Recent virtual currency downturn

1. The value of virtual currency is reflected in "more people recognize it". At the beginning of any instry, there will be savage growth. Take bitcoin as an example, the peak price of bitcoin is close to $2W, and the current price is only about $6500
in the current situation, blockchain is not a mature technology. What the market values is the so-called prospect, and it will take time to improve and excavate it slowly. However, the collapse of virtual currency is just a return to its own value
in short, I think bitcoin will continue to grow slowly after falling below a certain price. The current slump is just that the funds attracted by the previous heat have discovered the characteristics of virtual currency (hacker attack, dealer trading, these two situations will probably only appear in the newly issued currency, which is determined by the characteristics of blockchain, in other words, Hackers may also attack bitcoin in the early stage, but the more people and nodes bitcoin enters, the lower the probability of this situation, and the more difficult it is to generate)
in addition, I think that a large number of people in China even don't know what bitcoin is, so they are ready to make a fortune with money.

2. The price changes of cryptocurrencies such as bitcoin, Fuyuan coin, Laite coin and dogcoin are determined by supply and demand, and the big price changes are e to their high volatility and no price limit

the price of bitcoin is determined by supply and demand. When the demand for bitcoin increases, the price of bitcoin rises; As demand decreases, prices fall. At present, only a few bitcoins are in circulation, and new bitcoins are issued at a predictable rate of graal decline, which means that demand must follow this inflation level in order to maintain price stability. Compared with the market scale it may become, bitcoin is still a relatively small market at present. It does not need a lot of money to make the market price fluctuate up and down. Therefore, the price of bitcoin is still very unstable.

3. It can only be said that every crash is an opportunity. The most important thing is what currency you buy. The top few are not big problems. The crash will not affect the fundamentals. If you are really worried about collapse, you will not open the lever. The simplest way is to run a grid, sell high and buy low

4. In winter, don't come in, especially Shanzhai coin. 90% of the so-called good projects went crazy in June. Bitcoin, Ethereum and other real virtual currencies can be bought for speculation, which has gone crazy in the last half month.

5. It is an indisputable fact that the market of virtual currency is depressed as a whole. Virtual currency instry has entered a long-term cold winter. But there are also some indivial currencies in the recovery, the rise is fierce. For example, Ruitai coin, bitcoin and Ethereum, but there are also some currencies that continue to decline, such as Weimeng coin.

6. I suggest that you can invest some money in virtual currency. After all, the myth of bitcoin is just around the corner, and dark horses such as Ethereum and EOS have been emerging. Especially for those who like to invest, it is very necessary to get in and experience as soon as possible
but not knowing what to do is a random throw. To get good results or homework, for personal users, the personal suggestion is to pay attention to some official account numbers of some block chains or download some instries APP. There are many similar platforms. I often pay attention to the platforms including know, gold, finance, chain, club, currency world, Babbitt, etc. Read more, learn more, first establish a general concept, a little bit to find the feeling
I personally recommend the platforms of "Zhihu", "Golden Finance" and "whole chain society". The questions you want to ask are generally well explained in Zhihu“ "Golden Finance" is a news and information platform, which collects a lot of instry information. The content of the "full chain society" official account is helpful to systematic learning, and the knowledge of the block chain is very small, and it can be organized in a systematic way.

7.

It is difficult to avoid the typical risks related to the payment system. In a specific virtual community, virtual currency payment activities have evolved into a "real" payment system, facing the typical risks related to the payment system: credit risk, liquidity risk, operational risk and legal risk. The nature, scale and ration of these risks largely depend on the design of the system or the degree of lack of liquidity. It is difficult for the network virtual currency scheme to avoid or control these risks. According to the core principles of important payment system (CP) issued by the bank for International Settlements (BIS), the network virtual currency scheme does not conform to most of the contents of CP, and does not belong to the systemically important payment system. Therefore, it will not cause or transmit shocks to the global financial system. At present, there is no systematic risk in the network currency system outside these virtual communities

2. Lack of corresponding supervision and protection mechanism

in the real economy, the central bank plays the role of lender of last resort and there is no default risk, so it can take actions in the case of payment crisis or unpredictable liquidity shortage to avoid chain reaction. In the network virtual currency scheme, network currency is not the settlement asset. Because network currency simply depends on the credibility of the issuer, it can not be widely accepted as a means of payment, so network currency can not be regarded as a safe currency. In addition, commercial banks are required to accept prudential supervision, which reces the possibility of default. The security of money in commercial bank accounts is higher than that of network currency. A fundamental risk of network currency is that the settlement institution of network currency scheme is not subject to any supervision, no institution is responsible for its behavior, and there is no investor / depositor protection mechanism, which causes the user to bear all the risks

(4) risk of absence of supervision generally speaking, supervision lags behind the development of science and technology. The network virtual currency program was established in the late 1990s, but it was not until 2006 that some government agencies in the United States began to analyze these programs. Due to the lack of supervision and the anonymity, invisibility and difficulty in tracking of its transactions, the network virtual currency scheme is easily used by terrorist activities, fraud, money laundering and other illegal activities. At present, many government departments in many countries are considering whether to recognize or legalize these virtual schemes and bring them into the scope of supervision, so as to support the innovation of currency and payment forms, protect consumers' rights and interests and financial stability, and restrain the use of virtual currency schemes to engage in criminal activities. At present, the uncertainty of the legal status of the virtual currency scheme may also bring challenges to the government authorities

The reputation of Monetary Authority (central bank) is the key factor to determine the effectiveness of its policies, especially monetary policy. The public's trust in fiat money is closely related to the image of the central bank, which pays close attention to its reputation. The ECB will define reputation risk as the risk of deterioration of reputation, credit or public image. As the network currency scheme is related to money and payment, it is generally believed that it belongs to the responsibility of the central bank, so it is necessary to guard against the reputation risk it may bring to the central bank. Although in the case of small scale, the impact of the failure of the network currency scheme is limited, its high volatility and instability also increase the possibility of failure and attract extensive media coverage. If the network currency is allowed to develop continuously without regulation, the central bank may be regarded as dereliction of ty and affect its reputation

Compared with the exchange value, the public has a higher recognition of the investment value of network virtual currency, and it is the transaction based on investment that accelerates the formation of virtual currency market. Like other investment markets, the participants of virtual money market will also face the potential losses caused by market risk, credit risk and policy risk. Take the bitcoin as an example: from 2009 to the beginning of 2010, bitcoin was worthless; In the summer of 2010, bitcoin trading began to enter the golden age. Because the supply was far less than the demand, the value of online trading began to rise. In early November, bitcoin was silent at 29 cents for many days, and then jumped to 36 cents; In February 2011, the bitcoin continued to appreciate, and its exchange rate with the US dollar reached 1:1; In 2013, the bitcoin price achieved a "Big Bang" growth, and hit US $1242 on November 29, 2013, exceeding the gold price of US $1241.98/oz in the same period. Fierce price fluctuations make market participants face huge speculative risks

unlike mature capital markets such as stocks and bonds, bitcoin market is not deep enough, and it is mainly held in the hands of large investors with low degree of diversification. Bitcoin price is easily affected by large investors' trading behavior and controlled by speculators. At the same time, different countries have different attitudes towards bitcoin. Germany, the United States and other countries hold an open and supportive attitude. Thailand, Brazil and other countries regard bitcoin related activities as illegal. Every country's attitude and measures will have a significant impact on its price, especially in the short term