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Is virtual currency and foreign exchange the same nature

Publish: 2021-05-20 17:12:45
1.

virtual currency and electronic currency are not the same concept

the definition of e-money is to convert a certain amount of cash or deposit from the issuer and obtain data representing the same amount. By using some electronic methods, the data can be directly transferred to the payment object, so as to pay off the debt. E-money means that consumers pay traditional money to issuers of e-money, and issuers store legal money of equal value with traditional money in electronic devices held by consumers

electronic currency is the electronization of the legal tender, including our common bank cards, Internet banking, electronic cash, etc., as well as the third party payment developed in recent years, such as Alipay, fortune paid and so on. No matter what form these electronic currencies are and through which institutions they circulate, their original source is the legal money issued by the central bank

but virtual currency is the electronization of illegal currency, and its original issuer is not the central bank. For example, Tencent Q currency and other game currency, such virtual currency is mainly limited to circulation in a specific virtual environment. After the emergence of bitcoin, through the blockchain technology to better solve the problem of decentralization, distrust, to achieve global circulation, is sought after in the world. Electronic currency and virtual currency are collectively referred to as digital currency

2. It's not a concept. Virtual money includes electronic money
1. Network virtual currency can be roughly divided into two categories:
the first category is familiar game currency. In the era of stand-alone games, the protagonist accumulates money by knocking down the enemy, entering the gambling house to win money, and uses these virtual game data to buy Herbs and equipment, or in some special games as a scoring unit to increase the fun of the game, which is an embodiment of the player level. But it can only be used in your own game console. At that time, there was no "market" between players. Since the establishment of Internet portal and community and the realization of 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 category refers to bitcoin, Ruitai coin, Laite coin, Weimeng coin and other digital cryptocurrencies
2. Electronic money refers to the exchange of a certain amount of cash or deposit from the issuer and the acquisition of data representing the same amount. By using some electronic methods, the data can be directly transferred to the payment object, so as to pay off the debt.
3.

foreign exchange refers to the price of one country's currency expressed in another country's currency, or the price ratio between two countries' currencies. The foreign exchange market refers to the trading place that is engaged in international foreign exchange trading and adjusts the supply and demand of foreign exchange. Its function is to manage monetary goods, that is, the currencies of different countries

What is foreign exchange for foreign exchange can be used as an investment transaction to earn intermediate profits through the exchange rate difference

in fact, it's very simple, that is, trading "money" itself

because you are not buying something, this kind of transaction will confuse people's understanding of transaction

the purchase of currency is regarded as the purchase of shares in a particular country, which is a bit like the purchase of shares in a company. The price of money directly reflects the market's judgment of a country's current and future economic situation

Generally speaking, the exchange rate of a country's currency and that of other countries reflects the comparison of the economic conditions of the country and other countries

so when you buy yen, that is to say, you invest "a share" in the Japanese economy. You're betting that Japan's economy will perform well and even get better over time. Once you sell those "shares" to the market, your hope is to profit from them

4. There is room for speculation, cash convenience, and then the legal protection of the formal can.. The maturity of traffic and bitcoin is relatively high.
5.

Mobile 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

6.

Differences between foreign exchange and foreign currency:

1. Different concepts

foreign currency is the abbreviation of "foreign currency", which refers to the currency of other countries or regions other than domestic currency

foreign exchange refers to various payment means in foreign currency or in foreign currency used for international settlement of claims and debts

2. Different functions

foreign currency is commonly used in foreign settlement business caused by economic activities such as trade and investment. Foreign currency refers to a kind of other currency used in an official currency area or the demand for payment made by using a kind of other currency

Foreign exchange is a kind of special business activity that converts a country's currency into another country's currency in order to pay off international creditor's rights and debts. It is short for foreign exchange

Foreign currency is a static concept, which refers to the means of payment that can be used for international settlement expressed in foreign currency

Foreign exchange is a dynamic concept, which includes credit instruments and securities expressed in foreign currency, such as bank deposits, commercial bills, bank drafts, bank cheques, foreign government treasury bills, short-term and long-term securities, etc

extended information:

foreign exchange in a broad sense refers to the flow of money among countries and the conversion of one country's currency into another country's currency, so as to pay off international creditor's rights and debts. In fact, it is the creditor's rights that the monetary Administration (central bank, monetary administration, foreign exchange stabilization fund and the Ministry of Finance) can use in the event of balance of payments deficit in the form of bank deposits, treasury bonds of the Ministry of finance, long-term and short-term government bonds, etc

narrow sense: a variety of payment means expressed in foreign currency, which are generally accepted by all countries and can be used for international debt settlement. It must have three characteristics:

affordability (assets that must be expressed in foreign currency), availability (claims that can be compensated abroad) and convertibility (foreign currency assets that can be freely converted into other means of payment)< br />

7.

