The utility of virtual currency

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

1. The essence of interpretation is different:

virtual currency: virtual currency refers to non real currency

currency: currency (CCY) is the medium of purchasing goods and preserving wealth. It is the contract between the owner of property and the market about the right of exchange. In essence, it is the agreement between the owners

2. Different types:

virtual currency: game currency, special currency, etc.

currency: coin, paper currency, deposit currency, etc.

extended data:

formation of virtual currency market:

Internet leads to the emergence of a new market, which is a virtual market based on cyberspace. The Internet provides a lot of communication places for consumers, and also provides business market for enterprises. Enterprises must change from proct centered to service centered to customer centered

with the development of computer artificial intelligence technology and database technology, enterprises can conveniently collect customers' information, understand customers' needs in time, change business strategies and grasp economic arteries in real time

The form and expression of "virtual" is not the first important, the first important is the internal value. In other words, what is the relationship and difference between the value of virtual currency and that of general currency. In view of the depth of the background of the problem, we need to stand higher in the starting point of the research. The problem of currency is the problem of modernity, and the problem of virtual currency is the problem of post modernity. They do not share the same basic paradigm. It is the difference of paradigm, not virtual phenomenon, that leads to the difference between them
the formation mechanism of value is different
the value basis of general currency and virtual currency is different, the former represents utility, the latter represents value. From the point of view of behavioral economics, money, as a general equivalent, is called value in language, but it actually refers to utility. Virtual currency does not represent the "effect" of general "price", but the value itself. Virtual currency is not a general equivalent, but a manifestation of value relativity, or a symbol; It can also be said that virtual currency is personalized currency. In another way, it can also be called information currency. Their commonness lies in that they are symbols of uncertain value and relative value. When we say that, the traditional meaning of currency has been broken through. Money in its original meaning can only be a special case of the new currency in a broader sense. Money can be used as the symbol of general equivalent or relative value set
the monetary decision mechanism is different
the general currency is decided by the central bank, and the virtual currency is decided by indivials. The sovereignty of general currency is in the center of the Republic; The sovereignty of virtual currency lies in distributed indivial nodes. From the perspective of information economics, general currency is a special case of virtual currency. The special points of this special case are: first, the reference point does not change. Therefore, value is specialized from a set to a recible value. When the reference point remains unchanged, value is equivalent to utility; Second, the gain and loss of utility relative to the reference point remain unchanged. This means that the value of reference point is a stable rational value and equilibrium value. In a rational economy, the reference point may remain unchanged, but it is still a scattered set. The difference is that every point (the actual transaction price) of this decentralization is unstable, and only the equilibrium value is stable; But in the value concentration of virtual currency, every point may be stable, on the contrary, the rational equilibrium value may be unstable. Reflecting on the monetary decision mechanism, the central bank is the personified representative of a fixed reference point of rational value, while the virtual money market (such as stock market and game money market) is determined by forces other than the central bank. In this sense, some people in economics call the stock market as the virtual money market, and the economy formed by the stock market and derivative financial market as the virtual economy. The essence of virtual economy is information economy with indivial as the center
the value exchange mechanism is different
the value conversion of general currency is completed in the money market; The value conversion of virtual money is completed in the virtual money market. The value exchange between general currency and virtual currency is completed through the overall exchange of the two markets. Under special conditions, there is an immature exchange relationship between indivial markets. Therefore, it can be said that general currency and virtual currency are in different markets. Fisher Equation (QP = MV) describes the value conversion relationship between commodity market and money market; The extended Fisher Equation (MV = BH) describes the value conversion relationship between money market and virtual money market. Some people worry that the game virtual currency may cause inflation. This is because he does not understand the market exchange mechanism of virtual currency and confused the money market with the virtual currency market. Just as the imbalance of supply and demand in the commodity market can not directly lead to the imbalance of supply and demand in the money market, it must lead to inflation by issuing more money in the overall market; The imbalance of supply and demand in the virtual money market can not directly lead to inflation in the money market. The key to the problem is whether a unified virtual money market has been formed. The stock market is a unified market, but the game market is not. For example, the ratio of a game virtual currency to RMB may initially be 800000 to 1, and then it may change to 8 million to 1. Maybe we can buy a castle's virtual currency today, and maybe we can only buy a Tomahawk tomorrow. This phenomenon is indeed possible; If virtual currency forms a unified market, it may indeed exert pressure on the money market. The problem is that there is no such unified market. The issuers of game currency are independent of each other and do not have the status of financial subject, let alone the exchange with money at the level of financial market. What's more, whether it's base money or value-added money, the amount of money (m) and the level of money price (V, i.e. velocity of circulation) have not changed, so we can't think that there will be monetary inflation or deflation. For the current game currency depreciation phenomenon, it is better to explain that the service conditions of a game as a value-added service have changed. Due to the general improvement of the level of players or the increase of the number of players, the demand for virtual currency increases, and the price of services and virtual currency decreases. As a result of this change in the supply and demand conditions of services, service prices have declined. This is a phenomenon that can be explained by a real commodity market

