Where is the future of Bitcoin?

The sharp plunge in the price of Bitcoin has always been impressive. In Monday, Bitcoin, the btc-e on the Bitcoin trading platform, fell to $309 trillion, falling nearly 40% per cent from the top price of 498 dollars a day. It is worth mentioning that Bitcoin is not the worst of the "digital currency", and the dark currency plunged 48% on the darkcoin. Since the 1242 dollar spike last November, Bitcoin has fallen by more than half, falling and deteriorating in recent weeks. Domestic Bitcoin prices also plunged, at the end of last weekend, after 3000 yuan, the lowest in Monday to 2751 yuan, set a new low in May. As of 19th, when the reporter press, the transaction price in 2925 yuan.

Since the birth of 2009 to the end of last year, the price of bitcoin has soared. But this year, the Bitcoin trading platform has frequently exposed problems such as hacking and technical failures, especially after the world's largest platform, Mt.Gox, suffered a bankruptcy crisis after the theft of Bitcoin, and prices fell sharply. In order to guard against the risk, the foreign countries have strengthened the bit currency regulation, our country last December 5 issued "on guard against the bit currency risk notice", this year several banks have ceased to provide the financial service for the bit currency transaction successively. Analysts said the tightening was the cause of the collapse in the price of Bitcoin, but the recent fall was somewhat baffling.

"The price of Bitcoin has been much better than before, but the two weeks have really fluctuated," he said. "Bitcoin China (BTCChina) Vice President Ling August 12 in an exclusive interview with this reporter, said btc-e platform due to leveraged loans led to a large number of short time, but then the price was pulled up. The decline in domestic prices was due to the cessation of financial services and the decline in capital access. There are people in the industry, from abroad, the first half of the currency speculators, but the real use of Bitcoin people grow steadily, because more and more accepted businesses. Some experts believe that bitcoin's most optimistic prospect is to become a local payment method in the case of security.

The price of another slump is unclear

The price of Bitcoin is hovering above $600 trillion last week, August 11, according to trading data from the various Bitcoin platforms. For only a week, prices fell continuously, falling one-fourth. In the case of the recent plunge in the global Bitcoin market, insiders say the cause is unknown and may be affected by multiple factors. From the message side, the New York Digital Currency Act shadow, resulting in the uncertainty of Bitcoin. The reporter noted that the draft New York State digital currency license (bitlicenses) is currently in the hearing stage and will be closed on September 18. As the draft of virtual money-related enterprises in consumer rights and interests protection, technical security and capital requirements of the strict requirements, the industry is worried that will lead to the industry "collapse." In addition, August 11, the U.S. Consumer Financial Protection Bureau issued a warning on the risks of virtual currencies such as Bitcoin, which include unclear costs, Exchange rate fluctuations and vulnerability to hackers and spam attacks.

The increase in Bitcoin regulation is a matter of controversy, but the frequency of risk events underscores the need for regulation. August 15, the domestic famous counterfeit currency exchange bit son (bter.com) claimed to be hacked, stolen 50 million nxt (future coins). The latest development is that bit has reached an agreement with hackers to buy back all 50 million nxt by paying 320 Bitcoin. Most analysts believe that the domestic bitcoin price below 3,000 is the direct result of the incident.

In addition to the message surface factors, some insiders believe that domestic miners sell Bitcoin to repay electricity or borrow money is also important reasons. Bitcoin mining industry is a capital-intensive industry, the early investment is very large, many miners are borrowing to buy ore machines, such as CPUs, motherboards, power supplies and chassis boxes. And now the domestic relatively large miners to repay the time, concentrated coin repayment, the supply and demand relationship broke down the price of Bitcoin. In addition, the new virtual currency Vpal (V-po) large-scale circle of money, but also caused the digital money market bokhary in gold.

Local payment means or Bitcoin future

Regulators and price declines have cast a shadow over the bitcoin industry, with many analysts pessimistic about their prospects. However, Ling that, from the global trend, the outlook is OK, not too bleak. Reporter notes that the bitcoin application this six months in foreign countries have developed rapidly, every week there are large merchants to accept Bitcoin. Last week, Rakuten, known as "Japan's Taobao", announced that its U.S. subsidiary would accept bitcoin payments. At the same time, the world's well-known bitcoin wallet and inquiry company Blockchain's wallet number exceeded 2 million, which means more and more people use Bitcoin. Industry insiders said, although there is speculation funds withdrew from the bitcoin market, but more and more people with Bitcoin.

Unlike abroad, the current domestic bitcoin is mainly a speculative tool, not a payment tool in the real economy. There are insiders said, "this thing in the domestic is pure fry, the practical value is weaker." "Ling introduced that at present, tens of thousands of companies abroad accept Bitcoin as a means of payment, such as Microsoft, Dell, etc., but not at home." "There are successful cases abroad, indicating that this model is going through, and that the country will keep up at some time." "Ling expected.

In order to prevent the risk of money laundering and maintain financial stability, China has unprecedented supervision over the implementation of Bitcoin, including the announcement last year and the cessation of financial services provided by several banks and third-party payment agencies this year. Some experts said that in the face of adverse situation, the domestic Bitcoin trading platform will actively look for a way out, taken from the "online" to "offline", or even directly "migrate" overseas to evade regulation. "The domestic platform is very affected by regulation, our main team is still at home, but some platforms are starting to be abroad." "Ling that the platform to go underground, the website moved overseas, is not conducive to the prevention of money laundering risk."

Ling said that the local payment means is the future of Bitcoin, Bitcoin application to make progress in the domestic first to do a good job of risk prevention. He suggested that, on the one hand, regulators should coordinate with trading platforms to form a risk-prevention force. Regulatory authorities should implement the "congestion" policy, the introduction of regulatory rules. If the platform completely moved abroad, abide by foreign laws, it is not conducive to cooperate with the investigation. On the other hand, the trading platform should strictly comply with anti-money laundering laws and regulations. Ling introduced, the current Bitcoin China (BTCChina) to the trader to implement real-name certification, and the Ministry of Public Security identity Card Certification Center to achieve docking. At the same time, for more than 200,000 yuan of customers, ask them to upload identity documents, but also for inquiries.

(Responsible editor: Lvguang)