Advantages and disadvantages of network virtual currency
Publish: 2021-04-21 10:59:14
1. < / UL >
(1) bitcoin was originally a kind of network virtual currency to buy real-life goods
(2) advantages:
< UL >completely decentralized, without issuing institutions, it is impossible to manipulate the number of issues
anonymity, tax exemption and supervision free
robustness. Bitcoin is completely dependent on P2P network and has no distribution center, so it cannot be shut down externally
cross border
it's difficult for the cat to survive
(3) disadvantages:
< UL >the vulnerability of trading platform
transaction confirmation takes a long time
the price fluctuates greatly
the public did not understand the principle, and the traditional financial practitioners resisted
2. Advantages: decentralization, global circulation, exclusive ownership, low transaction costs, no hidden costs
disadvantages: the trading platform is vulnerable to hacker attacks, the block chain leads to long transaction confirmation time, and the current speculation is very large. Recently, a special document has been issued to rectify the bitcoin trading platform.
disadvantages: the trading platform is vulnerable to hacker attacks, the block chain leads to long transaction confirmation time, and the current speculation is very large. Recently, a special document has been issued to rectify the bitcoin trading platform.
3. Bitcoin (bitcoin: bitcoin) was originally a kind of network virtual currency, similar to Tencent's q-coin, but it has been able to buy real-life goods. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used as a money laundering tool by some criminals. In 2013, the U.S. government recognized the legal status of bitcoin, making the price of bitcoin soar. In China, on November 19, 2013, a bitcoin was equivalent to 6989 yuan
in 2009, Nakamoto designed a kind of digital currency, namely bitcoin. The booming bitcoin market has gone up and down, and the identity of its founder "Nakamoto" has always been a mystery. Rumors about "the father of bitcoin" involve from the US National Security Agency to financial experts, and also give bitcoin a mysterious aura
on January 7, 2014, Taobao announced that it would ban the sale of Internet virtual currencies such as bitcoin and lightcoin from January 14. On February 26, 2014, Democratic Senator Joe Manchin of West Virginia issued an open letter to a number of regulatory authorities of the federal government of the United States, hoping that relevant institutions would pay attention to the status quo of bitcoin encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency. On January 11, 2017), the Shanghai headquarters of the people's Bank of China and the Shanghai Municipal Finance Office carried out on-site inspection of bitcoin China, focusing on whether the enterprise carried out credit, payment, exchange and other related businesses without permission or license; Implementation of anti money laundering system; Fund security risks, etc. On January 12, 2017, the business management department of the people's Bank of China also entered the trading platforms such as "fire coin net" and "currency bank" in Beijing
on May 12, 2017, a global outbreak of bitcoin virus madly attacked public and commercial systems! More than 40 hospitals across the UK have been widely hacked, leaving the NHS in chaos. The campus networks of many colleges and universities in China were also occupied. Nearly 74 countries in the world have been seriously attacked
currency characteristics
Decentralization: bitcoin is the first distributed virtual currency, and the whole network is composed of users without a central bank. Decentralization is the guarantee of bitcoin's security and freedom
Global Circulation: bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect bitcoin
exclusive ownership: the private key is required to manipulate bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself
low transaction cost: bitcoin can be remitted free of charge, but a transaction fee of about 1 bitfen will be charged for each transaction to ensure faster transaction execution
no hidden cost: as a means of payment from a to B, bitcoin has no cumbersome quota and proceres. If you know the other party's bitcoin address, you can pay
cross platform mining: users can explore the computing power of different hardware on many platforms
advantages
complete decentralization, without issuing institutions, it is impossible to manipulate the number of issues. Its distribution and circulation are realized through open-source P2P algorithm. Anonymity, tax exemption and supervision free. Robustness. Bitcoin is completely dependent on P2P network and has no distribution center, so it cannot be shut down externally. Bitcoin price may fluctuate and collapse, and many governments may declare it illegal, but bitcoin and its huge P2P network will not disappear
cross border. Cross border remittance will go through layers of exchange control agencies, and the transaction records will be recorded by many parties. But if you trade with bitcoin, enter the digital address directly, click the mouse and wait for the P2P network to confirm the transaction, a lot of money will pass. It does not go through any regulatory agencies and will not leave any cross-border transaction records. It's hard for a cat to survive. Because bitcoin algorithm is completely open source, anyone can download the source code, modify some parameters, recompile, and create a new P2P currency. But these counterfeit currencies are fragile and vulnerable to 51% attacks. Any indivial or organization, as long as it controls 51% of the computing power of a P2P currency network, can manipulate transactions and currency value at will, which will be a devastating blow to P2P currency. Many Shanzhai coins die in this link. The bitcoin network is robust enough. If you want to control 51% of the computing power of the bitcoin network, the number of CPUs / GPUs required will be astronomical
disadvantages
vulnerability of trading platform. The bitcoin network is robust, but the bitcoin trading platform is fragile. Trading platform is usually a website, which will be attacked by hackers or shut down by competent authorities. Transaction confirmation takes a long time. When bitcoin wallet is first installed, it will consume a lot of time to download historical transaction data blocks. While bitcoin transaction, in order to confirm the accuracy of data, it will take some time to interact with P2P network, and the transaction will be completed only after the whole network is confirmed
