The relationship between digital virtual currency and bitcoin
1. The concept range is different. bitcoin is a kind of digital currency, and the concept of digital currency covers bitcoin
However, some digital currencies have independent issuers The biggest difference between bitcoin and other virtual currencies is that the total quantity of bitcoin is very limited and it has a strong scarcity. The monetary system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 milliondigital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy. Bitcoin is a digital currency
digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold
today's digital currencies, such as bitcoin, lettercoin and ppcoin, are electronic currencies created, issued and circulated by means of check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency
illegal digital currency
in recent years, "virtual currency" represented by bitcoin, Ethernet currency and Leyte currency has been traded centrally on some Internet platforms. With the help of financial technology, the price of these "currencies" has graally spread to investment, financing and other financial fields, which has aroused wide attention from all walks of life
not long ago, the people's Bank of China and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly regulated the relevant behaviors. Experts pointed out that "virtual currency" is not legal tender (legal currency) issued by monetary authorities, but a specific virtual commodity in essence
therefore, it is undoubtedly a great legal and economic risk to think that "virtual currency" has or will have the nature of legal tender and to carry out speculation, network fund-raising, lending and financing
although bitcoin and Ethernet are both digital currencies, unlike bitcoin, the main purpose of Ethernet is not to build itself as a payment substitute, but to facilitate and monetize the operation of Ethereum, so that developers can build and run distributed applications
in fact, virtual currency covers a wider range, including not only q-coin, y-coin and various game coins, but also bitcoin, Leyte coin, doggy coin, ether coin, Ruitai coin and tokens of different crowdfunding projects launched by European crowdfunding platform
cryptocurrency specifically refers to bitcoin, Leyte coin, dogcoin, ether coin, Ruitai coin and the tokens of different crowdfunding projects launched by European crowdfunding platform.
when the economy is stable, it doesn't rise. When the economy is in turmoil, people begin to store digital currency. Of course, it is convenient for some corrupt elements
now the economy is stable, the digital currency is in a bear market, the financial crisis, the crisis, and only when there is a crisis can there be an opportunity. At that time, the rapid growth of bitcoin was the opportunity in the financial crisis. Don't worry, there will be a bull market in digital currency, which is expected to come in the second half of next year
There are two relations between bitcash and bitcoin: bitcash is the bifurcated and competitive currency of bitcoin{ RRRRR}
Second, competitive currency. As the name suggests, they are two competing currencies. It is just like the competition of two kinds of homogeneous goods in the market, competing for market share. In the virtual digital currency market, the market share is so large that more people hold one kind of currency, the number of people holding another kind of currency will be relatively reced, forming a competitive relationship between you and me
in these two relationships, competitive currency is easier to understand, while forked currency is more difficult because it is a technical problem
is the relationship between the two currencies clear now
blockchain technology is not only the underlying technology of bitcoin, but also the core and infrastructure of bitcoin bitcoin has been running without any centralized organization operation and management. Later, bitcoin technology was abstracted, which was called blockchain technology or distributed ledger technology
extended data:
disadvantages of blockchain technology applied to digital currency:
first, there is no circulation management organization for "decentralization" blockchain technology is essentially a distributed database system with one-way linked list logic structure and P2P network design mode, which determines that there is no unified central control system for virtual currency based on blockchain technology
Second, it is difficult to effectively control the quantity supply the circulation of virtual currency based on blockchain technology is fixed, and according to Fisher Equation, the total transaction volume of the whole society under a certain price level in a certain period has a certain proportion with the required nominal currency volume, while the constant currency volume obviously can not meet the requirements of the growing total price of social goods Thirdly, "mining mechanism" is difficult to create recognized value bitcoin itself has no value and no national credit support. Some people think that "by continuously consuming computing power and energy to inject value into virtual currency", but it is obviously not the most efficient choice to consume millions of calculations in order to find a hash value that meets the requirements Fourthly, procers and early holders are easy to get high seigniorage any virtual currency based on blockchain technology is held by a few people at the initial stage of its development. Take bitcoin as an example. At first, bitcoin was only a proct of a few people's game. The first bitcoin purchase in May 2010 was $10000 BTC's purchase of $25 pizza. The first bitcoin transaction completed in July of the same year was $0.04/btcMobile payment means that mobile clients use electronic procts such as mobile phones to make e-money payment. Mobile payment creates a new payment method and makes e-money popular. Because of the advantages of convenient and fast payment, eliminating counterfeit money, no change and so on, it is loved by many people< The Ministry of Commerce issued the "overall plan for the pilot project of deepening the innovation and development of service trade in China", and officially announced that the number of digital currency has expanded from the original 4 pilot cities to 28 , which means that digital currency is coming towards us. The same virtual currency and bitcoin, so these virtual currency can replace the status of paper money
Therefore, it is essentially no different from the paper currency RMB, and will not be wildly hyped like bitcoin. In a short period of time, virtual currency can not completely replace traditional currency. There are mainly two constraints: the first is the user's will, not everyone is used to this payment method; the second is the satisfaction of technical conditions, because the speed of transaction payment is mainly limited by the technical realization, and the goal of digital currency is only to replace part of the cash in circulation. So for a long time, it should be used in parallel with banknotes