Why is the virtual currency bubble?

1.

There are two reasons for the prohibition of virtual currency trading by the state:

1. The price fluctuates violently and the consumer protection is lacking:

virtual currency is the proct of network, and the digital information flowing in the network is beyond everyone's control. The code of cyberspace is the basis of the operation of virtual currency, investors can only operate through the front-end interface, seemingly "control" the virtual currency. The operator of the virtual currency service organization may become the actual controller of the virtual currency through the control code

bitcoin and other so-called "virtual currencies" lack a clear value basis, the market is full of speculative atmosphere, the price fluctuates violently, and investors blindly follow suit, which is easy to cause capital losses

2. Evade supervision and become the "accomplice" of criminal activities:

bitcoin is popular as a payment tool in the so-called "dark web" world“ The "dark net" is full of all kinds of serious criminal activities. One of the original intentions of the invention of bitcoin is to evade regulation. It has the characteristics of anonymity and convenient cross-border flow, and has become the preferred tool of "underground economy"

the existence of bitcoin and exchanges and other instrial chains has constructed a illegal financial market for asset transfer and financing in addition to legal currency, increased the difficulty of regulatory authorities in managing financial security and stability, and promoted regulatory arbitrage and financial crimes. The risks and social security risks it brings to the financial market are far higher than its innovative value

extended information

virtual currency transactions are not protected by law:

according to the notice on preventing bitcoin risks issued by the people's Bank of China and other departments on December 3, 2013 and the announcement on preventing financing risks of token issuance issued by seven ministries and commissions including the people's Bank of China on September 4, 2017, virtual currency is not issued by monetary authorities, It is not a real currency because it does not have the monetary attributes of legal compensation and compulsion

in terms of nature, virtual currency should be a specific virtual commodity, which does not have the same legal status as currency, and can not and should not be used as currency in the market. Although citizens' investment and trading in other virtual currencies are personal freedom, they can not be protected by law

2. Now there are not many independent discs. The platform is trying to eliminate bubbles. Emerge in an endless stream of uneven in quality cat coins and Br in recent years, so we have to consider how to eliminate bubbles and how to achieve closed-loop platform. The following are common modes:
1 virtual currency trading platform + binary options
2 virtual currency trading platform + mall + crowdfunding
3 virtual currency + mutual aid + mall
4 split disk + entity
5 mutual aid disk + entity mall + Binary Options
6 trading platform + P2P lending

3. This devil knows, but now is not broken, in fact, everything has a bubble, in fact, you should not be concerned about how long the bubble can hold, but should pay attention to whether you can seize the opportunity.

4. Take a look at the game control
there should be key settings over there
but one of the chain mining presets I know seems to press v

5. Different people have different opinions on this issue
we can say that real estate is a typical bubble. Many experts will argue that there is no bubble.
we can say that RMB is a typical bubble, and it has too many issues. Experts are noisy, not much
What about bitcoin? Or you can have a fight. It's a bubble or a bubble.
bubble is not a thing itself, after all, the world's major powers, especially China, issue too many banknotes, so that paper money is constantly circulating in the market, and constantly promote all kinds of "price" to measure all the ups and down. Including land, including garlic, including basic living expenses, and so on
remember that bubbles are procts of massive currency issuance, not just one thing.

6. It depends on whether there is gold or government endorsement. Virtual currency is issued by a company, which is pure speculation.

