The reasons for the restriction of virtual currency in China
Publish: 2021-05-24 23:46:08
1. At present, the trading of virtual currencies such as bitcoin in China is closed and cannot be traded in exchanges
virtual currency lacks supervision and is too free; Therefore, China's current virtual currency is still in a serious regulatory scope; Of course, the research on virtual currency blockchain technology is worth trying.
virtual currency lacks supervision and is too free; Therefore, China's current virtual currency is still in a serious regulatory scope; Of course, the research on virtual currency blockchain technology is worth trying.
2.
Bitcoin is a kind of P2P digital currency
reasons for blocking:
1. 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
The transaction confirmation time is long. When bitcoin wallet is first installed, it will consume a lot of time to download historical transaction data blocks. While bitcoin transaction, in order to confirm the accuracy of data, it will take some time to interact with P2P network, and the transaction will be completed only after the whole network is confirmed The price fluctuates greatly. Due to the intervention of a large number of speculators, the price of bitcoin for cash fluctuates like a roller coaster. Making bitcoin more suitable for speculation rather than anonymous trading4. The public did not understand the principle, and the traditional financial practitioners resisted. Active netizens understand the principle of P2P network and know that bitcoin has no legal person to manipulate and control. But the public doesn't understand, and many people can't even tell the difference between bitcoin and q-coin“ "No issuer" is the advantage of bitcoin, but in the view of traditional financial practitioners, "no issuer" currency is worthless
extended materials:
the concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's idea, the open source software was designed and released, and the P2P network on it was constructed. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system
unlike most currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation
the decentralized feature and algorithm of P2P can ensure that it is impossible to artificially control the value of bitcoin by mass manufacturing. The design based on cryptography can make bitcoin only be transferred or paid by the real owner
This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount 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 millionbitcoin can be cashed and converted into the currency of most countries. Users can use bitcoin to buy some virtual items, such as clothes, hats and equipment in online games. As long as someone accepts it, they can also use bitcoin to buy real-life items
on February 26, 2014, Joe Manchin, a Democratic senator from West Virginia, issued an open letter to a number of regulatory authorities of the US federal government, hoping that the relevant authorities would pay attention to the status quo of bitcoin's encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency
from 12:00 noon on January 24, 2017, China's three major bitcoin platforms officially began to collect transaction fees
3. The people's Bank of China banned financial institutions from trading in bitcoin, saying that bitcoin is not a "real" currency. As far as the investment risk of bitcoin is concerned, the government's view may be reasonable
the media's hype about bitcoin has made more than one newspaper sneer: "at present, journalists recognize bitcoin more than investors as a reliable way to store wealth." Government departments around the world are also paying attention to bitcoin. Although the Chinese and American governments have not banned it, they do not encourage people to participate in it. Here we focus on two questions: why is bitcoin so important? Why doesn't the government like bitcoin
bitcoin is a virtual payment system, which is not controlled or governed by any central government or private institutions. Unlike Alipay or Paypal, the system has its own monetary unit (bitcoin) instead of Renminbi, US dollars or other legal tender. Strictly speaking, bitcoin has no physical form. Instead, it trades over the Internet, and users store their bitcoin in their wallets. The bank account books record the depositors' deposits and withdrawals. The public can not see these records, but it is legal for the government to ask to review these records. The account book of bitcoin is called "block chain". In theory, it is a public document (anyone can download a ), but the participants of bitcoin system can easily hide their identity, because bitcoin is sent to the address randomly generated by electronic money package, which is composed of letters and numbers. In other words, I can provide a new address for each transaction. So even if people can figure out how much bitcoin they can get, they won't know if I have bitcoin
