Bitcoin is an electronic currency generated by Peer-to-peer software with open source code.

Bitcoin is "a kind of electronic money generated by Peer-to-peer software of Open source code". At the beginning of the birth, bitcoin only in the computer "geek" and other small circles popular. But this year, with its stunning shock market, Bitcoin has been highly concerned by global investors and the media. I can't help asking: Where does bitcoin come from?

One explanation is that the European financial crisis has left some countries with a loss of confidence in the existing currency, and a currency that seeks Cross-border value and even appreciation has boosted the market value of the Bitcoin. Another explanation is that, in order to avoid investment in industrial risk, many investors will look to the "money to raise money, to make money," the Bitcoin, which in turn has pushed up the trend of Bitcoin.

As a kind of fictitious currency, Bitcoin belongs to the financial innovation of the network age. But now bitcoin seems to be straying from its normal trajectory. There are two ways to gain a bitcoin. One is "digging", the other is buying on several well-known trading platforms, like buying or selling foreign exchange, in accordance with the prevailing premium. Because the former "threshold" higher, the need for a certain mathematical basis, and with the "digging" more and more people, computer hardware requirements are more and more high, therefore, the second way by more and more people's praise. When more and more people no longer honestly to "dig the mine", but clinging to the "mining pool" nuggets, rely on real money to buy and sell, the emergence of bubbles in the inevitable.

By design, Bitcoin has 21 million caps, and many people regard Bitcoin as a safe haven currency. But confidence in money comes from its value and credit. Bitcoin itself lacks precious metal support, is not protected, and it is virtual, the lack of physical existence, if the issuer's trust bankruptcy or encounter stopped, Bitcoin will be worthless.

Worries are not just about asset safety. With the "money coming", a lot of "hot money" may pour in, and if regulation and control measures are not followed, then the risks ultimately require high cost of honour, or even cause financial turmoil. What is even more frightening is that when bitcoin is simply a "transfer money" tool, its initial financial innovation features will fade away, instead of becoming a "gold-sucking hole", thus squeezing the investment in the real economy, which is clearly contrary to the principle of financial innovation to serve the real economy.

Not only Bitcoin, in the internet age, we may face more and more similar financial innovations. To encourage financial innovation, but also pay attention to risk prevention. How to guide these new financial things, so that they become the lubricant of economic gear rather than the barrier, is an important issue in front of us.