Foreign exchange and exchange rate are not the same thing. Foreign exchange is the form of foreign currency. Exchange rate is the ratio of one country to another

Foreign exchange is the creditor's right that the monetary Administration (central bank, monetary administration, foreign exchange stabilization fund and the Ministry of Finance) can use in the event of balance of payments deficit in the form of bank deposits, treasury bonds of the Ministry of finance, long-term and short-term government securities, etc

including foreign currency, foreign currency deposits, foreign currency securities (government bonds, treasury bonds, corporate bonds, stocks, etc.), foreign currency payment certificates (bills, bank deposit certificates, postal savings certificates, etc.)

Exchange rate is also called foreign exchange rate. Foreign exchange rate or foreign exchange market refers to the exchange rate between two currencies. It can also be regarded as the value of one country's currency to another. Specifically, it refers to the ratio or price of one country's currency to another country's currency, or the price of another country's currency expressed in one country's currency

Exchange rate fluctuation has a direct regulatory effect on a country's import and export trade. Under certain conditions, the devaluation of domestic currency, that is, the decline of exchange rate, will promote exports and restrict imports; On the contrary, the appreciation of domestic currency, that is, the rise of exchange rate, will restrict exports and increase imports

extended data:

exchange rate is the most important adjusting lever in international trade

because the cost of goods proced by a country is calculated according to the currency of the country, in order to compete in the international market, the cost of goods must be related to the exchange rate. The level of exchange rate will directly affect the cost and price of the commodity in the international market, and directly affect the international competitiveness of the commodity

from the perspective of imported consumer goods and raw materials, the decline of exchange rate will cause the domestic price of imported goods to rise. As for its impact on the general price index, it depends on the proportion of imported goods and raw materials in the gross national proct

On the contrary, if other conditions remain unchanged, the price of imported goods may decrease, and the degree of its impact on the general price index depends on the proportion of imported goods and raw materials in the gross national proct

8. Hello, both of these are not easy, because only 5% of the people in the financial market can make money, and the remaining 95% are money losers
in addition, it shows that foreign exchange trading in the mainland is illegal, and any foreign exchange company is illegal, so don't participate in illegal activities
in addition, digital currency is not protected by law, so please don't do it to avoid being cheated
9. no The currency that can be widely circulated internationally is foreign exchange. For example, Peru's Peruvian currency cannot be widely traded internationally, so Peruvian currency does not belong to foreign exchange. However, such as US dollar, Japanese yen, euro, Swiss Franc (Swiss Franc), etc., can be exchanged in international financial banks
there are certain risks in storing foreign currency. If a currency circulates to a foreign country, its circulation rate will decrease, and its quantity will decrease in its official circulation area. In this way, its official central bank will be forced to increase its number, which will lead to the devaluation of the currency under certain conditions. For example, in 2002, the US dollar depreciated 15% against the euro in the short term, leading to the depreciation of the US dollar and foreign currency reserves in the euro area
extended information
investors can predict the future trend by reading the news, and can invest in the currency through currency dealers. If the fact is better than expected, the currency will increase in value and the investors will make profits
let's take a simple example. If the exchange rate of pound sterling to us dollar is 1:1.5, we can exchange 100 pound sterling to 150 dollar Sterling through traders. A few days later, the annual GDP results released by the United States are better than expected analysis, and the exchange rate becomes 1:1.4. Then we can exchange 150 dollar sterling, and we will get 107 pound sterling, so there will be 7 pound profit
this is a very simple core of the foreign exchange market. When traders talk about buying or selling goods, they are talking about exchanging one currency for another, and then making profits from it
source of reference: Internet foreign currency
source of reference: Internet foreign exchange
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