the price fluctuates greatly. Due to the intervention of a large number of speculators, the price of bitcoin for cash fluctuates like a roller coaster. Making bitcoin more suitable for speculation rather than anonymous trading. The public did not understand the principle, and the traditional financial practitioners resisted. Active netizens understand the principle of P2P network and know that bitcoin has no legal person to manipulate and control. But the public doesn't understand, and many people can't even tell the difference between bitcoin and q-coin“ "No issuer" is the advantage of bitcoin, but in the view of traditional financial practitioners, "no issuer" currency is worthless.
in 2009, Nakamoto designed a kind of digital currency, namely bitcoin. The booming bitcoin market has gone up and down, and the identity of its founder "Nakamoto" has always been a mystery. Rumors about "the father of bitcoin" involve from the US National Security Agency to financial experts, and also give bitcoin a mysterious aura
on January 7, 2014, Taobao announced that it would ban the sale of Internet virtual currencies such as bitcoin and lightcoin from January 14. On February 26, 2014, Democratic Senator Joe Manchin of West Virginia issued an open letter to a number of regulatory authorities of the federal government of the United States, hoping that relevant institutions would pay attention to the status quo of bitcoin encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency. On January 11, 2017), the Shanghai headquarters of the people's Bank of China and the Shanghai Municipal Finance Office carried out on-site inspection of bitcoin China, focusing on whether the enterprise carried out credit, payment, exchange and other related businesses without permission or license; Implementation of anti money laundering system; Fund security risks, etc. On January 12, 2017, the business management department of the people's Bank of China also entered the trading platforms such as "fire coin net" and "currency bank" in Beijing
on May 12, 2017, a global outbreak of bitcoin virus madly attacked public and commercial systems! More than 40 hospitals across the UK have been widely hacked, leaving the NHS in chaos. The campus networks of many colleges and universities in China were also occupied. Nearly 74 countries in the world have been seriously attacked
currency characteristics
Decentralization: bitcoin is the first distributed virtual currency, and the whole network is composed of users without a central bank. Decentralization is the guarantee of bitcoin's security and freedom
Global Circulation: bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect bitcoin
exclusive ownership: the private key is required to manipulate bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself
low transaction cost: bitcoin can be remitted free of charge, but a transaction fee of about 1 bitfen will be charged for each transaction to ensure faster transaction execution
no hidden cost: as a means of payment from a to B, bitcoin has no cumbersome quota and proceres. If you know the other party's bitcoin address, you can pay
cross platform mining: users can explore the computing power of different hardware on many platforms
advantages
complete decentralization, without issuing institutions, it is impossible to manipulate the number of issues. Its distribution and circulation are realized through open-source P2P algorithm. Anonymity, tax exemption and supervision free. Robustness. Bitcoin is completely dependent on P2P network and has no distribution center, so it cannot be shut down externally. Bitcoin price may fluctuate and collapse, and many governments may declare it illegal, but bitcoin and its huge P2P network will not disappear
cross border. Cross border remittance will go through layers of exchange control agencies, and the transaction records will be recorded by many parties. But if you trade with bitcoin, enter the digital address directly, click the mouse and wait for the P2P network to confirm the transaction, a lot of money will pass. It does not go through any regulatory agencies and will not leave any cross-border transaction records. It's hard for a cat to survive. Because bitcoin algorithm is completely open source, anyone can download the source code, modify some parameters, recompile, and create a new P2P currency. But these counterfeit currencies are fragile and vulnerable to 51% attacks. Any indivial or organization, as long as it controls 51% of the computing power of a P2P currency network, can manipulate transactions and currency value at will, which will be a devastating blow to P2P currency. Many Shanzhai coins die in this link. The bitcoin network is robust enough. If you want to control 51% of the computing power of the bitcoin network, the number of CPUs / GPUs required will be astronomical
disadvantages
vulnerability of trading platform. The bitcoin network is robust, but the bitcoin trading platform is fragile. Trading platform is usually a website, which will be attacked by hackers or shut down by competent authorities. Transaction confirmation takes a long time. When bitcoin wallet is first installed, it will consume a lot of time to download historical transaction data blocks. While bitcoin transaction, in order to confirm the accuracy of data, it will take some time to interact with P2P network, and the transaction will be completed only after the whole network is confirmed
the price fluctuates greatly. Due to the intervention of a large number of speculators, the price of bitcoin for cash fluctuates like a roller coaster. Making bitcoin more suitable for speculation rather than anonymous trading. The public did not understand the principle, and the traditional financial practitioners resisted. Active netizens understand the principle of P2P network and know that bitcoin has no legal person to manipulate and control. But the public doesn't understand, and many people can't even tell the difference between bitcoin and q-coin“ "No issuer" is the advantage of bitcoin, but in the view of traditional financial practitioners, "no issuer" currency is worthless.