7. I also hold bitcoin, but generally speaking, it is not very pessimistic. However, it can be expected that it will eventually have a peak. As for where this point is, it can be said that it has not been revealed in the past two years
actually, I am not clear about the technological development of bitcoin, but its financial logic can still be followed by rules, that is, the history of modern paper money
judging from the development history of modern paper money, it first originated from European financial banks or bank notes of early banks. Its issuance is based on the savings of users, and the holder can cash it at any time with the bank notes (exchange the bank notes for gold, silver and other precious metal currencies). However, only the banks can really grasp the information of the real reserve amount. Therefore, under the condition of asymmetric information, banks often issue bank notes in excess of the reserve amount for external borrowing and investment under the condition of good capital turnover, and recover the principal and interest when the debt matures, which can be described as a typical "white wolf with empty hands". In this process, the maintenance of banknotes depends on two aspects: one is the material basis of bank reserves, and the other is the public trust in the bank. The relationship between the two is complementary: imagine that a bank with poor credit can not attract deposits. The bank with good credit can attract deposits, and the more deposits it can attract, the more reserves it will have, The more banknotes that can be issued, the greater their financial influence, and in turn, the better their credit. However, with the deepening of social and economic control of bank vouchers, the degree and risk of bank bond bubble based on credit are increasing. Therefore, the risks to the macro economy and society are increasing day by day, and the potential risks posed by the political power authorities are also improving. As the first central bank in history, the Bank of England was born, and its significance is also in this. Legal money (current paper money) can be issued and circulated through the central bank. Of course, as in the era of banknotes, on the one hand, the issue of legal money is based on the reserve of the central bank, but it is also frequent that the issue of legal money exceeds the reserve in order to achieve a certain purpose of the government (such as stimulating social and economic development, making up the government deficit, etc.). Therefore, in the long run, inflation is an inevitable economic trend in a stable and developing normal society. It should be noted that with the development of the legal currency system, the state has stopped cashing legal banknotes in the form of legislation, and precious metals such as gold and silver have changed from the original functions of both currency (gold and silver currency) and commodity (gold and silver crafts) to the function of commodity for investment and value preservation in modern society, The legal paper money issued by the central bank has become a value symbol based on the authority's credit
therefore, we will examine the financial logic of digital currency led by bitcoin
the issue of bitcoin does not depend on a specific organization, but on the mining behavior of miners, that is to say, its issue is not controlled by an indivial organization, which determines the public attribute of the issue of bitcoin. Similarly, because of its public nature, no institution or indivial can provide reserve for its issuance. From this point of view, bitcoin is a symbol without value basis. However, e to a wide range of social participation, the public's trust in the special currency has formed the value base of its symbols. When the social participation is higher, the wider the scope of participation, the stronger the foundation, and even become a value symbol beyond a country or a region or even the whole world. Its complete credit attribute determines its complete bubble attribute. From this point of view, the risk is far greater than that of banknotes hundreds of years ago. There are two sources of credit in the inspection period. One is the public participation in investment, that is, the so-called "speculation", which shows great instability; The other is the strong belief of technology circles and some people in the currency circle in the technology behind digital currency, and this part of credit is relatively stable. From the current situation, the former constitutes the main body of the current bitcoin credit. Therefore, with the changes of government policies and investment market activities, the price of bitcoin presents great volatility. It is right to define it as investment goods rather than money
but is this bubble necessarily broken? This is not the case. As the former said, its credit base comes from two aspects, and at present, the first aspect is the main body. In the short term, the constant hype on the topic of bitcoin and the popularity of the blockchain technology behind it will further stimulate the public's participation and belief in technology, thus stimulating the improvement of bitcoin's credibility and strengthening its credit foundation. However, as time goes on, the price of bitcoin will continue to expand, and the entry threshold will also increase, which will largely limit the public participation of bitcoin. Finally, the participation of bitcoin will be limited to a small scope. That is to say, the trend of its development itself will damage its first aspect of credit base, Therefore, it is very likely that the price of bitcoin will reach the peak at a certain price in the future, forming a very high investment threshold. The price will hover at a certain high level, and its profit margin as a means of investment will be reced. Of course, if we consider the inflation of the French currency, we can think that the price of bitcoin will continue to rise slowly after a certain high. However, in the first place, credit expansion will also affect the development of credit technology in second aspects, which will probably lead to changes in its credit composition, and its price will graally stabilize, and its bubble attribute will also graally decrease, but it will not disappear absolutely, nor is it bubble burst. It always maintains the function of investment procts.
however, as in the history of banknotes, bitcoin's deepening influence on social economy will inevitably attract the attention of the authorities, thus forcing the authorities to take measures for control. The general direction of these measures depends on the degree of development of the concept and technology of digital currency, that is, the higher the degree of acceptance of the concept and technology, the more likely the authorities are to take compliance measures, so as to promote competition between legal digital currency and current digital currency through various means (economic means, financial means and legislative means), This is just like the competition between banknotes and banknotes hundreds of years ago. It can be predicted that if the value form of digital currency is recognized by the authorities and put into practice, it is likely to stimulate the overall rise of the price of digital currency in the short term to a certain extent; The implementation of legal digital currency (some people call it digital legal currency) is endorsed by the authorities, which will attract more funds and credit into the field of digital legal currency. As a result of these changes, the credit pattern of digital currency has changed and the inevitable digital legal currency has entered the circulation field, it is very likely that in addition to a few digital currencies with strong and firm credit will be transformed into "the role of precious metals in the era of digital currency", other digital currencies, especially the so-called digital currencies of ICO nature, Like the mixed banknotes issued by various banks hundreds of years ago, it is very likely that they will basically withdraw from the market and eventually form a digital currency pattern of "digital legal currency digital precious metal currency". This process will finally complete another transformation of monetary development in human history.

8.

in terms of price, bitcoin and various "cat coins" (all the encryption currencies outside the bitcoin system) are in the bubble. But in terms of value, bitcoin is not. Davis said that although bitcoin is a speculative transaction, it is still valuable

Davis said that if you bet on bitcoin, you bet on the value exchange provided by the Internet. The Internet exchanges information through various protocols, just as people use bitcoin to buy a commodity or exchange for the service they want. Therefore, if the number of people using bitcoin is increasing, the value of the Internet will continue to grow

the price of bitcoin continued to rise this week. According to data from coindesk, the trading price of bitcoin broke through 12000 US dollars for the first time on Wednesday (December 6) morning Beijing time. Because of the large increase in bitcoin, executives of some large banks call bitcoin "bubble". Bitcoin has risen more than 1000% since the beginning of the year

Davis' company currently allows people to pay in the form of "electronic gold" instead of bitcoin. Users can link their MasterCard debit card to glint's app, and then do what they want: buy the goods and services they need, even transfer money. Bitcoin is an exchange of value provided by the Internet, but it cannot be used as a means of payment like gold, the executive said< br />

9.

Shenzhen Jubao Internet Technology Co., Ltd. is a limited liability company registered in Longhua District, Shenzhen City, Guangdong Province on May 28, 2013. Its registered address is located at b805, Yousong science and technology building, east ring 1st Road, Longhua street, Longhua New District, Shenzhen city

the unified social credit code / registration number of Shenzhen Jubao Internet Technology Co., Ltd. is 914403000703807588, which is Xie Wei, the legal person of the enterprise. At present, the enterprise is in business

the business scope of Shenzhen Jubao Internet Technology Co., Ltd. is: general business items: E-commerce; Development of network technology (excluding Internet service); Research and development of computer software; Web design; Sales and on-site maintenance of computer system integration equipment; Sales and leasing of servers; Domestic trade, import and export of goods and technology., The licensed business items are: using the Internet to operate game procts (including online game virtual currency issuance); Internet information service. In Guangdong Province, the total registered capital of companies with similar business scope is 4084445 million yuan, and the main capital is concentrated in 12434 enterprises with scale of 1-10 million and over 50 million

Shenzhen Jubao Internet Technology Co., Ltd. has invested 0 companies and 1 branch

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