Bitcoin Price Dive Monthly Nearly 40% Virtual Currency Heat Risk

The virtual currency bitcoin, which has surged 80 times in a year, is facing embarrassment. On the one hand, the trading platform has encountered restrictions on banks and Payment institutions, resulting in a nearly 40% jump in the bitcoin market in a single month. On the other hand, the virtual currency fever has also spawned dozens of "Shanzhai coins" in China.

Rising in China Virtual currency heat

Over the past year, it has increased by more than 80 times, or nearly 40% in a month, and the virtual currency with spectacular scenery has been "limited" by banks and Payment institutions. Bitcoin trading platform FXBTC recently announced the suspension of Renminbi recharge and bank card cash business. Another trading platform, BTC38.com, said it had received notice from the bank that it would stop recharging the renminbi.

Affected by this news, China's virtual currency market dived. According to bitcoin China's largest trading website, bitcoin dropped from 3951 yuan in March 4th to 2419 yuan in April 4th, or nearly 40%. In 2013, bitcoin quotas rose from 80 yuan to 6600 yuan, or more than 80 times.

"From last December to now, Bitcoin The offer fell from 6000 yuan to less than 2500 yuan. " Tanaka, a virtual currency investor and a testing engineer of a network company in Beijing, said that the 200 thousand yuan she had invested in has been cut.

Reporters interviewed learned that as bitcoin was skyrocketing, the "counterfeit" imitation of its form of domestic virtual currency is also emerging. Various online currencies take online trading, matching quotations, and varieties emerge frequently.

For example, according to the quotations of the Chinese virtual currency market "poly coin net", since January 2014, 16 online domestic virtual currencies have been declared "issued", and now there are dozens of virtual currencies that can be traded in China. Only in February 2nd and 3, in two days, there were "Penguin coins", "elephant coins" and "snail coins", and three domestic virtual currencies were announced on the line.

However, investment losses have become a common phenomenon. Some investors told reporters that in November of last year, they bought the "Yuan coin" of 119 yuan / dollar, but when they sold it, they had dropped to 26 yuan / dollar, which shrank by 80%.

　 "Three no" risk Not to be underestimated

China has become the largest bitcoin trading market. The head of a bitcoin website in Shanghai told reporters that only the platform had more than 200 thousand trading volume per day, and the price was more than 500 million yuan on time. Reporter survey found that although the virtual currency is not lack of technological innovation components, but as an investment product, its risk can not be underestimated:

First, there is a lack of security for capital security. Most bitcoin trading platform funds are stored in corporate accounts. Last October, the GBL trading platform registered in Hongkong, China, took away more than 30 million yuan of funds. Previously, bitcoin trading platform "Bitfloor" because of the value of $250 thousand bitcoin stolen, directly announced the closure.

Two, some virtual currencies are advertised freely, but the issuing mechanism is extremely opaque. In the case of a domestic "Shanzhai coin", which claims to have 5 million 200 thousand annual circulation, it is not known that its sponsor legal person and the so-called "algorithm" are published. Some investors reflect that their official website even conceals historical transaction data and is deliberately misleading "set up".

Three, there are legal flaws in the development line. In accordance with the twenty-ninth provision of the regulations on the management of Renminbi in People's Republic of China, no unit or individual may print or sell token money instead of Renminbi in circulation in the market.

The notice issued by the five ministries and commissions of the people's Bank of China on the prevention of bitcoin risks, issued in December 2013 by the ministries and commissions of the people's Bank of China, has clearly stated that bitcoin should be a specific virtual commodity and does not have a legal status equal to money. It can not and should not be used as a currency in circulation in the market. The notice has previously requested that financial institutions and Payment institutions not provide customers with services such as bitcoin registration, transaction, liquidation, settlement and so on. Therefore, blindly "speculation" has risks, and investment needs to be vigilant.