Issue and circulation of virtual currency

1. In the future, the value of virtual currency only depends on the number of people with money, whether there are entities under it, and whether it plays a role in promoting social finance, which determines its success or failure; Any currency is issued by the head office, which is a process system. The circulation is the quantity issued by the decision-making level of the headquarters according to the market research, which is based on the accurate market research

2. In fact, it is the proction process and method of virtual currency, in short, it is mining. Let's take bitcoin as an example to show that more people can go to bitcoin home and

anyone can run software on special hardware to become a bitcoin miner. Mining software monitors transaction broadcast through P2P network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners can earn transaction fees paid by users to speed up transaction processing and additional bitcoin issued according to fixed formula
new transactions need to be included in a block with mathematical workload proof before they can be confirmed. This kind of proof is hard to generate because it can only be generated by trying billions of calculations per second. Miners need to run these calculations before their blocks are accepted and rewarded. As more people start mining, the difficulty of finding effective blocks will be automatically increased by the network to ensure that the average time to find a block remains at 10 minutes. Therefore, the competition for mining is very fierce, and no indivial miner can control the content contained in the block chain
workload proof is also designed to rely on previous blocks, which forces the time sequence of block chain. This design makes it extremely difficult to cancel previous transactions, because the workload proof of all subsequent blocks needs to be recalculated. When two blocks are found at the same time, the miner will process the first block received, and once the next block is found, it will be transferred to the longest block chain. This ensures that the mining process maintains a global consistency based on processing capacity
bitcoin miners can neither increase their rewards by cheating, nor deal with the fraulent transactions that destroy the bitcoin network, because all bitcoin nodes will reject the blocks containing invalid data that violate the bitcoin protocol rules. Therefore, even if not all bitcoin miners can be trusted, the bitcoin network is still secure.

3.

China does not have the first legal virtual currency. At the end of 2013, the central bank and other five ministries and commissions issued the bitcoin risk notice, which clearly defined bitcoin as a special Internet commodity, and the public can buy and sell it freely on the premise of taking their own risks

other digital confidential currencies are also suitable, such as Laite coin, the ancestor of Shanzhai coin, Fuyuan coin for business points in jewelry instry, dog coin for small reward, etc. But although virtual currency exists legally in our country, it is illegal to cheat under the guise of virtual currency

extended data

as the proct of e-commerce, virtual currency has begun to play an increasingly important role, and it is more and more connected with the real world. However, with the growth of virtual currency, the relevant laws and regulations are lagging behind, which has laid many hidden dangers

fraud

the private transactions of online virtual currency have realized the two-way circulation between virtual currency and RMB to a certain extent. The activity of these traders is to buy all kinds of virtual currencies and procts at a low price, and then sell them at a high price to earn profits. With the increase of such transactions, there are even virtual mints

in addition to the virtual currency provided by the main company, there are also some people who specialize in "virtual coin making" to obtain virtual currency by playing games and then resell it to other players. Take Wenzhou as an example, there are about seven or eight such "virtual mints" with four or five hundred practitioners. This not only creates a bubble for the price of the virtual currency itself, but also causes trouble for the normal sale of the issuing company. It also provides a platform for selling and collecting money and money laundering for various cyber crimes. p>

impact system

in modern financial system, the issuers of money are generally central banks, which are responsible for the management and supervision of money operation. As the equivalent exchange goods used to replace the real currency circulation on the Internet, the virtual currency on the Internet is essentially the same as the real currency. The difference is that the issuers are no longer central banks, but Internet companies

if the development of virtual currency makes it form a unified market, each company can exchange with each other, or virtual currency is integrated and unified, and all of them are based on the same standard and price, then in a sense, virtual currency is currency, which is likely to form a threat impact on the traditional financial system or economic operation

network problems

in addition to direct cash, virtual currency can also be purchased by SMS, internet transfer and fixed telephone recharge. These ways of purchase not only provide convenience for users, but also have many risks

such as embezzlement of telephone recharge and purchase by minors. In addition, virtual currency does not have the anti-counterfeiting technology of real currency. Computer hackers may use its security loopholes to proce counterfeit currency. Relevant personnel of the State Administration for Instry and Commerce said that virtual currency transaction is a business behavior derived from the Internet era, and there are no clear legal provisions to regulate it, and there are no items related to virtual goods transaction in the scope of instrial and commercial registration

