Internet virtual currency bubble

virtual currency is the currency used for electronic circulation. Now the scope of virtual currency is very large, including q-coin, bitcoin and so on. With the development of digital currency, virtual currency is becoming more and more abundant, which may become the mainstream in the future. For example, BTC, EOS, bcbot and so on are not only virtual currencies, but also algorithms, landing projects and technologies

virtual currency is mainly issued by online game service providers to purchase game props, such as equipment, clothing, etc. But at present, the use of virtual currency has gone far beyond this category. Virtual currency can be used to buy game cards, physical objects and download services of some movies and software

extended data:

real risk

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 transaction of online virtual currency has 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

Taking 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

reference: network virtual currency

Not long ago, the total value of bitcoin in the world exceeded one billion US dollars for the first time. For a pure virtual currency without the support of a central bank or other authority, this is a remarkable achievement. But this is also temporary: we are experiencing a bitcoin bubble, and the bursting of bubbles is only a matter of time. P>

says bubbles are doomed to break down for several reasons. The first is: because it is a bubble, no matter what charts, if it grows into the above picture, it will usher in tears at the end of a certain moment. but there is a deeper reason - bitcoin is a strange mixture of goods and money. The commodity value of bitcoin is generated by its monetary value, but as its commodity attribute becomes more and more significant, its use as currency becomes smaller

the distrust of existing financial institutions by these people, including Nakamoto, is no exception. What makes Nakamoto different is that he turns this distrust into a philosophy, which is the most important driving force behind the bitcoin project. When he introced bitcoin to the world in February 2009, Nakamoto boasted that his new currency had achieved "complete decentralization and there was no credible party". Moreover, he explained in great detail the problems that he thought should be solved urgently:

"the fundamental problem of traditional currency is the trust needed to make it work. We must trust the central bank not to devalue the currency, but the history of fiat money is full of betrayal of this trust. We have to trust that banks will save our money and transfer them electronically, but they still lend money without reservation in the rising credit bubble. We have to trust them with our privacy and trust them not to let impostors take money out of our accounts. "

Nakamoto is not paranoid: what he said here is the same as Warren; What Mr. Buffett said in his letter to shareholders in 2012 doesn't make much difference

" under the current monetary system, known investment types include money market funds, bonds, mortgage loans, bank savings, and other forms. Most of these money based investments are considered "safe.". In fact, they are among the most dangerous assets

"in the past century, these investment methods have destroyed the purchasing power of investors in many countries, even if they can continue to harvest principal and interest in a timely manner. In addition, this terrible consequence will reappear again and again. Governments determine the final value of money, and systemic factors occasionally bias them toward policies that trigger inflation. From time to time, such policies get out of control