The essence of digital currency

1.

1. The concept range is different. bitcoin is a kind of digital currency, and the concept of digital currency covers bitcoin

However, some digital currencies have independent issuers

The biggest difference between bitcoin and other virtual currencies is that the total quantity of bitcoin is very limited and it has a strong scarcity. The monetary 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

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. Bitcoin is a digital currency

digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold

today's digital currencies, such as bitcoin, lettercoin and ppcoin, are electronic currencies created, issued and circulated by means of check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency

< H2 > extended data

illegal digital currency

in recent years, "virtual currency" represented by bitcoin, Ethernet currency and Leyte currency has been traded centrally on some Internet platforms. With the help of financial technology, the price of these "currencies" has graally spread to investment, financing and other financial fields, which has aroused wide attention from all walks of life

not long ago, the people's Bank of China and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly regulated the relevant behaviors. Experts pointed out that "virtual currency" is not legal tender (legal currency) issued by monetary authorities, but a specific virtual commodity in essence

therefore, it is undoubtedly a great legal and economic risk to think that "virtual currency" has or will have the nature of legal tender and to carry out speculation, network fund-raising, lending and financing

2.

Digital 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. More generally speaking, digital currency is actually a commodity

just like gold, it took more than 200 years to be graally recognized by the world. In the early days, many people questioned gold's ability to store value. If we take digital currency as a substitute, people's questioning attitude towards gold in the past is equivalent to many people's attitude towards digital currency now

extended data

digital currency is a balance between financial security and innovation ability. Financial instry should have clear access threshold. Digital currency involves finance, so it must have clear access threshold. The enterprise qualification of blockchain and digital currency needs to be reviewed and an access system set. One of the core of supervision is that blockchain enterprises must have qualified technical personnel

for example, enterprises of different levels in the construction instry need different levels and numbers of registered structural engineers to ensure the safety of buildings and bridges, which can also be used for reference in the supervision of digital currency. In addition, investors need to refer to the requirements of the "measures for the appropriateness of securities and futures investors" issued by the CSRC, and only those who meet certain conditions can participate in the investment

3. In essence, there is no difference. The success of a coin does not mean that it is valuable, it only means that the hype means of its issuing team have worked, or it happens to meet the hype conditions needed by the current market, that's all.

4. In fact, the technical systems corresponding to various digital currencies are quite different
moreover, the development of digital currency is still immature.

5. Credit endorsement by the state has the function of value anchoring and credit creation, which will have a substantial effect on the economy. Legal digital currency, like paper money, is essentially pure credit currency. However, digital currency can further rece operating costs, and can be applied in a wider range of areas with higher efficiency
"the emergence of digital currency follows the inevitable law of currency evolution, and is also the inevitable result of the development of science and technology. From the perspective of historical process, the carrier of currency has evolved from shellfish and precious metals to paper money, and then to the popular third-party payment electronic currency in modern society
in essence, they are pursuing the convenience and low cost of transaction, and this trend continues to develop, and the manifestation in the future society is digital currency. The first thing to solve is the technical barriers, although today's blockchain is regarded as the Internet of the 1990s, and its future is limitless. But it is not mature enough to support the huge payment system. At the same time, the issuance of legal digital currency will greatly increase the number of point-to-point transactions, bypass the original regulatory system to a certain extent, and easily facilitate illegal transactions. As digital currency makes it very convenient to convert deposits into cash, financial panic and financial risk will accelerate the spread once they occur, which increases the difficulty of supervision. In addition, in the process of using legal digital currency, a large number of user data and transaction information will be obtained. How to store and manage these data to prevent the disclosure and illegal use of user information is also an important challenge.

6. "Digital currency is an alternative currency in the form of electronic currency, which can be used for real goods and services transactions. Digital currency has the main characteristics of network packets. This kind of data package is composed of data code and identification code. The data code is the content to be transmitted, while the identification code indicates where the data package comes from and goes Definition of digital currency: the alternative currency in the form of electronic currency belongs to digiccy. Digital 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: the digital expression of value, which is not issued by the central bank or authorities, nor linked with legal currency, but because it is accepted by the public, it can be used as a means of payment, or can be transferred, stored or traded in electronic form. 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: first, e to some open algorithms, digital currency has no issuing subject, so no one or institution can control its issuing; ② 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; ③ Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough. The emergence of bitcoin poses a great challenge to the existing monetary system. Although it belongs to the generalized virtual currency, it is essentially different from the virtual currency issued by network enterprises, so it is called digital currency. This paper compares digital currency with electronic currency and virtual currency from the aspects of issuing subject, scope of application, issuing quantity, storage form, circulation mode, credit guarantee, transaction cost and transaction security.