large payment systems, securities settlement systems or trading databases
If digital currency and distributed ledger based technology are widely used, it will bring challenges to the intermediary role of financial system participants, especially banks. As a financial intermediary, banks perform the ties of acting supervisors and supervise borrowers on behalf of depositors. Usually, banks also carry out liquidity and maturity conversion business to realize the financing from depositors to borrowers. If digital currency and distributed ledger are widely used, any subsequent disintermediation may have an impact on savings or credit evaluation mechanismsDigital currency is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of a specific virtual community. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form
in recent years, the excessive issuance of banknotes has led to the aggravation of inflation, the frequent security crisis of third-party payment, and the graal maturity of blockchain technology, so decentralized digital currencies such as bitcoin, Ethereum and reborn have emerged. Digital currency has the advantages of low transaction cost, fast transaction speed, high anonymity and fixed amount of money
At the same time, the use scenarios of digital currency become more and more abundant, which makes the user acceptance grow. At present, the use of digital currency has covered all kinds of scenes, such as shopping consumption, wage payment, transportation, travel, takeout settlement and tuition payment. The expanding landing scene has also brought a wider range of consumers. In general, although the number of users of digital currency still accounts for a small proportion of the total population, the number of users is growing. At present, the utilization rate of digital currency has exceeded 10% in 10 countries around the world In June 2019, Facebook launched Libra virtual cryptocurrency, which has caused worldwide influence. The emergence of Libra may form a global super sovereign currency, thus affecting the traditional transaction settlement currency. For China, the emergence of Libra, on the one hand, will have an impact on China's traditional currency and threaten the sovereign status of China's currency; On the other hand, because RMB is not included in Libra's basket of currencies, it will rece the reserve demand of RMB by central banks, thus hindering the internationalization of RMB. In response to this threat, CCTV timely launched the central bank digital currency. In September 2019, according to China Daily, the central bank's digital currency closed-loop test has begun, and the central bank's digital currency is about to come outcoincidentally, in addition to China, central banks around the world have also announced that they will launch a centralized digital currency based on national credit. In 2015, Ecuador took the lead in launching the national version of digital currency, which can not only rece the issuance cost and increase the convenience, but also enable people in remote areas who cannot have banking resources to obtain financial services through the digital platform. At present, Canada, Brazil, Norway, the United Kingdom and other countries are studying the central bank legal digital currency, while the Bahamas, Sweden, Russia and other countries are discussing the possibility of digital currency issuance. Generally speaking, the developing countries which have received a great impact on digital currency have supported legal digital currency for financial inclusion, breaking through sanctions and other reasons
for the above data and analysis, please refer to the in depth analysis report on business model innovation and investment opportunities of China's blockchain instry published by foresight Instry Research Institute . Meanwhile, foresight Instry Research Institute also provides instrial big data, instrial planning, instrial declaration, instrial park planning, instrial investment promotion and other solutions
the development of this kind of digital currency depends on the quantity. There are more than 30 million digital currencies. Dogcoin is a typical example. Although dogcoin is the digital currency with the second largest number of users in the world after bitcoin, its recent development momentum is not optimistic. The total number of thousand gold cards is only 3 million, but the development momentum is good.
The role of digital currency:
1. First of all, the central bank's digital currency can provide a huge data base for monetary policy and macro Prudential policy, so that the regulatory authorities can collect real-time trading books of different frequency and different institutions according to their needs, and it is complete and real. This information advantage can help the central bank use policy tools more accurately and flexibly
Secondly, the central bank's digital currency technology can track the flow of funds and help the regulatory authorities to comprehensively monitor and assess financial risks. Finally, the central bank's digital money technology is concive to the transmission of interest rate of monetary policy. Digital currency technology supports "point-to-point" payment and settlement, which can improve the liquidity of market participants. Only the digital currency of the central bank, which is generally accepted by the whole society, can radiate this advantage to the participants of different financial markets, so as to improve the liquidity of financial markets. This will make the term structure of interest rate smoother and the transmission mechanism of interest rate smoother
extended data:
digital currency can be considered as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency are mainly reflected in three aspects: because it comes from some open algorithms, digital currency has no issuing subject, so no one or institution can control its issuing; Because the number of algorithm solutions is fixed, the total amount of digital currency is fixed, which fundamentally eliminates the possibility of inflation caused by the overuse of virtual currency; Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough
Internet digital currency itself will not cheat people. Internet digital currency is just a tool, it depends on the people who use it
since 2013, digital currency has been popular all over the world, and has been on the front page of major news for many times
however, the digital money pyramid schemes also emerge one after another
the typical mode of digital money pyramid selling is to choose a ready-made one, or simply program yourself to invent a digital currency
1. Package several "experts", "elites" and "government officials"
2. Publicize all kinds of cases of making a fortune online and offline. Design the illusion of digital currency appreciation
3. The cheated directly invest to buy the digital currency
4. Give the cheated a compound interest reward or a direct rebate after the end of the investment cycle. Rewards are also digital money itself
5
6. Organizers sell a large number of digital currencies for cash, and the currency price will drop sharply
7. Claiming to be attacked by hackers, claiming to be controlled by makers, resulting in the decline of currency price
8. Running
the pyramid selling of digital currency is a combination of general pyramid selling, Ponzi scheme and direct selling. Compared with general pyramid selling, digital currency pyramid selling has three additional characteristics:
1. And the packaging is very advanced
2. Participants can get a head pulling reward. The prize is the digital currency itself
3. Digital currency tends to appreciate as more people participate in the scam. Participants can obtain the growth of the number of digital currency itself and the growth of book converted legal currency, including the lowest level participants
conclusion: in the early stage of digital money pyramid scheme, it is pyramid scheme, and in the later stage, it turns into Ponzi scheme immediately.