In recent times, Bitcoin has become popular again, but this time it is a disaster for the entire virtual currency, because the country has officially issued a document to shut down the trading of virtual currencies. Today we will talk about Bitcoin. How did the mining accident occur? Does blockchain still have value?
In recent times, if you want to ask what investors are most depressed about, then there is no doubt that they are those who have purchased virtual currencies such as Bitcoin and Ethereum. Recently, on September 4, seven ministries and commissions including the People's Bank of China issued the "Announcement on Preventing Token Issuance and Financing Risks", which clarified that token issuance financing is essentially an illegal public financing without approval, and is suspected of illegally selling tokens. tickets, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities; it is required that from the date of the announcement, all types of token issuance and financing activities should be stopped immediately, and organizations and individuals that have completed token issuance and financing should do Arrangements such as clearance and withdrawal shall be made to properly handle risks.
Afterwards, Huobi and OKCoin announced that they would stop registration and recharge, and would gradually stop all digital asset exchange transactions for RMB before October 31. Virtual currency trading platforms such as Bitcoin China, Weibit, and Yunbi.com have also announced their imminent closure. Recently, the Shanghai Internet Financial Risk Special Rectification Leading Group Office (hereinafter referred to as the Shanghai Mutual Finance Rectification Office) learned that the current cleanup and rectification of Shanghai's token issuance financing (ICO), Bitcoin and other virtual currency trading venues has achieved preliminary results. More than 90% of the ICO projects have been basically liquidated. For a time, the hot virtual currency became a street rat that everyone shouted to beat. Today we will talk about why the country wants to take action against virtual currency?
1. What is the root cause of the Bitcoin mining disaster?
To borrow a common saying from the capital market, the problems of Bitcoin and other virtual currencies can basically be described as "black swan" events. People who invested in Bitcoin at the beginning felt a little confused. , but in fact, although this situation is unexpected, it is also reasonable. Today we will analyze why the country wants to take action against Bitcoin. The regulatory authorities’ heavy-handed attack on virtual currencies actually has deep-seated roots. As a decentralized form of monetary organization, virtual currency has become an unregulated currency due to its decentralization and anonymity characteristics. Currency form. The main problems lie in the following aspects:
First, the decentralization of virtual currencies, especially virtual currencies issued by non-states, allows the issuance and circulation of currencies to break away from the national control system, making it a An unregulated currency, such a form of currency, can easily produce systemic risks and even create a large number of bookmakers. Once virtual currency is circulated and accepted on a large scale, it is possible that bookmakers will control the currency, which will then trigger systemic finance. The possibility of a crisis is extremely detrimental to the country's financial stability.
Second, the price of virtual currencies fluctuates greatly. As a brand-new form, the price of virtual currency is difficult to evaluate and measure through conventional means, and it is easily controlled by market manipulation forces, which can easily trigger sudden rises and falls in the financial market, which is not conducive to financial stability.
Third, the virtual currency market is in chaos. In addition to the common Bitcoin and Ethereum, a large number of virtual currencies with various names are illegally issued. These virtual currencies have neither currency equivalents nor sufficient market supervision and control, and have gradually become a tool for some criminals to make money.
Fourth, virtual currency is highly anonymous. There is a lot of evidence that due to their high anonymity, some virtual currencies are becoming a means for criminals to launder money and even conduct black market transactions. Some studies even show that some virtual currencies have become important trading tools in the illegal industry chain.
Therefore, in order to better maintain the security and stability of the market, the country began to severely crack down on virtual currencies. In addition, there is another question. In the famous financial book "Currency War", the words of Meyer Rothschild, the founder of the European Rothschild family, were recorded: If I control the right to issue currency, I don't care who Make laws. This domineering remark shows the important strategic significance of the right to issue currency to a country. Therefore, the issuance of currency is a financial strategic issue that cannot be ignored for the financial stability of a country at any time, so under any circumstances a No powerful country will allow the right to issue currency to be sidelined, which is the true core of a country's financial security and stability.
2. Something happened to Bitcoin, but how are blockchains doing?
As the basic technology of Bitcoin, with the popularity of Bitcoin, blockchain has also become the focus of research by various financial institutions and technology institutions. Many people are asking, what will happen if something happens to Bitcoin now? Without blockchain, there would be no development prospects? Actually, no.
As early as 2015, blockchain research has been divorced from the existence of Bitcoin. Although Bitcoin has risks of one kind or another, blockchain as a technology is not guilty. Yes, from a technical point of view, the encryption method of blockchain is far ahead of the current various encryption methods, and it plays an irreplaceable and important role in achieving credit enhancement.
If our country wants to issue its own digital currency, then blockchain technology will definitely be an indispensable and important means. In addition to currency issuance, blockchain has a very broad application space in the fields of bill credit enhancement, credit system construction, smart contracts, securities transactions, e-commerce, file storage, identity verification, equity crowdfunding, etc. Such a broad The application prospects make the blockchain more and more independent from Bitcoin. Therefore, in the future, the blockchain that is independent of Bitcoin will have greater development prospects after getting rid of the constraints of currency.
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