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The harm of bitcoin in China

Publish: 2021-05-23 17:30:44
1. Yes, and it's huge. The amplitude of bitcoin is very large, and it's easy to make big losses. Worse and more dangerous than the A-share market. If the heavy position is high, the consequences will be unimaginable. Other air coins are more difficult to operate in hell
bitcoin is very risky. Although bitcoin can be used for real commodity transactions, there are still many restrictions, so its use value is limited
moreover, bitcoin has certain political and legal risks. If bitcoin is prohibited by law in the future, the money you invest in bitcoin may be wasted
in addition, the security of the platform is also very poor, and there are great risks in the storage and trading of bitcoin. After all, bitcoin only depends on source code to store, so once stolen, it is basically irreparable. Many trading platforms have been attacked by hackers and lost a lot of bitcoin
the quantity of bitcoin is also limited, and it is vulnerable to price fluctuations. Its highly volatile exchange rate just shows its instability. After all, it lacks a strong financial system to support it.
2. Bitcoin China, the first bitcoin trading platform in China, announced yesterday that it would stop all trading business from September 30 this year. In this regard, some financial people expect that some investors will not participate in the local sale before the platform closes at the end of the month. If such investors rush in from a high level in August, the losses will be very heavy
bitcoin China announced that in accordance with the spirit of the document "Notice of the people's Bank of China Central Network Information Office, Ministry of instry and information technology, State Administration for Instry and commerce, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on preventing the financing risk of token Issuance" issued on September 4, and adhering to the principle of preventing investment risk and protecting the interests of users to the maximum extent, bitcoin China team has carefully discussed, Three decisions were made: first, bitcoin China digital asset trading platform stopped new user registration from yesterday; Second, on September 30, 2017, the digital asset trading platform will stop all trading businesses. Third, bitcoin China's mining pool (national pool) and other businesses will not be affected by this and will continue to operate normally
affected by this news, bitcoin, lightcoin and Ethereum all fell sharply. By the time of Beijing Youth Daily, the price of bitcoin was 21600 yuan, with a 24-hour drop of 12.51%. During the day, bitcoin once fell below 20000 yuan, with the lowest price reaching 19597 yuan; Ethereum quoted 1472 yuan, down 14.56%; Lightcoin fell the most, offering 299 yuan, down more than 23%
bitcoin China, the first and largest bitcoin trading platform in China, is operated by Shanghai satuxi Network Co., Ltd., which was established on June 9, 2011. The team members are mainly from China, Silicon Valley and Europe
on March 12, 2014, bitcoin China officially launched the lightcoin transaction, with a total transaction volume of more than 30 million yuan
on September 30, 2017, bitcoin China stopped all trading business
the first time I bought bitcoin and the first time I bought Ethereum was in bitcoin China. The collapse of bitcoin China and other exchanges means that China has lost its pricing power in the field of virtual currency.
3. First, bitcoin is not issued by the monetary authority. It does not have the monetary attributes of legal compensation and compulsion. It is not a real currency. Here, we have to compare the properties of bitcoin and currency. Take bitcoin as an example, it belongs to a virtual asset of the network, and there is no specific issuing institution, while bitcoin is calculated by network nodes. In contrast, money is a commodity separated from commodities and fixed as a general equivalent. As a result, bitcoin cannot replace traditional currency. Today, management has made it clear that bitcoin is not a real currency, that is, it denies the currency status of bitcoin. Second, bitcoin websites should earnestly fulfill the legal anti money laundering obligations such as customer identification and suspicious transaction reporting, and effectively prevent the money laundering risks related to bitcoin. As a virtual asset of network, bitcoin has an unpredictable regulatory risk. Due to the anonymity and decentralization of the ownership and circulation of bitcoin, it is difficult to guess the regulatory risk of bitcoin. With the significant improvement of bitcoin's global influence, it has graally become a place for some criminals to commit money laundering and other violations. Undeniably, this also provides an effective way to deal with the regulatory loopholes of bitcoin. Third, all financial institutions and Payment institutions are not allowed to carry out business related to bitcoin, price procts or services with bitcoin, buy or sell bitcoin or act as central counterparties. In essence, the management prevents a series of unpredictable problems by blocking the bitcoin related business of financial institutions. Of course, this move is to a greater extent considered from the perspective of national strategy.
4.

