Bitcoin is a digital cryptocurrency, and there is no real thing. It is a virtual currency based on blockchain technology. The decentralized nature and encryption algorithm of bitcoin ensure that bitcoin cannot be manipulated by people by making a large number of bitcoins. Therefore, Bitcoin is not controlled by any national government and is not recognized as a currency in China.

The Monetary Function of Bitcoin

1, Value: Bitcoin itself is made by a computer that consumes a lot of computing power and electricity, so part of the value of Bitcoin is also reflected in the labor value in the process of mining Bitcoin, and the other part comes from users in the market;

2. Circulation: Bitcoin has the function of serving as a medium of commodity exchange and can be used for commodity exchange;

3. Storage: Bitcoin can only be used if you have a private key, so Bitcoin has the function of storing money;

4. Payment: Bitcoin can be used for commodity payment or transaction. With more and more people recognizing Bitcoin, the use of Bitcoin is getting wider and wider, and a large number of economic activities can be paid with Bitcoin;

5. World currency: Bitcoin can be used as a universal equivalent of payment transactions in the world market. Because of its decentralization and confidentiality, Bitcoin can be used as a world currency.