4. Bitcoin
was proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed
bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of currency 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
on December 17, 2017, bitcoin reached an all-time high of $19850.
was proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed
bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of currency 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
on December 17, 2017, bitcoin reached an all-time high of $19850.
5. A machining center of about one meter is a relatively large one. This kind of machining center is generally equipped with imported systems, such as FANUC, Siemens, Mitsubishi, etc. the specific price is more than 30 Wan. Different manufacturers also have a certain impact on the price. Shenyang machine tool factory and Dalian machine tool factory are better domestic machining centers, We should choose the machining center according to your actual situation. If you want to buy in Northwest China, we suggest you look for Dongyue machine tool. They all sell the first-line well-known brands in China. They are the general agent of many first-line brands in Northwest China, and the price is relatively favorable. The 850 in our factory was bought from them last year. I hope it can help you
6. It can not be said that it is electronic currency, but the electronic voucher of currency is more suitable. The banknote has been damaged, so it is convenient to carry large amount of money. Coins, on the contrary, are not easy to carry. They are small in denomination and can't carry much money. The advantages of e-money are convenient for payment transactions, especially online, real name authentication. Every sum of money belongs to so and so, and it's not easy to lose. Unlike physical money, it's easy to lose. When others find it, they can't tell who the money is, so others can use it. Electronic payment is fast and convenient. It can transfer money all over the world at any time. The disadvantage is its security and operability. It may be difficult for older people to adapt to it and need a full process
7. Like yu'ebao, the emergence of Internet financial procts is a good thing, but also a matter of keeping pace with the times. The Internet is just a tool, and finance itself is risky. Because the Internet is fast, it can amplify the risk and make the problem break out in a short time. In fact, the development and maturity of any instry is trial and error step by step
Internet finance has the following risks:
1
for example, the current yield of Alibaba's yu'ebao is less than 5%, and the nature of yu'ebao is money market fund. But the expected rate of return of Baifa is as high as 8%, which makes us want to ask, what is the basic asset of Baifa's final investment? Under the background of sluggish global economic growth, declining potential growth rate of China's economy, widespread overcapacity in domestic manufacturing instry, insufficient opening up of domestic service instry, and graally emerging risks of shadow banking system, how to achieve 8% high yield is not only to provide bridge loans to enterprises, but also to provide financing for real estate developers and local financing platforms, What are the high yield investment channels
2. Term mismatch risk, that is, the term of Internet financial procts investment assets is long, while the term of liabilities is very short. Once the liabilities can not roll on time, liquidity risk may occur. Of course, one of the major functions of financial institutions is to convert short-term funds into long-term funds, so financial institutions will face varying degrees of maturity mismatch, and the key is the degree of mismatch. Lenovo has made a promise to allow investors to redeem at any time, which undoubtedly exacerbates the liquidity risk to the greatest extent. We should not only allow redemption at any time, but also give an expected yield of 8%, which certainly makes inexperienced investors happy, but also makes experienced investors full of doubts
3. Lender of last resort risk
as mentioned above, although commercial banks also face the risk of maturity mismatch, and financial procts issued by commercial banks also face the risk of credit default and maturity mismatch, an important difference compared with Internet finance is that commercial banks can finally obtain the support of the last lender provided by the central bank. Of course, this support comes at a great cost. For example, commercial banks must pay 20% of the statutory deposit reserve, their own capital adequacy ratio must be higher than 8%, and they must meet the requirements of regulators on the risk provision and liquidity ratio. In contrast, Internet finance is currently facing the situation of lack of supervision, so the operating cost is low. But if there is no protection of lender of last resort, who will pay for the default of Internet financial procts? Do Internet financial enterprises have the ability to build a strong independent risk defense system
