Why is Bitcoin a virtual commodity

① Does virtual currency belong to currency and why?

Virtual currency does not belong to currency, because “virtual currency” is not legal tender issued by the monetary authority, it is essentially a specific virtual currency commodity.

The “Announcement” jointly issued by the seven ministries and commissions clearly pointed out that the tokens or “virtual currencies” used in the financing of token issuance are not issued by the monetary authorities, do not have legal compensation and mandatory currency attributes, and do not It has the same legal status as currency, and cannot and should not be used as currency in the market.

At the same time, the “Announcement” also pointed out that the illegal sale, circulation, and raising of so-called “virtual currencies” such as bitcoin and ether from investors are essentially an unapproved illegal public financing. It is suspected of illegal sale of token tickets, illegal issuance of securities, illegal fundraising, financial fraud, pyramid schemes and other illegal and criminal activities.

Cinda Securities chief strategist Chen Jiahe said that the value of real currency or something with currency attributes comes from two aspects: one is the guarantee and endorsement of a strong state power, and the other is Universal use and irreplaceability. Therefore, virtual currency is clearly not real currency.

(1) Why Bitcoin is a Virtual Commodity Extended Reading

People’s Daily Online: Beware of the Risk of Virtual Currency Hype

In Supervision After the department made its stance clear, although Bitcoin China, Huobi and other “virtual currency” operators have successively adopted restrictions on trading platforms, the risk of “virtual currency” speculation is still worthy of high vigilance.

In this regard, the China Internet Finance Association also stated in the “Reminder on Preventing the Risk of So-called “Virtual Currency” such as Bitcoin” that the so-called “virtual currency” such as Bitcoin lacks a clear value basis, and is increasingly It has become a tool for illegal and criminal activities such as money laundering, drug trafficking, smuggling, and illegal fundraising.

Investors participate in speculative speculation through the “virtual currency” trading platform, and face the risks of large price fluctuations, security risks, platform technical risks, etc., which investors need to bear by themselves.

In an interview with this reporter, Jin Yu, director of the Economics Department of the School of Economics of Shanghai University of Finance and Economics, pointed out that supervision is very important to finance. Compared with traditional financial products and financial activities, “virtual currency” currently does not have an objective value reference.

Financial activities based on “virtual currency” have been outside the regulatory system for a long time, so related financial activities are prone to fall into problems such as “expected pricing” and “emotional pricing”.

In this context, “virtual currency” may not only hide gray transactions and even black transactions, but also may cause various risks and “crowd out” real financial innovation, which is not conducive to Internet finance sustainable and healthy development.

② Is bitcoin defined as a specific virtual commodity?

As early as 2013, five ministries including the central bank issued a document clearly defining bitcoin as a A specific virtual commodity. According to relevant regulations, financial institutions and payment institutions are not allowed to carry out exchange services for bitcoin, RMB and foreign currencies.

In view of this, on August 30, China Internet Finance Association took the lead in targeting ICO (that is, the first issuance of tokens for blockchain projects, raising bitcoin, Ethereum and other general digital currencies) behavior) to issue risk alerts. On September 4, seven departments including the central bank issued a document to suspend the issuance and financing of various tokens. On September 13, the China Internet Finance Association issued another reminder on virtual currency trading platforms and market risks. On the evening of September 15, Huobi.com confirmed that it has officially received notice and guidance from the regulatory authorities, requiring it to clean up and rectify virtual currency transactions.

③ Bitcoin as a virtual currency, why is its value so high

Does the currency need to be valuable? Since the decoupling of the dollar and gold in 1971, all the comparisons in the world have been a piece of paper, or a round of cheap metal. Therefore, since then, some economists have called this currency counterfeit. Then it also has a name called fiat currency. The full name is legal tender, and its endorser is the government credit.

