Second understand encyclopedia's virtual currency

1、 Different definitions:

1. virtual currency:

virtual currency refers to non real currency

digital currency is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy

3. Cryptocurrency:

cryptocurrency is a kind of transaction medium that uses cryptography principles to ensure transaction security and control the creation of transaction units

4. Token (token):

a kind of article whose shape and size are similar to currency, but the scope of use is limited and has no currency effect, and its token is the homonym of token in English

1; It can also be said that virtual currency is personalized currency. In another way, it can also be called information currency

2. Digital currency:

is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities

cryptocurrency is based on the decentralized consensus mechanism, which is opposite to the banking and financial system relying on the centralized regulatory system

4. Token (token):

usually needs to be exchanged for money, used in shops, playgrounds, mass transportation and other places, as a voucher to use services and exchange goods

extended data

at present, digital currency is more like an investment proct, because it lacks a strong guarantee agency to maintain its price stability, and its role as a value measure has not yet appeared, so it can not be used as a means of payment. As an investment proct, digital currency cannot develop without trading platform, operating company and investment company

digital currency is a double-edged sword. On the one hand, the blockchain technology it relies on has been decentralized and can be used in other fields except digital currency, which is one of the reasons why bitcoin is popular; On the other hand, if digital currency is widely used by the public as a kind of currency, it will have a huge impact on the effectiveness of monetary policy, financial infrastructure, financial market and financial stability

Virtual currency is not MLM

virtual currency refers to non real currency. Well known virtual currencies, such as online currency of Internet company, QQ currency of Tencent company, q-point, voucher of Shanda company, micro currency launched by Sina, chivalrous Yuanbao, silver pattern. Digital currencies include bitcoin, Wright coin, infinite coin, quark coin, zeta coin, barbecue coin, penny coin, invisible gold bar, red coin and prime currency. At present, hundreds of digital currencies are issued all over the world

network virtual currency can be roughly divided into

the first category is the 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 using these to buy Herbs and equipment, but it can only be used in his own game console. At that time, there was no "market" between players. Since the establishment of Internet portal and community, the realization of game networking, virtual currency has a "financial market", 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 and Wright currency. Bitcoin is an electronic currency proced by open-source P2P software. Some people also translate bitcoin as "bitcoin", which is a kind of network virtual currency. It is mainly used for Internet financial investment, and can also be directly used in daily life as a new 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

Virtual currency ICO (abbreviated as initial coin offering) is a kind of blockchain, which is a common way to raise funds for cryptocurrency / blockchain projects. This kind of blockchain is a kind of data structure with relatively complex arrangement, and it is a kind of distributed ledger that can not be forged

virtual currency is different from check and telegraphic transfer. The value that virtual currency can't realize can't be transferred by bank. At present, it can only circulate in the network world. Virtual currency is released by various network organizations, and there is no unified issuance and management standard

extended materials:

virtual currency refers to a kind of virtual money on the Internet. That is to say, the information flow or data flow that replaces the circulation of real money in high technology. Today, with the rapid development of information technology, real money is far from meeting people's demand for capital flow

blockchain is a new application mode of distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm and other computer technologies. The so-called consensus mechanism is a mathematical algorithm to establish trust and obtain interests between different nodes in the blockchain system

blockchain is an important concept of bitcoin, which is essentially a disintermediated database, as well as the underlying technology of bitcoin. Blockchain is a series of data blocks generated by cryptography. Each data block contains the information of a bitcoin network transaction, which is used to verify the validity of the information (anti-counterfeiting) and generate the next block

reference materials: Network: virtual currency

Network: ICO

Network: blockchain

Virtual currency wallets and local wallets are wallets specially used to store virtual currency

difference: local wallets are installed on their own computers or mobile phones, while online wallets encrypt the private key and put it on the server

personal computers may be implanted with Trojans; The wallet server also has the risk of being attacked by hackers, and the encrypted private key is cracked. Server security is better than personal computers, but it is easier to attract hackers' attention

virtual currency Wallet:

there are three main types: Online wallet, client wallet (mobile client, computer client) and hard wallet

1. Online Wallet: it refers to the operation of virtual currency relative to wallet by users in the form of network; The main form is website, which users can visit through computer and mobile phone

2. Client Wallet: it is an installation software, which needs to be downloaded to the computer or mobile phone, and can only be used after installation; This is the type of mobile app wallet that I just mentioned

3. Hard Wallet: it is similar to the wallet in the form of U disk, which is a real type of wallet

local Wallet:

the English name of local wallet is local wallet. Local wallet is to store private key and transaction data in local terminal, such as computer, mobile phone or other local devices; It refers to the storage location of the key, and its concept is independent of online wallet and offline wallet

the English name of local wallet is local wallet. It is one of the terms related to bitcoin wallet in blockchain. Local wallet is to store private key and transaction data in local terminal, such as computer, mobile phone or other local devices; Local wallet refers to the storage location of key, which is independent of online wallet and offline wallet

the local wallet is installed on your own computer or mobile phone, while the online wallet is encrypted and put on the server. Personal computers may be implanted with Trojans. Hackers may steal your wallet files and record your wallet password; The wallet server may also be attacked by hackers, and the encrypted private key may be cracked. Server security protection is better than personal computers, but it is also easier to attract hackers' attention. In terms of security, I think these two types of wallets are similar

to enhance the security of local wallet and online wallet, it's better to set a more complex password, and don't forget it. Both local wallet and online wallet are easy to use and easy to use. Because online wallet is not limited by clients, it is easier to use than local wallet. Bitcoin core, Bitai wallet and bitpai wallet all belong to this category

local Wallet_ Network

China does not have the first legal virtual currency. At the end of 2013, the central bank and other five ministries and commissions issued the bitcoin risk notice, which clearly defined bitcoin as a special Internet commodity, and the public can buy and sell it freely on the premise of taking their own risks

other digital confidential currencies are also suitable, such as Laite coin, the ancestor of Shanzhai coin, Fuyuan coin for business points in jewelry instry, dog coin for small reward, etc. But although virtual currency exists legally in our country, it is illegal to cheat under the guise of virtual currency

extended data

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 transactions of online virtual currency have 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. Take 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

network problems

in addition to direct cash, virtual currency can also be purchased by SMS, internet transfer and fixed telephone recharge. These ways of purchase not only provide convenience for users, but also have many risks

such as embezzlement of telephone recharge and purchase by minors. In addition, virtual currency does not have the anti-counterfeiting technology of real currency. Computer hackers may use its security loopholes to proce counterfeit currency. Relevant personnel of the State Administration for Instry and Commerce said that virtual currency transaction is a business behavior derived from the Internet era, and there are no clear legal provisions to regulate it, and there are no items related to virtual goods transaction in the scope of instrial and commercial registration

but when the virtual property transaction graally employs people, places are fixed, transaction profits are clear, and has the nature of operation, it may involve market order and tax issues. Even game operators have no ability to control. There are a large number of "counterfeit banknote makers" in the network. Take the winger who is mainly engaged in chess and card online games as an example, the purchasing power of his online currency has shrunk by nearly 40% in one year. Many people point out that such inflation will only damage netizens and make them lose confidence in the Internet

reference source : network virtual currency

No. Virtual currency with good operation and investment will survive for a long time and will not go bankrupt in a few months, such as bitcoin and internet currency of Internet companies