Digital cryptocurrency

1.

Encrypted digital assets: encrypted digital currency is not issued by legal tender institutions and is not controlled by the central bank. It is based on the open source code of a group of equations calculated by computers all over the world. It is generated by a large number of operations of computer graphics card and CPU, and uses the design of cryptography to ensure the security of all aspects of currency circulation. The design based on cryptography can make the cryptocurrency only be owned by real users

encrypted digital asset is also a kind of gold existing in the network world, which is a kind of encrypted digital currency based on the block chain technology and using the digital encryption principle. In a sense, it has the same circulation function as ordinary currency. Encrypted digital assets apply blockchain technology to the global financial field, which makes consumers all over the world make business investment through encrypted digital assets, and create a new business model of win-win between investors and users, which is a trend for development

virtual currency:

virtual currency (enterprise currency) is self issued by companies or private indivials. It can be issued indefinitely, and it does not need to be obtained by solving the equation through the CPU program of computer graphics card. Because it can be issued unlimited according to the market demand, it does not have the value of collection and appreciation. There is no ore pool website, no original code. Price can be manipulated, mostly one-way relationship

2.

1、 Different definitions:

1. Virtual currency:

virtual currency refers to non real currency

Digital 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

Second, the characteristics are different:

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:

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

3.

Differences:

non encrypted currency (enterprise currency):

1, personal behavior

2, company's own currency

3, unable to decentralize

4, unable to trade on international trading platform

5, unlimited issuance

6, no mine website, no original code

7, controllable price, mostly one-way relationship (dining ticket of an enterprise, Qmoney and so on)

open source digital cryptocurrency:

1. Decentralization -- not regulated by indivials, companies and national banks

2. Limited issue

3. Free trade on international trading platform

4. Original code

5. Not taxed, not frozen, uncontrollable price

cryptocurrency advantages:

1. Compared with paper money, Save the cost of printing, data audit, anti-counterfeiting, escort circulation, safe keeping and so on

2. It is impossible to control the number of issues without issuing institutions

3. Borderless. If you use cryptocurrency transaction, directly enter the account address, click the mouse, wait for the network to confirm the transaction, a lot of money will pass

4. Using cryptocurrency in any store can save the cost of tax and capital supervision

5. It is not controlled by the central bank and the quantity is limited, so it can completely resist the pressure of inflation. Let the wealth of the common people keep its value and increase its value The cryptocurrency other than bitcoin is also known as counterfeit currency and competitive currency (English: altcoin). Part of it is a virtual currency similar to bitcoin, which is based on the ideas, principles and source code of bitcoin. At present, more than 800 cryptocurrencies are in circulation

because bitcoin itself does not have an authoritative issuing institution and state power to maintain its authority and uniqueness, bitcoin and its imitators can only get along equally. It is not absolutely exclusive

4.

1. Digital money supply:

for example, the supply of bitcoin may be limited (21 million), which is expected to be fully exploited by 2040, but even so, the availability of money will fluctuate with the speed of its entry into the market and the activities of its holders

2, the value of the digital currency: the value of the

digital money market and the expectation of its currency will affect the behavior of traders, choose to participate in a blowout market or short bubbles. p>

3. Negative reports:

any currency will be affected by the public perception, especially digital currency. Even in its heyday, its security, currency value and currency circulation have been questioned

4. Resource integration:

establishing the image of digital currency and building the confidence to defeat traditional currency depend on its integration with new payment system and crowdfunding platform

5. Instry acceptance:

bitcoin and other digital currencies have not been widely accepted by global enterprises, and the impact of placing it in a more important position in enterprises is unknown

6. Key events:

any major event, including regulatory changes, security loopholes, macroeconomic setbacks, may have a serious impact on cryptocurrency

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monetary characteristics:

as a non fully circulating asset, the strong price of digital cryptocurrency must be supported by reserves; The price fluctuation depends on the real-time transaction demand of bitcoin to legal currency

the biggest feature of digital cryptocurrency is that it is global. No matter where you are, of course, the human beings in the Mars bunker outside the earth have no problem. As long as you can log on to the network, you can freely control your own assets within the scope of the global network, which is safe and convenient. The assets in an address can be controlled independently or jointly (multi signature smart contract)

5.

Digital cryptocurrency is a kind of currency that is not issued by legal tender institutions and controlled by the central bank. It is based on the open source code of a group of equations calculated by computers all over the world, and is generated by a large number of calculation processing of computer graphics card and CPU. It uses the design of cryptography to ensure the security of all aspects of currency circulation

development materials:

1. definition of digital currency:

   digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English and the alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy< br />

   

6. Generally speaking, virtual currency is equal to encrypted digital currency
in fact, virtual currency covers a wider range, including not only q-coin, y-coin and various game coins, but also bitcoin, Leyte coin, doggy coin, ether coin, Ruitai coin and tokens of different crowdfunding projects launched by European crowdfunding platform
cryptocurrency specifically refers to bitcoin, Leyte coin, dogcoin, ether coin, Ruitai coin and the tokens of different crowdfunding projects launched by European crowdfunding platform.

7. In the community, the general high-end is called cryptocurrency and digital currency, which is also a relatively academic name
virtual currencies are generally at the bottom, and many of them are pyramid schemes or funds
in fact, cryptocurrency, virtual currency and digital currency are the same, but they are called differently
at present, the mainstream digital currencies in the market include bitcoin, bitcoin cash, wikilink and so on.

8. Cryptocurrency is not issued by legal tender institutions and is not controlled by the central bank.

9.

bitcoin (BTC)

issue date: 2009

market value: US $163 billion

advantage: as the first cryptocurrency issued, bitcoin is the world's largest and most popular blockchain network and the most experienced cryptocurrency that can resist hacker attacks

disadvantage: the increasing demand brings great pressure to bitcoin network, which makes the transaction cost high. The system can only process about seven transactions per second, but its power consumption is amazing. This is mainly e to its workload proof mechanism and consensus principle, which makes mining become a labor-intensive activity

eth

release date: 2015

market value: US $70 billion

advantage: its built-in programming language allows developers to write their own smart contract computer programs running on the blockchain. So far, most of the first token sales are based on Ethereum's smart contracts

Disadvantages: Ethereum also uses the consistency protocol of workload proof, so it is relatively slow and consumes a lot of power. Many early smart contracts are vulnerable to hacker attacks, and the development of smart contract security is still immature

XRP

issue time: 2012

market value: US $32 billion

advantage: XRP claims that its XRP cryptocurrency can become the "bridge currency" of major financial institutions, and can settle cross-border payments more quickly and at lower cost. Ruibo uses a new consistency protocol, which can achieve faster transactions, faster than t-coin and Ethereum

disadvantages: as a private company, Ruibo has important control over the system, some people think that XRP is not decentralized enough, which is in contrast to bitcoin, which anyone can mine

bitcoin cash (BCH)

issue time: 2017

market value: US $19 billion

advantage: this kind of currency is a "hard fork" of bitcoin, and its founder has adjusted compared with bitcoin, so that it can handle a larger transaction volume

disadvantage: critics say bitcoin cash is too centralized - a few miners create most of the money

lightcoin (LTC)

time of issue: 2011

market value: US $10 billion

advantage: lightcoin is a kind of "alternative currency" - almost a clone of bitcoin, but there are still several differences. Lightcoin processes transactions four times faster than bitcoin, and the mining process remains open to amateurs - very different from bitcoin, because bitcoin's professional miners use expensive hardware

disadvantages: although it is faster than bitcoin, lightcoin is still too slow and consumes a lot of power. These factors make it unable to become an ideal payment method, and there is another disadvantage: it is not very famous

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