Where can I get bitcoin? One way is through "mining.". This method is by no means easy, and the computing power required for "mining" is now more than most people can afford (according to the design of bitcoin system, it will be increasingly difficult to find bitcoin). I know it's too simple to say that. The fact is that bitcoin's revenue and expenditure books are jointly maintained by "miners" all over the world. Most of the "mining" groups (more than 60000 users) that "miners" participate in spend a lot of time and power, and some of them can get bitcoin. For the majority of non professionals, it is much easier to buy bitcoin online on the bitcoin "exchange" with regular currency. Until recently, Japan's Mt. GOx was the world's largest bitcoin "exchange.". In China, bitcoin "exchange" BTC China has the longest history
I'm not surprised that China has quickly become a major bitcoin market because bitcoin has performed so well as a private trading channel. It is estimated that in 2013, the trading volume of bitcoin in China (including Hong Kong) accounted for more than half of the global trading volume, and more than 100000 bitcoins were traded in "bitcoin China" every day. People's interest in bitcoin has increased greatly, especially in China, which has led to a significant increase in the value of bitcoin, from about $0.08 in June 2010 to $1124.76 in November 2013. This led to reports that a Norwegian man bought 5000 bitcoins for $26.60 in 2009 and sold them for $886000 in 2013
unfortunately, those who bought at the peak have found that their bitcoin has almost halved in value - the current price of bitcoin is less than $600. What's wrong
for some investors, it is a problem that bitcoin has no physical form. For example, the Norwegian man mentioned above forgot his e-wallet password and had to take great pains to delete and rebuild it. Mt. GOx is much larger. It stopped trading on February 25, 2014, and then filed for bankruptcy protection in Japan and the United States because it lost about 550000 bitcoins, which were worth $473 million at that time, accounting for 7% of all bitcoins in circulation. Attorneys for Mt. GOx said in court that the reason for the loss of the bitcoin may be that "there is an algorithm defect in the bitcoin software, and someone has used this defect to invade the bitcoin network.". Investors usually stay away from such risks that they cannot understand
however, the bigger problem with bitcoin is that the Chinese and US governments are not friendly to bitcoin. In December 2013, the people's Bank of China banned financial institutions from engaging in bitcoin trading, saying that bitcoin is not a "real" currency. The bank made it clear that investors were free to participate in bitcoin trading, but at their own risk. Analysts pointed out that the Chinese government is worried that bitcoin trading by financial institutions will threaten the government's control over the financial instry, especially in terms of money supply and cross-border money flows. Before too many parts of the economy become "invisible" and untraceable, the Chinese government must act< Almost at the same time, U.S. Department of Homeland Security agents detained more than $5.1 million of bitcoin in Mt. GOx's account. They said the money came from a criminal network called silk road. In January 2014, a director of MT GOx was charged with money laundering. However, the U.S. government did not declare bitcoin illegal. Instead, after explaining the tax law, it used an unconventional means to punish users of bitcoin. In March 2014, for example, the Internal Revenue Service announced that bitcoin was an asset, not a currency. This has a significant impact. For example, if an American taxpayer buys $500 of bitcoin and then uses them to buy $1000 of goods e to the rising market price of bitcoin, he has to pay tax for his income. If the taxpayer purchases foreign currency, he does not need to pay tax when the foreign currency appreciates against the US dollar. In addition, bitcoin miners must declare the value of bitcoins by the date they were discovered, not by the time they were spent. In other words, bitcoin related taxes need to be paid immediately, even if the "miner" intends to keep these bitcoins for a few years. Recently, the U.S. government announced that it would transfer the bitcoin detained from "Silk Road", but asked the buyer to show his identity, which would inevitably weaken people's desire to buy and rece the transfer price of these bitcoins
since December 2013, China's official attitude towards bitcoin has not changed. However, the Chinese government does not allow domestic banks to do business with bitcoin "exchanges", especially in transferring RMB deposits from personal accounts to "bitcoin China". On April 28, 2014, bitcoin China said on its microblog that its user account had voluntarily stopped accepting RMB deposits. Since then, China has not encouraged bitcoin "exchanges" to allow users to withdraw Renminbi from their accounts. The future of bitcoin in China is not good, only Hong Kong may be an exception; At the same time, there are bitcoin ATMs in Hong Kong