So for capitalists, they prefer a currency that appreciates rather than a currency that keeps falling. This may not work in China, but abroad, if the capitalist thinks that he can no longer play by such rules, then sooner or later their government will have to follow the wishes of the capital. This is why Goldman Sachs and Morgan have all started to enter the Bitcoin market.

In order to attract more attention, Bitcoin will definitely welcome its spring with soaring rather than plummeting before it reaches its peak.

④ Is Bitcoin a virtual item?

Because it is virtual, it is risky, and it is easier to be whitewashed. The form of existence is a string of characters.
This is my answer to another question, you have a look,

⑤Why Bitcoin is a virtual asset

Bitcoin is a kind of computer software developed Although the generated virtual currency cannot be circulated in reality, because the total virtual currency is limited, that is, the more developed it is, the less it is developed, so it has its own unique value in the online world, and those who need it can exchange it with cash. Therefore, it is said that Bitcoin is a virtual asset. View the original post>>

⑥ I have never understood why the virtual currency Bitcoin is valuable

Virtual currency certainly has its value.

The value of money is that it can be used for equivalent exchange as a unified norm, so that there is no need to exchange things for things so troublesome.

Of course, in order to stabilize the value of the currency, it needs to be backed by state-owned banks, because the value is intangible, and there is no stable and reliable support behind the currency. A lot of trouble, this is the form of existence of traditional currency. Compared with traditional currency, virtual currency relies on unique algorithm technology to ensure the stability of currency and the amount of investment. For example, Bitcoin, because the algorithm is set to mine less and less, so it is easy to increase the value, and cleverly use people and land. Expected value, he will have a relatively stable increase in currency value, coupled with decentralization and convenient and safe online transaction methods, to a certain extent, it complements traditional currency, thus forming his core transaction value. Bitcoin’s A few are shown in the picture (picture source currency easy)

⑦ What is going on with Bitcoin

The concept of Bitcoin (Bitcoin) was originally proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009. The open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it. Bitcoin is a virtual encrypted digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system.
Unlike all currencies, Bitcoin is not issued by a specific currency institution. It is generated through a large number of calculations according to a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all The transaction behavior, and the use of cryptographic design to ensure the security of all aspects of currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be artificially manipulated by mass-producing Bitcoin. The cryptography-based design allows Bitcoin to be transferred or paid only by the true owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total amount is very limited and it has a strong scarcity.

⑧ Bitcoin as a virtual currency, why can it have so much value in the market

Bitcoin has mixed reviews, but its long-term value is still there

Bitcoin is a digital currency with a constant total amount of 21 million. It is based on blockchain technology and has the characteristics of decentralization, globalization, and anonymity. 2017 was a big year for Bitcoin. Its price soared from $778 in January 2017 to an all-time high on December 17 — over $19,000. Bitcoin derivatives trading has also officially opened, and the Chicago Board Options Exchange (Cboe) and the Chicago Mercantile Exchange (CME) have successively launched Bitcoin contracts.

From the perspective of stocks, large listed companies such as Tencent and Meitu have begun to explore and apply blockchain technology, and have proposed their own blockchain technology architecture. Will be internalized into company productivity and efficiency. But companies that directly participate in digital currencies or ICOs should be cautious, as it goes against the direction of regulation.

⑨ What is Bitcoin, and then some people say it is virtual currency, and it is limited, I want to ask, why do people dig, why do they dig,


On November 1, 2008, a person calling himself Satoshi
Nakamoto published a research paper on a covert cryptography discussion group, The paper describes his design for a new digital currency called bitcoin. He left very little online profile and hardly anyone had heard of him. Although Satoshi Nakamoto himself may be a mystery, his design solves a major problem in the code-breaking world for decades. The idea of ​​a digital currency that is convenient and untraceable, out of the control of governments and banks, has been a hot topic in the history of the internet.

Bitcoin abolishes third-party management by using a publicly distributed ledger, which Satoshi Nakamoto calls a “block chain” (block
chain). Users are happy to dedicate their computer’s CPU power, run a special software for “mining”, and form a network to jointly maintain the blockchain.

