Securities Times: bitcoin virtual currency speculation plunge exposed Ponzi nature

Source: Securities Times

In the vicinity of $6000 bitcoin 11 sideways for nearly two months or 14 months from the date of the sudden expansion, led the entire virtual currency market slump; 11 on Sept. 25, bitcoin again diving, inscribed in a day even below $4200, $4100, $3900…… The $3500 mark in December last year, compared to highs of nearly $20 thousand, less than a year, bitcoin fell more than 80%.

About the collapse of bitcoin virtual currency led, many analysts generally believe that the main or early speculation, bitcoin virtual currency to the top of the bubble. Currently bitcoin in a bear market, not good still can not support the current price. Bitcoin itself is unable to generate revenue, if there is no successor, selling stock market will be a persistent behavior, that is to say bitcoin prices will continue downward, and far in the end.

In fact, such as virtual currency bitcoin even bubble is not, because this is just a digital virtual currency code no practical meaning, will not have any real value, investors buy just hope the next offer man will pay a higher cost, the revenue mainly from the sale price, and this is just Ponzi wealth transfer only, because this speculative game need to have unceasingly successor to continue playing, once the collapse of investor confidence stop admission, the game will be difficult to continue, all virtual currency will return to its original value: zero.

Bitcoin virtual currency is attractive, mainly due to the bottom of the block chain technology. Block chain, the mysterious data on bitcoin based processing technology is described in almost perfect, decentralization, openness, autonomy, can not be tampered with, the article can do is used in the financial sector, even by the coin game player to create a circle of unique financing way: (imitating IPO IPO), created ICO (first token issue).

This is just a piece of blank “underground market supervision”. Here, only a few million dollars can be easily manipulated Zuozhuang, crazy prices rise, pseudo entrepreneurs a story together, a white paper, you can build a ICO project, issued token fund-raising, with a “blockchain” coat cloth Ponzi scheme.

But the blockchain technology is not a panacea, even more applied to the financial sector, a single transaction, this technology has appeared serious loopholes. In fact, bitcoin transactions are not convenient, according to official data, bitcoin supports up to 6 transactions per second, and the average PayPal per second can support 193 transactions, the average Visa per second can support 1667 transactions. More simply, block chain mechanism, each a bitcoin transaction into a transaction in the pool, when these transactions completed 1 MB, the packet will be formed into blocks, a node and by all network users to authenticate and record, so each transaction requires a lot of time to authentication and record.

All the technical gimmicks complicated, compared the blockchain public ledger and traditional center books, there is a gap in logic always insurmountable — that is a public account transaction processing node is always the center of multiplication books.

This is also the block chain has no large-scale application of the scene, can not be called why in technology innovation in the financial field. After the central bank stated that the blockchain project is really landing and produce social benefits rarely, so don’t exaggerate or superstition block chain, industry these years of practice has proved that some block chain application direction is not feasible.

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