but when the virtual property transaction graally employs people, places are fixed, transaction profits are clear, and has the nature of operation, it may involve market order and tax issues. Even game operators have no ability to control. There are a large number of "counterfeit banknote makers" in the network. Take the winger who is mainly engaged in chess and card online games as an example, the purchasing power of his online currency has shrunk by nearly 40% in one year. Many people point out that such inflation will only damage netizens and make them lose confidence in the Internet

reference source : network virtual currency

4. Virtual currency can be divided into game currency and network token
game currency is mainly circulated by game companies and professional gamers through online tasks and ground sales
network token: it is a kind of virtual currency equivalent to normal currency that can circulate on the network. Such as the common Q coin. This is mainly to facilitate users in a variety of consumer activities on the network. In the early stage, free quantitative distribution is used to guide consumers to a virtual consumption habit. In the later stage, special sales channels are set up.

5. For example, is there really a God in the world? Obviously not, but people still spend human, material and financial resources to Xinyang and worship, and come to the conclusion that there is still value in the existence and exchange of the false theory. Of course, this is different from bitcoin. In the process of bitcoin's generation, a person who seems to be a little famous suddenly put forward a theory, sales of storage currency. At the beginning, this kind of currency was only spread and entertained among a few people (assuming that there were 10000 people in the first year). Of course, these people only held the attitude of entertainment at the beginning, just like playing online games. The next year, suddenly a team or a number of (speculative group), suddenly feel this organic, began to buy at a low price, and grasp the market. When the time is ripe, the whole world will know about this kind of currency by means of media and economic people. The number of participants will increase from less than 50000 to one million, and tens of billions of capital will flow in. I remember the most popular time was at the end of November, when the price of a bitcoin was 7900, but there were many reports at that time that it could rise to 400000, At this time, the speculative teams felt that it was impossible to go up again and began to sell a lot of bitcoin. As a result, the price of bitcoin fell by about 4000 in less than a month. These teams made a lot of gold and silver. However, because there are still one million people involved, the price will stop at around 3000 for quite a while, But in the process of people quitting, bitcoin will be worthless Personal views (for reference only)

6. All basic information types are OK. It's very easy to find websites with blockchain information types. You can go online to "blockchain network". There are at least thousands of information stations like "blockchain XX network" in China. No, let's go online.

7. It should not, because under special circumstances, cash is more reliable than digital currency. For example, there is no flow or mobile phone. Currency in circulation has a history of thousands of years in China, and it can not be replaced overnight

8. No, the issue quantity of virtual currency is generally fixed, and it is issued according to certain rules, but not according to the limit needed in circulation. Let's take bitcoin as an example:

New bitcoin is generated through "mining", which is a competitive and decentralized process. This process involves indivials serving the bitcoin network and getting paid for it. Bitcoin miners use dedicated hardware to process transactions and protect bitcoin networks, and collect new bitcoins ring transactions

bitcoin protocol is designed to issue new bitcoin at a fixed rate. This makes bitcoin mining an extremely competitive instry. As more and more miners join the bitcoin network, it becomes more and more difficult to make profits. Miners must seek efficiency to cut proction costs. No central authority or developer has the right to control or manipulate the system to increase their profits. Any behavior that does not comply with the rules required by the system will be rejected by any bitcoin node in the world

bitcoin is issued at a predictable and graal decline rate. The number of new bitcoins will be halved year by year until the total number reaches 21 million. By then, bitcoin miners may be able to support only a large number of small transaction costs

since 2013, the popular virtual currencies are bitcoin, Laite coin, Fuyuan coin, Ruibo coin, Yuanbao coin and so on.

9. The central bank, the people's Bank of China, is the only legal currency issuing institution in China. The currency issued by the central bank generally enters the circulation through three channels.
first, it flows into commercial banks through rediscount and refinancing business, and then enters the market circulation through commercial banks' asset business (such as loans, securities investment, etc.).
Second, it deals with gold, silver and foreign exchange business, Capital entering the market
Third, by buying Treasury bonds in the open market, market traders can obtain funds and expand the source of funds.
these are also the three major means for the central bank to regulate the market