Tip 1: How is Bitcoin made?

The Bitcoin economy is made up of a network of users’ computers. The self-adjusting algorithm releases 50 bitcoins into the network every 10 minutes, with a gradual halving until 2140. This automated growth rate is designed to ensure that the money supply grows regularly without the need for intervention by a third party, such as a central bank, which can lead to hyperinflation.

Tips 2: How to mine Bitcoin?

To prevent fraud, the Bitcoin software maintains an anonymous public ledger of every transaction. Some bitcoiners verify transactions by cracking cryptographic puzzles, and the first solver of each problem gets 50 new bitcoins. Bitcoins can be stored in a virtual place, a “wallet” on a desktop computer from a centralized service connected to the cloud.

Tips3: How to use Bitcoin?

Once users download the Bitcoin program to their machines, using the currency is as easy as sending an email. The range of merchants who recognize it is still small, but has been expanding, looking for traces of the Bitcoin logo on cash machines. Entrepreneurs who use bitcoin are working to make bitcoin transactions easier, for everything from designated service plan machines to PayPal payment platform options.
When Satoshi Nakamoto’s paper was published in 2008, trust in the ability of governments and banks to manage the economy and money supply was at its lowest point. And in Satoshi Nakamoto’s ingenious algorithm, Bitcoin doesn’t need the approval of the politicians and financiers who bring down the economy. Not only does Bitcoin’s public ledger appear to be fraud-proof, but the digital currency’s scheduled issuance pattern keeps Bitcoin’s growth within a manageable range, preventing hyperinflation.

Satoshi Nakamoto disclosed very little information about himself, and the topic was limited to technical discussions on his own source code. On December 5, 2010, after bitcoiners began advocating for Wikileaks to accept bitcoin donations, the usually succinct and business-like Satoshi Nakamoto showed unusual excitement when he posted on the bitcoin forum, Write: “No, don’t let it in, the project needs to grow gradually and eventually solidify. I call on WikiLeaks to not use Bitcoin. Bitcoin is only a nascent product in the whole process. You can’t just want it More pocket money, this desire may destroy our current achievements.”

Later, Satoshi Nakamoto unexpectedly disappeared. Bitcoin users wonder why Satoshi Nakamoto left them. But probably since then, his designs have taken on a life of their own.

In 2009 and early 2010, Bitcoin was worthless in the market. In the first half year of trading since April 2010, Bitcoin’s market cap was less than 14 cents. Later, in the summer of 2010, Bitcoin was pulled by the virtual market, the supply was in short supply, and the price of the online trading market began to change. In January 2011, it topped $1.06 from a base of 87 cents.

In the spring, when Forbes magazine published a report on this new “mystery currency”, the price of bitcoin was catalyzed to a certain extent and began to rise explosively. From the beginning of April to the end of May, Bitcoin’s current exchange rate rose from 86 cents to $8.89. On June 1, Gawker published an article writing that Bitcoin was popular with online drug dealers and more than tripled in a week, surging to $27. The total market value of all bitcoins in circulation has reached 130 million.


In an atmosphere of joy, it heralds a kind of ominous. The real coin has a crisis, and the dramatic price surge has led people to see bitcoin as a commodity to speculate on. At the same time, the media attention is exactly what Satoshi Nakamoto was worried about. U.S. Senator Charles Schumer held a news conference calling on the DEA and the Justice Department to close the “Silk Road,” which he called “the The most shameless online drug trafficking channel” and considers Bitcoin to be a “money laundering machine for online models”.

