What are the risks of bitcoin and other private digital currenci

1.

Yin Zhentao, deputy director of the law and Finance Research Office of the Financial Research Institute of the Chinese Academy of Social Sciences, said that digital currency faces two risks. The first is the technical level. Digital currency relies on blockchain technology and a system, which will make it suffer from security impact, such as hacker attacks on computer systems. We have seen many practical problems in this process

Zhao Zhanzhan, a special researcher of intellectual property research center of China University of political science and law, believes that digital currency has anonymity, quickness and irrevocability. In addition, bitcoin and other digital currencies have high circulation in the world, so many criminals use digital currency as a new money laundering channel. Moreover, there are many different ways to realize money laundering through digital currency. Generally speaking, the probability of new money laundering being found and investigated is lower than before. Many countries have no effective means and technology to combat money laundering through digital currency. These factors lead to criminals prefer this way of money laundering

2. Legal risks faced by digital currency: (1) at the macro level, there are legal risks, systematic risks and consumer protection. At present, the legislative problems of e-commerce and e-payment have not been solved, the concept of e-currency and related provisions need to be clarified, and many laws and regulations have not been followed up. Secondly, there is a systemic risk caused by the collapse of a single issuing institution. If a certain issuing institution loses confidence in e-money e to its poor management, other e-money issuing institutions will also face run risk. Moreover, in the absence of standardized supervision, it is difficult for the public to effectively identify the qualification and credit level of issuers. How to effectively prompt risks and protect the rights and interests of the public has become a difficult problem. In addition, the concealment, rapidity and cross-border nature of Internet payment make e-money an inevitable money laundering tool for criminals 2 At the micro level, there are technical risks and credit risks in the main body of e-money issuance. The issuers of e-money in China include banks, non bank financial institutions, Internet enterprises and other enterprises. Due to the weak financial professional foundation of some issuers, especially the lack of mandatory technical security standards in China, there are serious management loopholes and security risks in e-money issuers. System software or hardware failures will affect the availability of e-money. Secondly, the unreasonable structure of assets and liabilities and high concentration of investment will lead to the lack of liquidity and the risk of default. In addition, the payment and circulation of e-money rely heavily on all kinds of networks, and there are all kinds of operational risks, such as deliberate embezzlement of other people's accounts, internal crimes of issuing institutions and malicious intrusion of hackers, which will damage the interests of e-money holders. Bitcoin, Ruitai and other digital currencies are suitable.

3. Digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy
digital currency is a kind of unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities. 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
according to the notice on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China. According to China's digital currency regulatory framework, investors have the freedom to participate in digital currency transactions at their own risk

warm tips: the above information is for reference only. Before investing, it is recommended that you first understand the risks existing in the project, and understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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4.

When bitcoin was first launched, a bitcoin could not buy a hamburger, but now a bitcoin can buy a car, which is the violence of virtual currency. The virtual digital currency led by bitcoin has let many investors see the dawn{ RRRRR}

we all like to save money, at most for a fixed period. A few people buy stocks, let alone virtual digital currency

the biggest risk of digital currency is instability. It is not a currency recognized by the International Monetary Fund. Bitcoin can not be traded directly, nor can it be used to buy things directly, because the number of bitcoin is limited. Therefore, many people feel that it is necessary to invest

and now many countries prohibit the transaction of virtual currency, because digital currency helps money laundering. Many people launder money through digital currency to evade supervision. Once the government finds it illegal, it will be unfavorable for the trend of digital currency

there is a lot of uncertainty in digital currency, and the biggest fear is the collapse of the whole system. In the end, there is nothing left, so there are risks in investment

5. There is also risk, but the risk is not as big as the stock investment, and it will not fluctuate as the stock. It is a popular investment now. I'm now investing in Tianyuan currency in Jiujiu trading network. This is digital currency. It's quite stable

6. Fire Money Wallet is the most reliable

7. Not so good. I'd better go to the provincial hospital

8. According to the specific algorithm, through a large number of calculations, bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography 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. The currency system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 million
the risk is that the future bitcoin will be stopped by the international machine, resulting in abortion

9. No financial institution shall provide bitcoin related procts or services. But it denies its monetary attribute, and the people can buy and sell freely on the premise of their own risk
bitcoin itself is not a currency in China and will not compete with the digital currency launched by the central bank. The digital currency to be issued by the central bank is just the digitization of RMB, as is the younger brother of bitcoin such as Ruitai and Laite. At this stage, bitcoin has been clearly defined as a special Internet commodity in the notice, and the central bank has issued the bitcoin risk notice at the end of 2013

10. Different people have different opinions