Chinese players have become the main crowd in buying bitcoin, which has directly led to the popularity of Chinese bitcoin trading websites. Even the laurel of "the world's largest trading platform" has rotated among bitcoin trading websites in China. What are the disadvantages of bitcoin


the 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



bitcoin has been given a mysterious color since its birth: it is said that because of its concealment and limitation, it is used in drug trafficking. With this kind of dark color, it was packaged as a financial proct and successfully started trading. Many people wonder if bitcoin will eventually replace money? It is not issued by any institution or country, is not controlled by any organization, and is completely decentralized. Bitcoin instead of currency can avoid currency being artificially controlled. However, while this idea sounds wonderful, it cannot be realized

the transaction of bitcoin has congenital defects, and the transaction of bitcoin is irreversible. In other words, it can never be undone: once confirmed, there will be no "error" and no "return". This will bring great inconvenience to the transaction. The limitation of bitcoin also determines that it can not meet the needs of transaction< br />

5.

There is no law in China to ban bitcoin, so it is not illegal to mine and earn bitcoin

it is not illegal to buy bitcoin in China. In 2013, five ministries and commissions jointly issued the bitcoin risk notice, which states that although bitcoin does not belong to legal tender and is not legally compulsory, people can freely participate in bitcoin trading activities when they voluntarily undertake risks

< H2 > extended materials < H2 >

"notice" clearly defines the nature of bitcoin, and holds that bitcoin is not issued by the monetary authority, has no monetary attributes such as legal compensation and mandatory, and is not a real currency. In terms of nature, bitcoin is a specific virtual commodity, which does not have the same legal status as currency and cannot and should not be used as currency in the market

however, as a kind of commodity trading on the Internet, ordinary people have the freedom to participate in bitcoin trading at their own risk

the notice requires that at this stage, financial institutions and Payment institutions shall not price procts or services with bitcoin, buy or sell bitcoin as a central counterparties, underwrite insurance business related to bitcoin or include bitcoin in the scope of insurance liability, and provide other bitcoin related services to customers directly or indirectly, Including: providing bitcoin registration, trading, clearing, settlement and other services for customers; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin and RMB and foreign currency exchange services; Carry out bitcoin storage, custody, mortgage and other services; Issuing financial procts related to bitcoin; Take bitcoin as the investment target of trust, fund, etc

in order to avoid over hype of virtual commodities such as bitcoin in the name of "virtual currency" and damage the public interest and the legal tender status of RMB, the circular requires financial institutions and Payment institutions to correctly use the concept of currency in their daily work, pay attention to strengthening the ecation of the public's knowledge of currency, and correctly understand the concept of currency The concept of correctly treating virtual commodity and virtual currency, rational investment, reasonable control of investment risk, and maintenance of their own property security should be included in the content of financial knowledge popularization activities, so as to guide the public to establish a correct concept of currency and investment

source of reference: People's website bitcoin network virtual currency

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7.

To be honest with the Chinese, bitcoin's fall will not have a great impact on the whole. China has issued a request to the bitcoin exchange that all consumers clear their hands of bitcoin. On the whole, the impact is not great. The reason why bitcoin falls so hot is mostly because the sharp rise in the front is in sharp contrast to the current slump. What's more, at that time, everyone invested in this thing, and the topic was full{ RRRRR}

anyway, as melon eaters, we should eat melons. It's better not to touch it. It's better for those friends who lost money to stop loss in time. Don't be investment risk, two lines of tears of relatives

