The function of virtual currency in economy

1.

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

2.

Virtual currency is not a real coin, but a virtual thing. Virtual currency also has its own value, because it is a kind of training for investors

they think that some virtual currencies will have a great market, so at this time, as an investor, unique vision is very important. If you enter too late, then the virtual currency may not have any value. If you enter too early, it may not be what you expect. So at this time, the entry time is very important

So virtual currency can also make us grow rapidly, which is the judgment of the overall situation and the learning of knowledge. So virtual currency, for us, is a kind of income. Of course, we don't know how much this kind of income is in the early stage. Secondly, it enables us to learn quickly and improve our knowledge literacy, and it can also learn through continuous practice and combine practice with learning. These are exactly what we need to do, He also plays the role of supervision

3. What is virtual currency? Virtual currency refers to non real currency. Due to the development of Internet society, it was born. Network virtual currency can be roughly divided into:
the first category is familiar game currency
since the Internet has established a portal and community to realize the game networking, there has been a "financial market" for virtual currency, where players can trade game currency
the second type is the special currency issued by the portal website or instant messaging service provider, which is used to purchase the services in the website. The most widely used is Tencent's q-coin, which can be used to purchase membership, QQ show and other value-added services
the third kind of virtual currency on the Internet, such as bitcoin (BTC), Wright currency (LTC), etc. It is mainly used for Internet financial investment, and can also be directly used in daily life as a new currency
from the above classification, we can see that the impact of different types of virtual currency on our economic life is divided into fields and groups. Mainly in the field of Internet game crowd and network service users are most affected
the functions derived from bitcoin and directly used in daily life have been declared illegal by the state financial regulatory authorities. The impact on people's lives is invisible.

4. If virtual currency and traditional currency can be exchanged freely, it will inevitably impact the traditional economy. Including but not limited to money laundering, monetary policy implementation and regulation.

5. I suggest that the authoritative department of the family understand that the family is in an attitude, and now the platform should be cautious and focus on it. Let's recommend a teacher to check online

