1, digital currency, abbreviated as DC, is the abbreviation of English "digital currency" and is an alternative currency in the form of electronic money. Digital gold coins and cryptocurrency belong to digital currency.
2. digital currency is an unregulated digital currency, which is usually published and managed by developers and accepted and used by members of a specific virtual community. The European Banking Authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor is it linked to legal tender. However, because it is accepted by the public, it can be used as a means of payment or transferred, stored or traded electronically.
3. Definition: digital currency can be regarded as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency are mainly reflected in three aspects: ① Because of some open algorithms, there is no publisher in digital currency, so no one or organization can control its distribution; (2) Because the number of algorithm solutions is fixed and the total amount of digital currency is fixed, the possibility of inflation caused by too much virtual currency is fundamentally eliminated; ③ Because the transaction process needs the approval of all nodes in the network, the transaction process in digital currency is safe enough.
4. The emergence of Bitcoin poses a great challenge to the existing monetary system. Although it belongs to virtual currency in a broad sense, it is essentially different from the virtual currency issued by network enterprises, so it is called digital currency. Digital currency is compared with electronic currency and virtual currency in terms of issuer, scope of application, number of issues, storage form, circulation mode, credit guarantee, transaction cost and transaction security.
5. According to the relationship between digital currency and the real economy and real money, it can be divided into three categories: First, it is completely closed and has nothing to do with the real economy, and can only be used in specific virtual communities, such as World of Warcraft Gold; Second, you can buy it with real money, but you can't get real money. It can be used to buy virtual goods and services, such as Facebook credit; Third, real money and silver can be exchanged and redeemed according to a certain proportion. You can buy both virtual goods and services and physical goods and services, such as Bitcoin.
6. Transaction mode: At present, digital currency is more like an investment. Due to the lack of strong guarantee institutions to maintain its price stability, its role as a measure of value has not yet appeared, so it cannot be used as a means of payment. As an investment product, the development of digital currency cannot be separated from trading platforms, operating companies and investors.
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