What is virtual currency?

Virtual currency is currency used for electronic circulation. Nowadays, the range of virtual currencies is very large, including Q coins, Bitcoin, etc. As digital currencies develop and grow, virtual currencies become more abundant and may become mainstream in the future. For example, BTC, EOS, BCBOT, etc. are no longer just virtual currencies. They already have algorithms, implementation projects, and technologies.

Virtual currency is mainly issued by online game service providers and used to purchase props in the game, such as equipment, clothing, etc. However, the current use of virtual currency has gone far beyond this scope. Virtual currency can be used to purchase game points, physical objects, and download services of some videos and software.

Extended information:

Realistic risks

As a product of e-commerce, virtual currency has begun to play an increasingly important role, and it is becoming more and more realistic. Worlds meet. However, while virtual currencies are growing, relevant regulations are lagging behind, posing many hidden dangers.

Fraudulent behavior

Private transactions of online virtual currencies have, to a certain extent, enabled two-way circulation between virtual currencies and RMB. The activities of these traders include purchasing various virtual currencies and virtual products at low prices, and then selling them at high prices, relying on this price difference to make profits. As this trade increased, there were even virtual mints. In addition to the virtual currency provided by the main company, there are also some people who specialize in "virtual currency minting", who obtain virtual currency by playing games professionally and then resell it to other players.

Take the Wenzhou area as an example. There are about seven or eight such "virtual coin minting factories" with four to five hundred employees. This not only creates a bubble in the price of the virtual currency itself and troubles the normal sales of the issuing company, but also provides a platform for various cybercriminals to sell stolen goods and launder money, thus triggering other bad behaviors.

Impact System

In the modern financial system, the issuer of currency is generally the central bank of various countries, and the central bank is responsible for the management and supervision of currency operations. As an equivalent exchange item used to replace the circulation of real currency on the Internet, online virtual currency is essentially no different from real currency. The difference is that the issuer is no longer the central bank, but various Internet companies.

If the development of virtual currency forms a unified market, and various companies can communicate with each other, or the virtual currency is integrated and unified, and they are all used with the same standards and prices, then in a certain sense In a nutshell, virtual currency is currency, and it is likely to have a threatening impact on the traditional financial system or economic operations.

Reference material: Baidu Encyclopedia-Virtual Currency