6. There will be some price rection of imported goods. Take a look at the following article.
1. The benefits of RMB appreciation:
(1) RMB appreciation may mean the improvement of the status of RMB and China's economy in the world economy
1) the wealth in the hands of the Chinese people is more valuable. As soon as the RMB appreciation, the money in the hands of the people will be more valuable, and the global ranking of China's per capita GDP can also move forward
2) the pressure of China's foreign debt has been reced and its purchasing power has been enhanced
for example, who is paying to maintain the daily operation of the US government, which is known as the "global leader"? The answer, of course, is the vast number of taxpayers in the United States of America. The answer is not all right. Because the current federal government of the United States has a huge fiscal deficit, the contribution of taxpayers alone is not enough to spend, so it has to borrow a lot. And who is the biggest creditor? It's Japan and China. A large part of China's foreign exchange reserves of more than 300 billion US dollars are purchased from US government bonds
China has become one of the biggest creditors of the world's most powerful empire. This fact itself shows China's growing economic strength and international influence. Last year, China's contribution to global economic growth was second only to the United States; Its contribution to Global trade growth is second only to the United States and Japan* It's a good thing that RMB, which has economic strength, naturally has a greater say in international affairs
3) concive to the development of import instry: Shao Jinyang, deputy director of Sinopec, said in an interview: "if RMB appreciation, overseas assets will be cheaper for us." If the RMB appreciates by 5%, Sinopec's oil imports in 2003 will cost more than $100 million less at current prices< (2) the prospect of RMB appreciation is more and more clear
because, as before the policy of overestimating the value of RMB, which was forced to give up before 1994, it is also difficult for people to underestimate the value of the RMB. Because on the issue of exchange rate, policy intervention can take effect temporarily, but ultimately the market has the final say. As long as China can maintain high economic growth and promote the process of RMB's full convertibility, it will not be far before RMB appreciation becomes a regional and even world currency. At present, there is not enough evidence to show that China's economic growth will suddenly stop in the near future; China's monetary authorities have repeatedly said that the RMB will be fully convertible
in fact, the rise of RMB has begun, starting from the sharp depreciation on January 1, 1994. This year, the official exchange rate of RMB was close to the market exchange rate, which was adjusted from 5.80 yuan to 8.70 yuan, a depreciation rate of 33%. From then on to the end of last year, according to the statistics of the State Administration of foreign exchange, the nominal appreciation rates of RMB against the US dollar, the euro (before 1999, it was the German mark) and the Japanese yen were 5.1%, 17.9% and 17% respectively; Considering inflation, the real appreciation was 18.5%, 39.4% and 62.9% respectively. The IMF's results reflect the same trend< However, at present, there are no realistic conditions to ince RMB appreciation< Second, the disadvantages of RMB appreciation:
(1) China's economic growth will slow down e to the influence of RMB appreciation. There are three aspects:
1) RMB appreciation will affect China's foreign trade and export. The appreciation of RMB will raise the price of Chinese procts, increase the cost of capital investment, and bring about the decline of the competitiveness of China's export procts, thus causing the depression of the domestic economy
the appreciation of a country's currency leads to the decline of the competitiveness of its export procts, which leads to the depression of the domestic economy. Japan has learned a bloody lesson on this issue. In 1985, in order to curb the tide of cheap Japanese exports, the financial leaders of the United States, France, Germany and Britain took corresponding measures to force Japan to sign the "Plaza Agreement", thus forcing the yen to appreciate by 30%. Since then, in the 10 years from 1985 to 1996, the ratio of yen to us dollar has risen from 250:1 to 87:1, with an appreciation of nearly three times. The "Plaza Agreement" is recognized as the main cause of Japan's economic recession. Now Japan just wants to pass this tragedy on to China
2) it will also affect the comprehensive competitiveness of Chinese enterprises and many instries. Although "made in China" has become the main proct in the world market, a fatal weakness of Chinese procts is that they have not yet formed their own brand. The current market share mainly depends on the low price of Chinese procts, and they are not in the dominant position in the competition. If the competitiveness is hit, it will be terrible
the biggest finding of the survey of Chinese entrepreneurs is that 82.4% of enterprises believe that the change of RMB exchange rate will have an impact on their business activities. For the enterprises that are active on the stage of China's economy, RMB is just like air and water
for example, Huang Hongsheng, the chairman of the board of directors of Skyworth Group, is worried about the prospect of appreciation. He believes that most of China's exports are low-tech procts and few high-tech procts. If RMB appreciation, China's international status may be improved, but the global competitiveness of manufacturing instry will graally lose. He calculated that if the RMB appreciation is 10%, the export price will increase by 10%, and the profit of domestic manufacturing enterprises is only about 5%. With some financial discount, the average profit level of Chinese enterprises is less than 3%. How can an average profit margin of 3% adjust the appreciation pressure of 10%? There are bound to be large losses
taking Skyworth as an example, Huang Hongsheng outlined the highest psychological bottom line for Chinese enterprises to appreciate the RMB: "it's difficult for us to make a big improvement in the US market now, because the prices of other world factory procts are as low as ours. For example, the color TV sets from Mexico, the procts from Europe and Turkey are very cheap, so it is impossible for us to raise a dollar. We hope to increase sales by 30 million US dollars in the US market this year, but if the RMB appreciation, then this plan will be aborted. "< Another example: compared with manufacturing enterprises, those foreign trade enterprises at the forefront of exchange rate risk are the strongest perceivers of change. For export-oriented enterprises, the volume of export is much larger than that of import. Therefore, Huang Hongsheng said that the appreciation of the RMB will cause a devastating blow
Huang fangning, assistant to the general manager of Oriental Scientific Instruments Import and Export Group, told reporters about an example of loss caused by the appreciation of euro, that is, the depreciation of RMB. At the beginning of 2003, they had a deal. When they signed the contract, the exchange rate between Euro and US dollar was still 1:0.9. When they delivered the goods, it rose to 1:1.1. They did not take measures to lock the exchange rate, so they lost money“ Even if we have 10% or 20% of the intermediate profit, it will not be able to offset the loss of appreciation. We have to make it up by ourselves. "
another example: some multinational enterprises that used to proce in China may transfer their investment to Mexico or Malaysia. In the 1980s, Taiwan also experienced the pressure from China. After the exchange rate of the Taiwan dollar against the US dollar rose from 1:40 to 1:25, some traditional low value-added instries moved to Dongguan one after another. Similarly, some experts have analyzed that if the RMB appreciation, these traditional instries will be transferred from Dongguan to less developed regions such as Central Asia and Vietnam. Originally, there are many areas in China, such as the west, which can accommodate these instries. However, because the monetary adjustment is aimed at all enterprises, China may be forced to experience the process of instrial hollowing out earlier
3) it will also damage the long-term development of China's economy and make China's finance closer to the edge of crisis. The appreciation instry may ruin the good investment environment created by years of hard work in China, while the new overseas investment will be reced, and the driving force of China's economic growth will be greatly reced, because such investment will become relatively expensive. On the other hand, the speculative activities of international hot money may increase, making China's finance closer to the edge of crisis
for example, from the Mexican financial crisis to the Asian financial crisis, it is obvious that the governments of these countries adopt high interest rate monetary policies to absorb domestic funds, but the effect is just the opposite. Due to the lack of internal funds, they also attract a large number of international hot capital flows, resulting in the deviation of capital flows and the contradiction of capital structure, It has buried the hidden danger of currency crisis; At the same time, the contradiction between the inflow of foreign capital and the exchange rate of the local currency has been generated, triggering the exposure of economic structure problems, or the emergence of a bubble economy or economic downturn, thus forcing the implementation of the currency devaluation policy, which directly leads to the transaction risk of money market and securities market, and finally leads to the financial crisis.
what is financial crisis? It's like a poor family with a rich relative who brings them a temporary "affluent" life, so outsiders lend the family a lot of money because of their wealth. Unexpectedly, the rich relative of the family suddenly disappears, leaving the family only a high debt platform, which leads to friends who borrow a lot of money. At one time, there were four crises
it can be seen that if the RMB appreciation, it will lead to: e to the lack of internal capital, it will attract a large amount of international hot money inflows, which will lead to the deviation of capital flow and the formation of capital structure contradictions, which will bury the hidden danger of currency crisis
4) in addition, after the appreciation, it will inevitably lead to the prevalence of speculation: e to the rapid increase in the wealth of the people expressed in US dollars, The stock market and real estate have reached a climax. Some "bubbles" have further expanded or created new "bubbles". Polarization has continued to expand, resulting in the inevitable prevalence of speculation.
for example, many retail investors in the United States have opened RMB savings accounts in the hope that one day changes in the RMB exchange rate system will benefit them. Of course, these retail accounts are not real RMB accounts, because it is illegal to open RMB accounts overseas according to China's non convertible exchange rate system. They open savings accounts denominated in RMB. The deposits in the accounts are US dollars. However, based on the spot exchange rate of RMB, these accounts will appreciate or depreciate e to the fluctuation of spot exchange rate between RMB and US dollars. Frank trotter, everbank's chief executive, said the company's move had a strong impact on some customers. Since the RMB exchange rate began to show signs of imbalance more than a year ago, these customers have been asking for RMB denominated accounts. Everbank launched the new account on July 1 and put more than $6.5 million into it in the following weeks< (5) in addition, RMB appreciation has many disadvantages:
RMB appreciation will bring more pressure on China's deflation; The appreciation of RMB will surely bring down the price, because the price of imports will fall
RMB appreciation increases employment pressure and worsens the current employment situation: foreign invested enterprises are an important channel to attract domestic labor force, especially now, so RMB appreciation will not only affect the attraction of foreign investment, but also aggravate the deterioration of the current employment situation< br />

