Bitcoin: a new financial system engine

Bitcoin: a new financial system engine

Bitcoin disappeared in China mainstream public opinion has been for some time, but in foreign countries, bitcoin treatment is not very bad, the recent price has been maintained at around $600. In June 24th, Switzerland granted a legitimate bitcoin currency, in July 3rd, the Russian central bank issued a statement, suggestions on the topic of virtual currency to tone.

In the past year, bitcoin market as a roller coaster, change radically. While the internal crisis has repeatedly stolen, bitcoin trading platform Mt.Gox factor one hundred thousand bitcoin stolen and declared bankruptcy. Because of the suspicion of money laundering is the Central Bank of hostility and even ban. Back to the mainstream public opinion in the network, the position is this — all in one story is a new type of financial deception, bluff to be fooled, worthless. While the central bank is China repeated injunction, prohibiting bitcoin transactions, prohibit the third party payment guarantee for bitcoin.

In fact, this is just talk about financial fraud, not enough to allow the central bank to deny it, great harm than it is. The central bank to comment, and issued the ban, that the Central Bank of the people attach great importance to. However, this is from the negative side reflects the existence value of bitcoin.

I think that the virtual currency outlook is very bright. It may bring revolutionary changes to the financial system. Then as the representative of bitcoin virtual currency, what demand? Why do you need social virtual currency?

The United States recently punished the Bank of Paris, out of the huge fines of $9 billion a year, and to prohibit the dollar trading charges is to participate in Iran trading with the enemy, in violation of U.S. sanctions. Political meddling in the plug into the financial sector, foreign economic trading interference. In another development, the United States is also using its financial advantage of international institutions such as the VISA interrupt payment payment in cooperation with the Bank of Russia, the Russian political and financial kidnapping as a bargaining chip. Iran has long been selling oil sanctions, but not the repayment. So since the dollar hegemony prevailed all over the world were under the despotic power hegemony. The world needs the financial system is able to get rid of the system to the distributed center of the powerful control of the country, not a monetary hegemony, which can realize the free flow of capital.

Bitcoin just can do this, anonymous trading system, as the world currency convertibility and access to power. To carry out international trade through it, financial control can avoid the hegemony of the. 实现金融的自由全球化。 Last week, the Central Bank of Russia’s softening attitude, roughly shows that the risk of Russia’s dilemma: only know this anonymous money laundering, but it can hedge to ban Russian bank payment business risk. It is possible to replace the dollar hegemony, as long as the network, it can transmit. One of the most distinctive bitcoin, it must by mining to acquire, as with a limited supply of gold and silver coins, four years halved. Is worthy of the name “currency deflation”. Although there is no national credit, but its inner design is limited.

Second, bitcoin is gray income good money laundering channels, drug trafficking, casino transactions, arms trade also through the universal channel to achieve anonymity. For drug trafficking, arms trade has been the world trade in the first few categories, amazing trading volume. Bitcoin is not the central bank lifted the state regulators worried, worried about drugs, gambling, money laundering and so on all this transaction, the financing channel is difficult to block etc.. Bitcoin transactions, the first is to meet the demand of anonymous can realize the free flow of currencies in this part of the grey and black chain.

As the representative of bitcoin virtual currency system if the rise is not only against the dollar hegemony, but also destroy the world governments on their own currency printed right. Any monetary authorities are unlikely to give up this lucrative printing privilege. The traditional finance is a terrible thing, it is the destruction of all the development of the financial sector since the second world war is driven by inflation.

In short, as the representative of bitcoin virtual currency is the Internet Financial truly disruptive force.

The main financial sources told iDoNews that bitcoin is a hoax – in addition to its power beyond worthless, and unlike gold can be used as a decoration.

Isn’t this a virtual currency coin game? Of course, it can be said that the mint is not a value? On the basis of demand even if there is value attitude, a bitcoin mining software power mining, pay the cost is to buy the software, can understand it. Why not bitcoin bitcoin is made as the needs of the game? Certainly. Gold has the ornamental value of bitcoin, also can have entertainment value. Although this is a.

In addition, once someone will bitcoin and other virtual currencies actually to exchange goods, so they have their own value, because it has gained recognition. As a software development, there are people, there is a value. In fact, the potential demand for bitcoin and other virtual currency trading items is very large.

Then its value should be how much? At least the supply and demand balance. It is the production need to pay a considerable price. Bitcoin can be regarded as a “general equivalent”, rather than the credit currency. It does not need any national institution to credit, its production includes the “labor value” on the inside. The production cost is the basis of the nature of credit. Electricity consumption, consumption, depreciation server software development and maintenance of hand shall constitute the value of labor. It is with the network information flow of high-speed transmission network of gold.

However, I’m not saying bitcoin this thing really can completely replace the traditional financial. It also has the disadvantages of very significant. First, only the network application, otherwise can’t do anything. Second, it is the currency deflation, people will be more likely to store, rather than circulation. Design of bitcoin production four years half of it, it will permanently rise, the gold is not to be used for shopping, but the inventory in the vault. Gold dug out, and buried back. A currency reserve finally means bitcoin may face the fate. The third part, mining group may have achieved a monopoly, price manipulation.

As the representative of bitcoin virtual currency that is subversive Internet financial attempt. The debate is far from the end, I’m afraid we can’t see it fall to the moment. It did not die, there is hope. People who deny it how mainstream financial, this is not important, it is the creator of Nakamoto So is a very low-key person, he only uses his creation silently provides the basic framework of bitcoin, and will argue to someone else. The future of Finance may belong to the virtual currency, bitcoin is only a beginning, open free currency trend, now follow the bitcoin currency has been widespread copycat. They are highly active in innovation activities, is the future of the new financial source to the center.

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