in addition to the above traditional risks, China's Internet financial procts also face a series of unique risks. The author will sort out these risks from high to low in order of importance:
4. Legal risks
at present, the Internet finance instry is still in the state of "no threshold, no standard, no regulation". As a result, some internet financial procts (especially wealth management procts) wander in the gray area between legal and illegal, and may touch the high-voltage line of "illegal absorption of public deposits" or "illegal fund-raising" if they are not careful< Dragons and fishes jumbled together in China's Internet finance field e to lack of barriers and standards. BR and the Internet have become more and more vulnerable. Once the Internet bubble is formed and a bigger default occurs, China's government will tighten its grip on Internet finance too early, thus restraining the sustainable development of the instry. China's Internet finance instry should avoid repeating the chaos in the early development of trust instry and securities instry
5. It makes it more difficult for the central bank to regulate money and credit
on the one hand, Internet financial innovation makes the central bank's traditional intermediate target of monetary policy face a series of challenges. For example, should virtual currency (such as Q currency) be included in M1? Another example is that Internet financial enterprises are not subject to the legal deposit reserve system, which actually leads to the amplification of the monetary multiplier. Another example is how to look at the interaction and transformation between traditional currency and virtual currency; On the other hand, the development of Internet finance also weakens the effect of the central government's credit policy. For example, if the traditional financing channels of real estate developers are tightened, it is likely to consider financing through Internet finance. In fact, the macro background of the great development of China's Internet financial procts in the past year is related to the tightening of the supervision of the shadow banking system by the Chinese government, which leads to the local financing platform, real estate developers and other market entities have to find new financing sources
6. The risk of personal credit information being abused. First of all, Internet financial enterprises obtain personal and corporate credit information through data mining and data analysis, and use it as the main basis for credit rating, whether this is reasonable and legal; Secondly, whether the information obtained through the above channels can truly comprehensively and accurately measure the credit risk of the subject being rated, and whether there are selective errors and systematic deviations in it< 7. Information asymmetry and information transparency. As mentioned earlier, the Internet finance instry is in a state of lack of supervision. So, who will verify the authenticity of the information provided by the ultimate borrower, whether there is an independent third party who can control the risk, and how to prevent the Internet financial enterprises from self-monitoring and theft? After all, the relevant investigation shows that only about 20% of the Internet P2P companies have professional risk control teams
8. Technical risk
unlike traditional commercial banks, which have highly independent communication networks, Internet financial enterprises are in an open network communication system. The security of TCP / IP protocol is facing great criticism, and the current key management and encryption technology is not perfect, which makes Internet financial system vulnerable to computer viruses and network hackers. At present, considering the high risk of Internet financial account theft, many people are hindered from participating in Internet finance, which is by no means without professional financial or IT personnel. Therefore, Internet companies must continuously invest in their own trading systems and data systems to ensure their security, which will undoubtedly increase the operating costs of Internet financial companies and weaken their cost advantages over traditional financial instries.