7. Market economy is inseparable from money. In market economy activities, money not only acts as the medium of commodity circulation, but also as the representative of property and the tool of credit activities. A series of economic activities related to money revenue and expenditure, such as transactions and lending, are financial activities.
the earliest commodity exchange in human history is direct barter exchange, Barter. Barter without money often takes a lot of trouble. If Party A needs Party B's goods, but Party B doesn't need Party A's goods, they can't conclude a deal. Its disadvantages become more and more obvious with the expansion of the scope of commodity exchange.
1. Money performs the function of the medium of exchange, People graally get used to using some kind of commodity which is easy to be accepted by people to act as a commodity exchange; Middleman;, First, we try to exchange the goods we proce for this kind of goods, and then use it to exchange for the goods we need, which leads to the emergence of money.
2. The function of currency executing the unit of valuation
the function of currency executing the unit of valuation is to give a certain price to the goods. There are tens of millions of goods in the market, and the evaluation of the effectiveness of the same kind of goods varies greatly, Therefore, it is often difficult for people to understand the exchange ratio of various commodities, and the transaction is naturally difficult to be fair. Because the currency that can be obtained after a commodity is sold is the price of the commodity, once the commodity has formed a widely accepted price in the market transaction, people no longer need to remember the exchange ratio of various commodities one by one, As long as you look at the price, you can see at a glance.
money has gone through the evolution process from physical money to metal money, and then from metal money to paper money, Accounting currency in the form of bill and various kinds of electronic currency in recent years have replaced some paper money for circulation.
money can be easily exchanged for a variety of goods and finance at any time. Therefore, in addition to performing the functions of exchange medium and pricing unit in commodity exchange, money itself has become the representative of property, It can not only be stored as future purchasing power, but also realize value-added by transferring to others for interest. Transferring the right to use currency for a period of time is the lending activity of currency.
in the lending activity of transferring the right to use currency, the relationship between the two parties is a kind of creditor's right and debt relationship. The creditor temporarily transfers the right to use currency for a period of time, The user of money (debtor) has the obligation to return after a certain period of time and pay a certain amount of interest