The role of digital currency:

1. First of all, the central bank's digital currency can provide a huge data base for monetary policy and macro Prudential policy, so that the regulatory authorities can collect real-time trading books of different frequency and different institutions according to their needs, and it is complete and real. This information advantage can help the central bank use policy tools more accurately and flexibly

extended data:

digital currency can be considered as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency are mainly reflected in three aspects: because it comes from some open algorithms, digital currency has no issuing subject, so no one or institution can control its issuing; Because the number of algorithm solutions is fixed, the total amount of digital currency is fixed, which fundamentally eliminates the possibility of inflation caused by the overuse of virtual currency; Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough

First, personalized virtual currency will have information function in addition to liquidity and value-added
the biggest difference between personalized virtual currency and stock market is not only the integrated pricing function with reference points, but also the distributed pricing function with reference points. This process is not completed in the virtual money market, but in the development of personalized modern services. For example, in the process of indivial auction, the bargaining process combined with frame should include not only a process of utility exchange leading to value unification, but also a process of value realization leading to value diversification. This means that virtual currency must be combined with the development of personalized information service instry. Although the stock also has certain information function, but this kind of information is subordinate, it is instry centered
in the future, virtual currency can simultaneously perform three functions of currency, stock and information card: on the one hand, it can obtain liquidity as the base currency (or exchange with the base currency); On the one hand, it has value-added function; The most important thing is that it can also add information. And this kind of information is just a kind of interface information to be completed, which needs to continue to realize its value in the service instry
secondly, personalized virtual currency will have its own cultural value orientation
in the future personalized virtual currency trading market, price level information similar to today's stock index will also be formed. But different from stock index, personalized virtual currency price index will not reflect investment value-added information, but entertainment value, cultural value, spiritual value, freedom value and personality value similar to cool value. For example, the game index may not reflect its investment value, but the value of indivial freedom
for another example, in the super girl vote, it reflects the popularity index, not the professional index. If it is not SMS voting, but a personalized IC card integrated with currency and derivative financial instruments, such as corn card and fans card, the value of the card will fluctuate with the fashion information, reflecting the freedom of personal choice. Once it is combined with the development of personalized service instry, it will form a benign interaction mechanism
thirdly, personalized virtual money market will play a role in promoting traditional instries
with the development of game instrialization and instrial Gamification, indivial freedom has been comprehensively developed, that is, personalized self realization, which will become the ultimate goal of instrial upgrading. Traditional instries, including proct manufacturing and service instries, will take the satisfaction of spiritual and cultural values as the pursuit of added value of procts and services. In the context of the development of this instry, the role of personalized information service instry in driving traditional instries may be realized through the guidance of personalized virtual money market. In other words, after the procts and services of traditional instries have reached the optimal homogenization, they will eventually find out under the guidance of the information market that those things that are cool enough will sell well, and those that are not cool enough will not sell
the future instrial development will need not only GNP type stock index guidance, but also GNH type cool value index guidance. Japan, which has put forward GNC (National cool value), is moving towards such an instrial development mode, thus following the Meiji Restoration, moving towards the road of modern instrial development. The United States and South Korea have also come to the front in this regard. China is facing the choice of the second modernization. Many "little things" like virtual currency actually contain significant information