Internet finance has the following risks:
1
for example, the current yield of Alibaba's yu'ebao is less than 5%, and the nature of yu'ebao is money market fund. But the expected rate of return of Baifa is as high as 8%, which makes us want to ask, what is the basic asset of Baifa's final investment? Under the background of sluggish global economic growth, declining potential growth rate of China's economy, widespread overcapacity in domestic manufacturing instry, insufficient opening up of domestic service instry, and graally emerging risks of shadow banking system, how to achieve 8% high yield is not only to provide bridge loans to enterprises, but also to provide financing for real estate developers and local financing platforms, What are the high yield investment channels
2. Term mismatch risk, that is, the term of Internet financial procts investment assets is long, while the term of liabilities is very short. Once the liabilities can not roll on time, liquidity risk may occur. Of course, one of the major functions of financial institutions is to convert short-term funds into long-term funds, so financial institutions will face varying degrees of maturity mismatch, and the key is the degree of mismatch. Lenovo has made a promise to allow investors to redeem at any time, which undoubtedly exacerbates the liquidity risk to the greatest extent. We should not only allow redemption at any time, but also give an expected yield of 8%, which certainly makes inexperienced investors happy, but also makes experienced investors full of doubts
3. Lender of last resort risk
as mentioned above, although commercial banks also face the risk of maturity mismatch, and financial procts issued by commercial banks also face the risk of credit default and maturity mismatch, an important difference compared with Internet finance is that commercial banks can finally obtain the support of the last lender provided by the central bank. Of course, this support comes at a great cost. For example, commercial banks must pay 20% of the statutory deposit reserve, their own capital adequacy ratio must be higher than 8%, and they must meet the requirements of regulators on the risk provision and liquidity ratio. In contrast, Internet finance is currently facing the situation of lack of supervision, so the operating cost is low. But if there is no protection of lender of last resort, who will pay for the default of Internet financial procts? Do Internet financial enterprises have the ability to build a strong independent risk defense system
in addition to the above traditional risks, China's Internet financial procts also face a series of unique risks. The author will sort out these risks from high to low in order of importance:
4. Legal risks
at present, the Internet finance instry is still in the state of "no threshold, no standard, no regulation". As a result, some internet financial procts (especially wealth management procts) wander in the gray area between legal and illegal, and may touch the high-voltage line of "illegal absorption of public deposits" or "illegal fund-raising" if they are not careful< Dragons and fishes jumbled together in China's Internet finance field e to lack of barriers and standards. BR and the Internet have become more and more vulnerable. Once the Internet bubble is formed and a bigger default occurs, China's government will tighten its grip on Internet finance too early, thus restraining the sustainable development of the instry. China's Internet finance instry should avoid repeating the chaos in the early development of trust instry and securities instry
5. It makes it more difficult for the central bank to regulate money and credit
on the one hand, Internet financial innovation makes the central bank's traditional intermediate target of monetary policy face a series of challenges. For example, should virtual currency (such as Q currency) be included in M1? Another example is that Internet financial enterprises are not subject to the legal deposit reserve system, which actually leads to the amplification of the monetary multiplier. Another example is how to look at the interaction and transformation between traditional currency and virtual currency; On the other hand, the development of Internet finance also weakens the effect of the central government's credit policy. For example, if the traditional financing channels of real estate developers are tightened, it is likely to consider financing through Internet finance. In fact, the macro background of the great development of China's Internet financial procts in the past year is related to the tightening of the supervision of the shadow banking system by the Chinese government, which leads to the local financing platform, real estate developers and other market entities have to find new financing sources
6. The risk of personal credit information being abused. First of all, Internet financial enterprises obtain personal and corporate credit information through data mining and data analysis, and use it as the main basis for credit rating, whether this is reasonable and legal; Secondly, whether the information obtained through the above channels can truly comprehensively and accurately measure the credit risk of the subject being rated, and whether there are selective errors and systematic deviations in it< 7. Information asymmetry and information transparency. As mentioned earlier, the Internet finance instry is in a state of lack of supervision. So, who will verify the authenticity of the information provided by the ultimate borrower, whether there is an independent third party who can control the risk, and how to prevent the Internet financial enterprises from self-monitoring and theft? After all, the relevant investigation shows that only about 20% of the Internet P2P companies have professional risk control teams
8. Technical risk
unlike traditional commercial banks, which have highly independent communication networks, Internet financial enterprises are in an open network communication system. The security of TCP / IP protocol is facing great criticism, and the current key management and encryption technology is not perfect, which makes Internet financial system vulnerable to computer viruses and network hackers. At present, considering the high risk of Internet financial account theft, many people are hindered from participating in Internet finance, which is by no means without professional financial or IT personnel. Therefore, Internet companies must continuously invest in their own trading systems and data systems to ensure their security, which will undoubtedly increase the operating costs of Internet financial companies and weaken their cost advantages over traditional financial instries.
8. Advantages and disadvantages of e-money
advantages: convenient, fast, efficient and economic
disadvantages: 1. It needs strong support from a third party
2. New risks arise
3. The scope of application is limited
advantages: convenient, fast, efficient and economic
disadvantages: 1. It needs strong support from a third party
2. New risks arise
3. The scope of application is limited
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