Digital currency currency reform to promote the digital society
Some time ago, the bitcoin currency exceeded 2000 and $3000, new record highs in the past six months, bitcoin has more than doubled, an increase of more than 10 times more than the 2015 lows; more than bitcoin crazy and Wright currency, Ethernet Fang and other internet currency, in the second half of the time jumped more than 5 times. The outbreak of the wealth effect of growth brings, attracted the attention of global capital, raised concerns about the currency of the Internet bubble, but also makes the internet currency is more and more mainstream cognition.
The Internet internet currency is the trend of social development
The emergence and development of internet currency is the inevitable trend in the development of society and economy. The social and economic activities in the world more than 3 billion internet users on the Internet in the formation of a large number of free circulation of money demand, and the currency of the Internet to break the existing national monetary credit and exchange regulation based on the constraints of time, in accordance with the features of social and economic activities in the Internet era. From the current perspective of the development of internet currency can be divided into two types, one is issued by the Internet community, and was accepted by the community members, community members and virtual currency in circulation in the range, such as the Tencent of the community Q coins and other virtual currency, with expansion of the Internet community members and community scale and influence continue to be more recognized and used, but its value is often a fixed currency, and did not have an impact on the existing monetary system; the other is a block chain of Internet information technology encryption based on virtual currency emerging, such as bitcoin, this encryption compared to the virtual currency and the present legal currency, has the characteristic to the center and the anonymous circulation, often do not have a focus on the issue of institutions, but the computer software based on specific algorithms run by network nodes, generated by a large amount of computation, and can be anonymous circulation in the global scope.
Born in 2009, bitcoin is a virtual currency encrypted first generation, is a revolutionary exploration of Internet monetary function, the issuance and circulation system breaks through the current currency monopoly in a certain extent, is considered to be the currency of the future. In bitcoin, all kinds of virtual currency bitcoin related encryption based on the principle of large numbers. Although the virtual currency encryption as the representative of bitcoin is still unable to shake the current legal tender status, but it builds the internet currency issuance, circulation system based on, and began to practice in the Internet society. Has the country, more and more financial institutions to recognize the significance and development trend of Internet technology, innovation principle, the influence of money on the existing monetary system. Japan in April this year officially as a legitimate bitcoin payment, to further promote the legalization of internet currency, Japan has become the world’s largest bitcoin trading country; block chain technology RIPPLE open payment network has been accepted by more and more based on large financial institutions, for cross-border payments, reduce transaction costs; bitcoin Internet etc. The currency related enterprise has become the focus of risk investment. Although the current internet currency is still in the edge position, is still in its infancy, showing the characteristics of barbaric growth, but it brings innovation has very important significance for the future development of financial.
The internet currency is still wary of short-term risk
Although the internet currency represents the future trend of development, but the short-term risk still can not be ignored.
On the one hand, the Internet in the currency after the birth of trading in the market, with soaring prices, with larger trading risk. Such as bitcoin, 2013 in the pursuit of the concept of internet currency, currency soared more than $1000, the highest in 2014, the largest bitcoin exchange bitcoin stolen, currency plummeted, $more than 100. In 2017, affected by political and economic factors and regulatory policy and the currency of the Internet technology continues to improve and mature, more time bitcoin within half a year fast exceeded $3000, a record high frequency, in 8 years time bitcoin created the Internet monetary wealth myth, directly and indirectly promote a rise and the value of a variety of internet currency rose, attracting a large number of Internet monetary wealth chase.
The world’s major trading currency on the Internet including bitcoin, Wright coins, Ethernet square, dogs coins, coins and other infinite, based on all kinds of algorithms of Internet money are ten. The Internet is just the most money using the concept of currency holders and attract capital speculation, and has not been widely recognized and applied. And because the internet currency volume is small, the holder or concentration of a large amount of funds under the condition of price is extremely easy to be manipulated.
On the other hand, the internet currency legal and regulatory risks are still high. Due to the center and anonymous characteristics of internet currency, which has been widely used to avoid global financial regulation, the field of global crime and all kinds of financial transactions and the exchange of gray areas, there are still a lot of regulators of internet currency negative and a wait-and-see attitude, existing laws and policies with high risk.
Achilles heel is the currency of the Internet’s information security
The internet currency, especially virtual currency block encryption technology based on the chain, is completely dependent on information technology; no information carrier, internet currency cannot reflect its value. So the information security from the beginning of the birth of the internet currency is its Achilles heel. Virtual currency to encryption to the center of the circulation and anonymous “features, once in a distributed node in the information security problem, may lead to all currencies stolen and unable to back the currency ownership, paralysis and even the whole currency issuance and circulation system. At the beginning of 2014, the world’s largest bitcoin exchange operator Mt. The Gox security vulnerabilities in the trading platform of 850 thousand bitcoins stolen, resulting in the exchange of bankruptcy, bitcoin slump triggered.
With the sharp rise in the currency of the Internet, the huge wealth driven by interests, will have the encryption algorithm, more focus on the Internet hackers break all kinds of currency in the currency of the Internet so the legalization and standardization of the application process, information security is the priority among priorities of the development of the Internet security money.
At present, in China, internet currency and no legal, official definition of regulators bitcoin is still “is a kind of virtual goods in particular, in the context of risk prevention, and can be traded, but does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market”. This does not preclude the China become Japan, third bitcoin trading country after the United states. The innovation of internet currency and its related technology is the trend of an important long-term development in the information age, as the world’s most populous country Chinese, with the most active and the huge size of the Internet economy, to actively participate in the currency of the Internet technology innovation, to accelerate the standardization of internet currency production, circulation, safety and short term, healthy development.