The people’s network four questions bitcoin chaos, virtual currency the strongest regulatory era

The People’s Daily Online “Strong Observation” column recently launched a series of “Four Questions on Bitcoin” reports to sort out the Bitcoin issue.

The people's network four questions bitcoin chaos, virtual currency the strongest regulatory era

A few days ago, the “cryptocurrency circle” aroused much concern. Following the announcement of the three major associations to remind the risk of coin speculation, the Financial Committee of the State Council made a strong statement, once again clarifying the strict regulatory attitude of the financial regulators towards bitcoin: “cracking down on bitcoin mining and trading, and resolutely preventing the transmission of individual risks to the social sector”.

On June 21, the People’s Bank of China interviewed a number of banks and payment institutions regarding their provision of services for virtual currency trading speculation.

Where does the “fever” come from? How does “mining” consume energy? What is the chaos in the “cryptocurrency circle”? How to develop blockchain in a healthy way? With these questions, the People’s Daily Online “Strong Observation” column recently launched a series of “four questions about Bitcoin” to sort out Bitcoin issues.

A question about bitcoin: why regulation comes one after another and how big is the risk of speculation?

In the context of the recent strong regulation, the “cryptocurrency circle” has received a “huge shock”. This has brought the act of coin speculation into the public eye and brought a series of problems behind it to the surface.

Experts say that continuing to “mine” crypto tokens is to continue to be in opposition to the law. As virtual currencies erode legal tender and financial security, national laws and enforcement will only tighten. “Whether you want to or not, the law is there, not in vain.”

Second question about Bitcoin: “Mining”, how energy intensive is it?

“Without any policy intervention, the annual energy consumption of China’s bitcoin blockchain will peak at 296.59 terawatt hours in 2024, generating 130.5 million metric tons of carbon emissions.” Bitcoin’s high energy-consuming nature has caught the attention of countries around the world.

In recent years, Bitcoin has attracted more and more “miners” to “mine” because of its high profits. Mining” requires the use of computers as “miners” to perform specific algorithms and compete for the right to broadcast blocks. The “miner” who gets the right to broadcast the block receives bitcoins as a reward. During the computation process, the entire Bitcoin network consumes a lot of electricity and computing power.

Three questions about Bitcoin: How much chaos is there in the “cryptocurrency world”?

With the hype surrounding Bitcoin, the “cryptocurrency community” has been plagued by chaos. According to data from the China Judicial Documents website, since 2011, there have been 2,130 judgments in criminal cases related to virtual currencies, with the number increasing each year, reaching a high of 595 in 2020.

In these cases, virtual currencies acted in different roles. For example, in some cases, virtual currencies are “financial products” using the latest financial technology; in others, they are “commodities” and “points” fabricated by pyramid schemes; and even in some In some cases, virtual currencies are also used as a tool to pay for drug money, gambling money and money laundering. These cases have a wide scope and involve millions of dollars, causing a very bad impact on society.

Four questions about Bitcoin: How can the blockchain develop healthily?

When it comes to Bitcoin, many people will bring up blockchain, and some people even think that Bitcoin is blockchain. Is bitcoin the same as blockchain? How can blockchain help the real economy? And how will it develop healthily in the future?

Experts believe that blockchain is the underlying technology of Bitcoin, and Bitcoin can only exist and run with the technical support provided by the blockchain, and the relationship between the two is more like that of dependency and dependency. But the application of blockchain is not limited to the financial field, it has a wide range of applications.

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