Todd Bishop
Recently, the prices of virtual currencies such as Bitcoin have risen rapidly. According to the trading platform Coindesk, Bitcoin has stabilized at US$7,000. Some market participants expect that the overall value of Bitcoin will easily exceed gold in the next 20 years. However, the function of virtual currency such as Bitcoin as a currency has not yet been recognized at the international and national levels. The current bearish voice of virtual currency is still very popular in the capital market.
Bitcoin once saw a high of 7577.77 yuan today, compared with the closing price of 3.865.53 yuan on December 29 last year, the cumulative increase during the year was 96%. The price of virtual currency has risen sharply in recent days, and the global virtual currency market value has exceeded 200 billion yuan.
Bitcoin’s performance during the year made it the best performing asset in the world this year. In the second place, it is the gasoline futures contract of the New York Mercantile Exchange, which rose 51% during the year.
Global market analyst Alex Krüger once pointed out that when Bitcoin rose above $6,400, it confirmed that the new bull market in the virtual currency market will officially open.
Draghi: the virtual currency is not real money
“CNBC” has issued a statement that the reasons for the rise in bitcoin, or the interest from large investment institutions in bitcoin transactions, such as the Intercontinental Exchange (ICE) Bakkt trading platform, Fidelity’s cryptocurrency trading services, etc., indicate that the bit The mainstream adoption of the currency will gradually expand.
However, on May 9, the official Central Bank of Europe (Twitter) released the bank’s president Mario Draghi’s view of the data currency, pointing out that “virtual currency such as bitcoin is not a real currency,” It’s assets. The euro is the euro. Today, tomorrow or a month, the euro has always been the euro. The European Central Bank provides support for the euro. Who provides support for the cryptocurrency? So they are very risky assets, their value. As you can see, it is very crazy. At present, they are not enough to have a huge impact on our economy, so we tend to view them as a speculative asset with a very high risk.”
Kuroda Toshihiko: cryptocurrency used for speculation
Japanese Bank of Japan Governor Haruhiko Kuroda also said: “Cryptographic currency is not a legal currency and is extremely unstable. At the same time, encrypted assets are basically not used for payment and settlement, but for speculation. Considering that crypto assets may be Impairing people’s trust in payment settlement, the Bank of Japan will continue to monitor its movements.”
In 2018, the Bank for International Settlements (BIS), known as the “Central Bank of the Central Bank,” issued a report saying that there are a series of defects in the sub-accounting cryptocurrency such as Bitcoin, which may even cause the entire Internet to collapse. The BIS report pointed out that the most fundamental flaw in cryptocurrencies is the lack of institutional arrangements at the national level. Specifically, the characteristics of cryptocurrency decentralization have led to many problems, such as inefficiency, waste of energy, and weak consensus.
