[People’s daily] virtual currency investment “startling step by step”
Since the birth of bitcoin virtual currency, presents a similar situation for. According to incomplete statistics, as of May 2014, the global virtual currency exceeded 500. Most of these currencies from the design of bitcoin, only in terms of algorithm and parameters to do some modifications, insiders often nicknamed it “copycat coins”. The emergence of these copycat currency, virtual currency that has appeared in the field of economist Hayek said “currency competition” phenomenon: the currency competition between different subjects in the aspects of design, marketing, technology, maintenance, the author called virtual currency competition.
The competition of virtual currencies such as bamboo shoots after a spring rain the reason generally emerged, partly because the encryption algorithm, which is bitcoin security, distributed self-organizing (DAC), go to the center of the important thoughts of other people with great inspiration, as if in addition to the traditional financial field, the Internet developed a new gold, many people began to Denver tour bitcoin design competition of the virtual currency. On the other hand, bitcoin prices soared last year, making some people believe that the development of competitive virtual currency to obtain huge profits, and investors in addition to the high prices of bitcoin, with low investment options.
However, the virtual currency bitcoin is more likely than the price spike, the investment risk is greater. As of 2013, the beginning of the year rose to a high point of the year, bitcoin prices rose more than 70 times, Wright currency (LTC) rose more than 1500 times, little money (PPC) rose more than 3500 times. From the beginning of 2014 to the end of May, bitcoin prices fell by 11%, a lot of virtual currency decline is close to 90%.
In fact, in the back of the low and high price, competitive virtual currency price trend is still traceable. In the long term, investment value and price competition of virtual currency by three basic factors: the existence of valuable innovation; whether in the application and promotion of real life; whether the formation of ecological community stability.
Some of the highest in the top market or competitive virtual currency is very popular all satisfy these conditions. For example, little money in mining way to do a major innovation, proved from bitcoin workload (POW) models to proof of interest (POS) mode, in saving energy does not affect the safety of the premise of the monetary system; Diablo currency (DRK) has made progress in the process of protecting user privacy. The founding team attaches great importance to the marketing of dog coins, such as racing team, launched the sponsorship of the UK McDonald’s dog coins Hamburg vote a series of promotional activities, to quickly jump red. Wright currency due to a transaction website associated with Wright currency stock and futures trading, as well as professional team, can be used for mining Wright currency machine, the industry chain is very attractive.
People worry that competitive virtual currency boom will disrupt the normal order of the financial market, if not regulated, even derived some illegal behavior. Bitcoin’s market value of only $7 billion 500 million, the market value of the smaller competitive virtual currency, the total market value of many currencies even less than $100 million, is still not enough to impact the existing financial system, monetary and economic conditions. But the virtual currency is destined to be a risky investment. 对各种竞争性虚拟货币的投资更是“步步惊心”。 In the face of such a new thing the investment need luck, the myriads of changes, need more rigorous analysis and deep understanding.