but as far as the investment risk of bitcoin is concerned, the government's view may be reasonable. Recently, it has been reported that a "mining" group has controlled more than half of the bitcoin computing power, which may enable the group to veto bitcoin transactions verified by other "miners", or reuse the same batch of bitcoin without fear of being questioned. For most people, these problems can be too complex to solve. However, in mid June, Peter Chen, the main developer and advocate of bitcoin, made a breakthrough; Peter Todd, who sold half of his bitcoin, said: "I've learned that the factors that make bitcoin motivating are flawed, for a number of reasons. To say the least, even if only a few of the main reasons are taken into account, it will make people worried when a mining group controls 50% of its computing power. "
the media's hype about bitcoin has made more than one newspaper sneer: "at present, journalists recognize bitcoin more than investors as a reliable way to store wealth." Government departments around the world are also paying attention to bitcoin. Although the Chinese and American governments have not banned it, they do not encourage people to participate in it. Here we focus on two questions: why is bitcoin so important? Why doesn't the government like bitcoin
bitcoin is a virtual payment system, which is not controlled or governed by any central government or private institutions. Unlike Alipay or Paypal, the system has its own monetary unit (bitcoin) instead of Renminbi, US dollars or other legal tender. Strictly speaking, bitcoin has no physical form. Instead, it trades over the Internet, and users store their bitcoin in their wallets. The bank account books record the depositors' deposits and withdrawals. The public can not see these records, but it is legal for the government to ask to review these records. The account book of bitcoin is called "block chain". In theory, it is a public document (anyone can download a ), but the participants of bitcoin system can easily hide their identity, because bitcoin is sent to the address randomly generated by electronic money package, which is composed of letters and numbers. In other words, I can provide a new address for each transaction. So even if people can figure out how much bitcoin they can get, they won't know if I have bitcoin
Where can I get bitcoin? One way is through "mining.". This method is by no means easy, and the computing power required for "mining" is now more than most people can afford (according to the design of bitcoin system, it will be increasingly difficult to find bitcoin). I know it's too simple to say that. The fact is that bitcoin's revenue and expenditure books are jointly maintained by "miners" all over the world. Most of the "mining" groups (more than 60000 users) that "miners" participate in spend a lot of time and power, and some of them can get bitcoin. For the majority of non professionals, it is much easier to buy bitcoin online on the bitcoin "exchange" with regular currency. Until recently, Japan's Mt. GOx was the world's largest bitcoin "exchange.". In China, bitcoin "exchange" BTC China has the longest history
I'm not surprised that China has quickly become a major bitcoin market because bitcoin has performed so well as a private trading channel. It is estimated that in 2013, the trading volume of bitcoin in China (including Hong Kong) accounted for more than half of the global trading volume, and more than 100000 bitcoins were traded in "bitcoin China" every day. People's interest in bitcoin has increased greatly, especially in China, which has led to a significant increase in the value of bitcoin, from about $0.08 in June 2010 to $1124.76 in November 2013. This led to reports that a Norwegian man bought 5000 bitcoins for $26.60 in 2009 and sold them for $886000 in 2013
unfortunately, those who bought at the peak have found that their bitcoin has almost halved in value - the current price of bitcoin is less than $600. What's wrong
for some investors, it is a problem that bitcoin has no physical form. For example, the Norwegian man mentioned above forgot his e-wallet password and had to take great pains to delete and rebuild it. Mt. GOx is much larger. It stopped trading on February 25, 2014, and then filed for bankruptcy protection in Japan and the United States because it lost about 550000 bitcoins, which were worth $473 million at that time, accounting for 7% of all bitcoins in circulation. Attorneys for Mt. GOx said in court that the reason for the loss of the bitcoin may be that "there is an algorithm defect in the bitcoin software, and someone has used this defect to invade the bitcoin network.". Investors usually stay away from such risks that they cannot understand