8. No impact, the CBRC clearly stipulates that financial institutions shall not participate in bitcoin transactions
9. Since the Chinese mainland announced that it would close the bitcoin trading at the end of October, bitcoin prices have experienced a roller coaster market. It once dropped to about 25000 yuan in September, and then rose to nearly 40000 yuan in October, which seems to show its tenacious vitality< However, this high price is very fragile
Chinese mainland bitcoin game player has been transferred to Hongkong after a lot of closes. The exchange can be used as futures by some exchanges, which is about 10-20 times of leverage. Combined with the over-the-counter trading, even after the "outbreak", the trading volume is only 1 / 100 of the previous on-the-spot trading volume. It can be seen that the number of players participating in bitcoin trading has been greatly reced, and a few speculators have managed to maintain the bitcoin price with the help of leverage< However, it is hard to imagine that these speculators are totally supported by free funds. Considering the borrowing cost of funds, the fact that the world has entered a cycle of monetary tightening, and the increasing attention paid by more and more countries to the risk of speculating in digital assets, regulatory policies will become more and more intensive. I am afraid that this kind of high price without foundation will not last for too long. Could it be that a few early hoarders deliberately made the game in order to find the receiver? It's not impossible
on the other hand, the official digital currency is also under intensive preparation. In fact, since the second half of 2016, there has been more and more discussion on official legal digital currency in China. In September 2017, China Banknote Printing and Minting Corporation also set up a blockchain Research Institute to track and study digital currency technology, which is generally regarded as a precursor for the Chinese government to accelerate the research and launch of digital currency. China is likely to be the first country to issue official legal digital currency
of course, this process will not be achieved overnight, and the final proct will be quite different from digital assets such as bitcoin, which is more like a digital legal currency based on cryptography. Now the suspense is whether the settlement mode of this new legal digital currency is real-time Centralized Settlement similar to the current online banking mode, or offline point-to-point settlement. If it is the latter, the application prospect will be broader, and the use may be more comprehensive
in the final analysis, money is the medium of transaction and the means of storing wealth, and its essence is the embodiment of credit. Therefore, in order to play the role of money in a long period of time, this medium must have considerable credit. At present and in the foreseeable future, the strongest credit still comes from the powerful means of the government. If someone takes out the golden yuan certificate in the period of the Republic of China, it can only be called antique
therefore, in the long run, I am not optimistic about privately issued currencies. In particular, bitcoin has a logic defect in the underlying design that is difficult to last. So now we see the phenomenon of "capacity expansion", and every time this "correction" is harmful to its credit
however, even if bitcoin and other private digital currencies can not become the mainstream, blockchain technology has great potential. For example, digital property certification. We can imagine that in the rental market, if the law forces the landlord or intermediary to show the ownership certificate of the house with official or third-party certification and based on blockchain technology before renting the house, then the problem of fake houses will be much less
on this basis, it can also make remote online mortgage and transaction possible. The digitization of assets will make the transaction more convenient, which can be applied in many fields, and even for direct international transactions, such as long-distance mortgage and transaction of bulk commodities, futures and valuables (real estate, jewelry, antiques, art, etc.)
of course, all these also need supporting laws. Only when there are clear precedents, can it play a role in the future property rights protection based on blockchain and build up public confidence in it“ "From zero to one" will be very slow, but once it breaks through the critical value, with the first person to eat crabs, then "from one to ten thousand" will be completed quickly
in addition, cooperation between countries is also indispensable to expand the scope of application. Digital technology is inherently easy to spread across regions and international. When the new technology has accumulated and pieced together the required jigsaw puzzle, the breakthrough from quantity to quality is only the last layer of window paper. The breakthrough is inevitable. The chance is just who will finish it. Everyone is running like crazy, but history will only remember the first one who crossed the finish line
as a new thing, the application scope and depth of blockchain still need to be explored, just as at the beginning of the birth of electric power, people don't know its use. However, with the integration of human behavior with Internet and digital technology becoming more and more in-depth, the prospect of cryptography technology similar to blockchain must be unlimited.
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