However, even the purest technology needs to survive in an impure world. The code and the idea of ​​Bitcoin may not be affected, but Bitcoin itself is decentralized information that needs to be stored. Usually, bitcoins are stored in a digital wallet on the user’s desktop, and when bitcoins are cheap, easy to mine, and used by only a few technical engineers, it’s perfectly sufficient. But once they start to become valuable, one computer is not enough. Some users go out of their way to store their bitcoins. Most people would deposit cash in a bank, but with this new currency, a primitive, unregulated financial services industry took off. some unbelievable�’s network “wallet service” promises to protect the security of customers’ digital property. The exchange allows anyone to exchange bitcoins for dollars or other currencies. Users began to blindly delegate increasing amounts of bitcoin to third parties. Radical liberals argue that these third parties are safer than federal insurance agencies, but most of them don’t even know who bought them.

Sure enough, as the price increased, something happened that started to unsettle bitcoiners. In mid-June, a man who identified himself as Allinvain said more than $500,000 worth of 25,000 bitcoins had been stolen from his computer. A week later, a hacker compromised Mt.
Gox, a Tokyo-based trading site that accounts for 90 percent of all bitcoin transactions. After hackers broke into Mt. Gox’s system, they began to sell bitcoins aggressively, driving down the exchange rate to 0 so that more bitcoins could be withdrawn from others.
The Value of Bitcoin in Various Periods

After this happened, the price of Bitcoin plummeted and never went above $17. The accident shook people’s confidence and sparked a flurry of negative reports.

In the eyes of the public, Bitcoin has gone from a currency’s rising star to a dystopian joke overnight. The Electronic Frontier Foundation has quietly stopped accepting bitcoin donations. Newbies in non-technical fields thought it was easy to use, but were disappointed to find that storing, holding and spending bitcoins required a lot of extra effort. These once-exciting concerns have also become a source of resentment as the media has shifted from extreme attention to skepticism.

More disasters followed. Poland’s Bitomat, the third largest exchange, found itself accidentally rewriting its entire wallet. Security researchers have discovered a proliferation of viruses targeting bitcoin users: some are designed to steal existing bitcoins, others control other people’s computers to mine. By summer, MyBitcoin, the oldest bitcoin wallet service, stopped responding to emails. Jeff Garzik, a member of the Bitcoin Core development team, said that people have the misconception that virtual currency means you can trust random people on the Internet.


If Satoshi Nakamoto has abandoned his followers, even then, they are not prepared to let his design be ruined. Even though the market price is still falling, they still invest in this unstable market.

Core development member Amir Taaki said: “It can be said that Bitcoin follows Gartner’s Hype
Cycle. This refers to The theoretical curve of a technology from adoption to maturity. This cycle is divided into technology budding period, overheating period, disillusionment trough, recovery period and productivity maturity. According to this theory, Bitcoin is coming out of disillusionment trough.

But what makes Bitcoin troublesome is its reliance on unregulated centralized exchanges and online wallets. In fact, most mining is concentrated in a few huge mining pools, and if they work together, theoretically It will bring down the entire network.

Besides the most hardcore users, the skepticism of Bitcoin has only increased. Nobel Prize-winning economist Paul Krugman (Paul
br />Krugman) wrote in the article that bitcoin’s volatility trends encourage people to hoard money. Stefan
Brands, a former e-money advisor and digital currency pioneer, called bitcoin ” Smart,” and doesn’t want to be critical of it, but he thinks the basic structure of Bitcoin is like a pyramid scheme. He said: “I think the biggest issue is ultimately the issue of trust, which has no backing. I know there is a counterargument that the same is true for paper money, but that is completely false. The legal mechanism has established an entire web of trust. “

People want to know what Satoshi Nakamoto thinks about this whole thing, but he never speaks or responds to emails. Both The New Yorker and Fast Company have conducted Investigated, but found little.

But developer Garzik says those obsessive bitcoiners have stopped investigating Satoshi Nakamoto. He said: “We Actually don’t care about that. It doesn’t matter who is behind the code, what matters is the code itself. While people have stolen, cheated, and abandoned Bitcoin users, the code itself remains true. “


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