however, the bigger problem with bitcoin is that the Chinese and US governments are not friendly to bitcoin. In December 2013, the people's Bank of China banned financial institutions from engaging in bitcoin trading, saying that bitcoin is not a "real" currency. The bank made it clear that investors were free to participate in bitcoin trading, but at their own risk. Analysts pointed out that the Chinese government is worried that bitcoin trading by financial institutions will threaten the government's control over the financial instry, especially in terms of money supply and cross-border money flows. Before too many parts of the economy become "invisible" and untraceable, the Chinese government must act< Almost at the same time, U.S. Department of Homeland Security agents detained more than $5.1 million of bitcoin in Mt. GOx's account. They said the money came from a criminal network called silk road. In January 2014, a director of MT GOx was charged with money laundering. However, the U.S. government did not declare bitcoin illegal. Instead, after explaining the tax law, it used an unconventional means to punish users of bitcoin. In March 2014, for example, the Internal Revenue Service announced that bitcoin was an asset, not a currency. This has a significant impact. For example, if an American taxpayer buys $500 of bitcoin and then uses them to buy $1000 of goods e to the rising market price of bitcoin, he has to pay tax for his income. If the taxpayer purchases foreign currency, he does not need to pay tax when the foreign currency appreciates against the US dollar. In addition, bitcoin miners must declare the value of bitcoins by the date they were discovered, not by the time they were spent. In other words, bitcoin related taxes need to be paid immediately, even if the "miner" intends to keep these bitcoins for a few years. Recently, the U.S. government announced that it would transfer the bitcoin detained from "Silk Road", but asked the buyer to show his identity, which would inevitably weaken people's desire to buy and rece the transfer price of these bitcoins
since December 2013, China's official attitude towards bitcoin has not changed. However, the Chinese government does not allow domestic banks to do business with bitcoin "exchanges", especially in transferring RMB deposits from personal accounts to "bitcoin China". On April 28, 2014, bitcoin China said on its microblog that its user account had voluntarily stopped accepting RMB deposits. Since then, China has not encouraged bitcoin "exchanges" to allow users to withdraw Renminbi from their accounts. The future of bitcoin in China is not good, only Hong Kong may be an exception; At the same time, there are bitcoin ATMs in Hong Kong
but as far as the investment risk of bitcoin is concerned, the government's view may be reasonable. Recently, it has been reported that a "mining" group has controlled more than half of the bitcoin computing power, which may enable the group to veto bitcoin transactions verified by other "miners", or reuse the same batch of bitcoin without fear of being questioned. For most people, these problems can be too complex to solve. However, in mid June, Peter Chen, the main developer and advocate of bitcoin, made a breakthrough; Peter Todd, who sold half of his bitcoin, said: "I've learned that the factors that make bitcoin motivating are flawed, for a number of reasons. To say the least, even if only a few of the main reasons are taken into account, it will make people worried when a mining group controls 50% of its computing power. "
4. There's no fake defense
5. Have you made PI coins
6. There are still some impacts on land. Earthquakes will not cause land subsidence, but will cause groundwater pumping. Both of these will affect land, and floods have no direct impact
7. It's not a mining machine. It depends on where you put it. There are high gold mines. It's all stone
8. Shanlin Finance said that the fundamental reason for the suspension is that the virtual token has threatened the currency sovereignty of RMB. RMB is not freely convertible under the capital account, that is to say, after the exchange of RMB, it cannot be used for foreign investment, let alone for overseas assets purchase
9. In terms of supervision, there is basically a blank. All countries are still in the exploratory stage. It is very difficult to supervise, and it is difficult to track the flow of virtual currency, which creates opportunities for some illegal instrial chains. In addition, there are too many ICO projects at home and abroad to cheat money. Ordinary investors who do not know how to cheat are still quite likely to be cheated. Fraud projects are basically profiteering and illegal fund-raising, It is easy to cause social instability. Personal opinion.
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