"Three without" Bitcoin, fate has long been doomed

The recent bitcoin in the domestic scenery Unlimited, prices have been small growth, and in the funny type of "Chinese aunt" participation, Bitcoin finally in November crazy Rally--November 19 Bitcoin exchange for the highest transaction price of RMB 8000 yuan, compared to the beginning of the year up nearly 80 times times! In addition to the professional Bitcoin trading platform, Taobao in total with bitcoin related to the baby up to 2,686, of which the highest sales for "Bitcoin bit-coin mining tutorials, Buy Tutorial package guidance (computer hanging Machine money tutorial)", has 2250 people pay, 2153 people receive goods.

But never thought, Bitcoin was brutally put together-the People's Bank of China, the Ministry of Information, the CBRC, the SFC and the CIRC jointly issued the "Prevention of Bitcoin risk notice." The notice said that Bitcoin does not have legal solvency and mandatory monetary attributes, not the real meaning of the currency. In nature, Bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market.

With the announcement, the price of domestic bitcoin fell, from the highest 7000 yuan to 4523 yuan, and then back to 5700 yuan, the value of the devaluation of Bitcoin has reduced the total amount of Bitcoin global values by 5 billion dollars. Thus, the media immediately change their attitude, from advocating Bitcoin innovation, advance and importance, turn to criticize Bitcoin risk, harm and meaningless.

On the official website of bitcoin, one of the contents shows that the "public service"--the official online narration is Publicgood. But it is clear that the Chinese government does not think so, for the moment, the Bitcoin almost and show its public interest. The only thing we know about the public good. April 22 this year, some people donated 117 Bitcoin for the Yaan earthquake and exchanged cash into the disaster area through the China Bitcoin Association.

At that time, the media questioned the motives of the donation of Bitcoin, that the bitcoin is a pure virtual product, in the national disaster donations to donate the virtual product itself is not rational. The big possibility is for the public to have a great interest in strange Bitcoin, and for the value of their investment, so that the Bitcoin trading market for some time to remain active. It can be seen that the public welfare of bitcoin is obviously inadequate, the central bank will naturally not consider its public welfare.

Bitcoin originally as a virtual currency, although the recent price rise is inconceivable, but in the final analysis or hope to obtain a legitimate currency status, the urgent need for recognized institutions to recognize. As a result, the fall in the price of Bitcoin is understandable once government departments confirm that Bitcoin does not have the same legal status as a currency in a relatively tight market in China. Without the recognition of recognized institutions, Bitcoin is like a "zero job" without formal preparation, and it cannot be compared with the word "currency" at any time. This, too, has become the issue that Bitcoin has to face when it is denied by the central bank at home.

Bitcoin is not a legal currency, and if it is allowed to speculate wildly, freely circulate in the market and produce the value of money, it will weaken the legal nature of the currency. And this kind of unsecured, no credit payment tool, in the real transaction process will face many problems, such as how to ensure that the value of the transaction is equivalent, how to confirm the real-time price of the bitcoin. In addition, without the corresponding recognition of State organs, many people are worried about whether Bitcoin will become a "MLM gimmick." In fact, Bitcoin, although not recognized by the Government of its legal status, but no national monitoring, the introduction of policies will have a certain Bo role. And the policy can continue to adjust in the future time, need not worry that Bitcoin will escape "the palm of Buddha's ancestor".

It is noteworthy that, although the Government recognizes that it does not have a legal status equal to the currency, it cannot and should not be used as a currency in the market, but it does not prohibit the circulation of Bitcoin, but defines the trading of Bitcoin as a commodity on the internet, in which ordinary people have the freedom to participate at their own risk.

In other words, Bitcoin has not been a recognized currency in practice, but it may turn into a virtual monetary value measure of private transactions. From the essence of Bitcoin, it is neither a financial product nor a currency, because it has no substantial products to support, there is no collateral for goods, and no subject to bear its credit, no one to guarantee their credit. In this case, the legal solvency and compulsion of the currency is of course gone. Therefore, it is not a financial product, much less a currency.

Perhaps the point of view of the bitcoin is that the central bank will put it together, but in fact, the "three without" characteristics of Bitcoin, long before its entry into the Chinese market has doomed its fate.