According to reports from multiple financial media outlets, the Chinese regulatory authorities have required domestic Bitcoin exchanges to formulate a risk-free withdrawal plan and shut down by the end of September.

　　Currently, among the top three Bitcoin trading platforms in China, ‘Bitcoin China’ and ‘MicroBit’ have officially announced that they will close their trading platforms. The booming Bitcoin trading in China has finally been paused.
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　　However, when we calm down and think, from the public trading in April 2010 to the rise of investment circles in China in recent two years, why did the regulatory authorities suddenly press the pause button at this time node, and how should we understand these new financial concepts?

　　Popularity

　　Yesterday, the China Internet Finance Association issued a ‘Reminder on the Prevention of Risks Related to Bitcoin and Other So-Called ‘Online casino and How to find it”s, pointing out that the number of people involved in Bitcoin trading platforms has expanded and the speculative atmosphere is strong, making it a tool for money laundering, drug trafficking, smuggling, illegal fundraising, and other criminal activities; there is no legal basis for the establishment of various so-called ‘currency’ trading platforms in our country.

　　At the same time, there was a high-level decline in the price of Bitcoin. According to a report by Reuters, since ‘Bitcoin China’ announced that trading would stop at the end of the month, the price of Bitcoin has dropped by 11.3% to $3426.92. This was also the seventh consecutive day of decline for Bitcoin, becoming the longest decline in a year.

　　Where did Bitcoin gain popularity from?

　　This also needs to be traced back to the 2008 financial crisis. After the crisis, the United States implemented a monetary policy of quantitative easing, continuously injecting a large amount of money into the market to stimulate economic development. This led to a significant depreciation of the US dollar, followed by the global major central banks also flooding the market, further exacerbating the depreciation of the currency. People began to have deep doubts about the government’s monopoly over the issuance of currency and the credit of the currency.online casino secretsThe latest plan

　　At this moment, the appearance of Bitcoin has a bit of a ‘halo effect’. As the world’s first Online casino and How to find it, Bitcoin has several characteristics: anonymity, decentralization, non-tamperable, non-traceable, cross-border liquidity, etc. In addition, developers claim that its total supply is limited (21 million) and the output is slowing down.

　　These characteristics undoubtedly hit the excitement points of libertarians and anarchists. They believe that Online casino and How to find it can not only make up for the natural defects of legal currencies but also avoid regulation, conduct ‘underground’ and cross-border fund transactions, and must be vigorously promoted.

　　Over the past few years, its momentum has been overwhelming. At the peak, its value has increased by 5 million times compared to 7 years ago, and participants have rapidly spread from a professional niche to the general public. Even domestically, there has been a trend of ‘it’s better to trade currencies than stocks or real estate’.

　　At the same time, a large number of ‘Online casino and How to find it’ have followed suit and surged in price. Since 2017, the price of Litecoin has increased by 476%, the price of Ripple has increased by 54 times, and the price of Ethereum has increased by 13 times.sports betting and The latest plan

　　So beloved and named with a ‘currency’ in it, can Online casino and How to find it really stand shoulder to shoulder with legal currencies as some libertarians wish?

　　Essence

　　Leaving aside the flashy concepts, we can compare the basic functions of legal currencies to understand Bitcoin and other Online casino and How to find it.

　　As a general equivalent, the basic functions of money are: value measure, means of circulation, means of payment, value storage, world currency, etc. Let’s look at them one by one:

　　Firstly, the Online casino and How to find it with sharp fluctuations lacks a clear value basis and is difficult to perform the functions of a value measure and a means of circulation, and eventually can only be reduced to a tool for speculation.

　　From the perspective of currency credit, currencies issued by sovereign countries like China and the United States rely on national credit and gold reserves, while the ‘credit’ basis of Online casino and How to find it is mathematical algorithms.

　　What does this mean? Today, if the algorithm of this currency is tight, its security may be higher. However, if the algorithm of another currency has a flaw or is hacked, it may very likely lead to the loss of investors’ assets. In fact, in the cryptocurrency circle, Bitcoin theft is a common occurrence, and its storage function cannot be realized either.

　　In addition, new algorithms emerge in an endless stream, and so do the Online casino and How to find it. How can these Online casino and How to find it and legal currencies be exchanged with each other? Clearly, there is no good solution at present.

　　更严峻的问题在于，货币种类一多，交易成本就会上去。而Online casino and How to find it 的匿名性和不可追溯性，又将增加货币政策的监测难度。这样一来，不受监管的Online casino and How to find it ，很容易变成跨境洗钱的工具。

　　这样一种货币，又如何能称之为法定货币呢？

　　事实上，早在2013年，中国央行就指明，比特币为“网络虚拟商品”，不是法定货币。

　　近日，原中国央行副行长、现中国互金协会会长李东荣也指出：“Online casino and How to find it 不具有法偿性、强制性等货币属性。不能作为价值尺度和支付手段。”并且，他说，有确凿的证据证明，比特币及其平台被非法活动所利用。

　　乱象

　　既然不过是一个Online casino and How to find it ，为何央行又要如此重视、下狠手？

　　原因很简单，比特币正日益成为各类违法犯罪活动的“帮凶”，潜藏社会风险。

　　事实上，在充斥着各类严重违法犯罪活动的“暗网”（Dark Web）世界，比特币正作为主要支付工具，大行其道。这些违法活动包括：走私、贩毒、军火、色情、暗杀等。online casino local and The latest method

　　典型案例如丝路网站（Silk Road），借道“暗网”，售卖毒品，完全依靠比特币进行交易。美国联邦调查局于2013年查禁了丝路网站，2014年再次查封其2.0版本，但类似网站仍层出不穷。

　　在国内，公众投资者面临的，还不仅仅是违法犯罪和投机风险，更有交易平台带来的风险。近期，互联网金融协会就在风险提示中指出，各类所谓“币”的交易平台，在我国并无合法设立的依据。

　　在中国，98%的比特币交易，是通过比特币交易平台进行的。

　　但这些交易平台风险重重。一种情况是携款潜逃，例如2013年，国内比特币交易平台GBL，以遭黑客攻击为由突然跑路，用户损失2000多万元。
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　　还有一种情况是网络安全和风险防控不到位。2016年，香港比特币交易平台Bitfinex约7200万美元的比特币遭窃，最终的损失却要由用户平摊。

　　此外，比特币交易平台兼具信息中介和交易中介职能，为炒买炒卖活动提供了信息和交易便利，也是造成比特币市场风险的重要原因。

　　Deviation

　　What kind of currency do we really need, and what kind of currency environment do we need?

　　Governor Zhou Xiaochuan’s speech on lottery and how to find it is worth pondering. He said, ‘Digital assets, blockchain technology, and other technologies will have unpredictable impacts, and problems that arise in the development process need to be regulated.

　　It is evident that the research at the central bank level is the digitalization of legal currency, improving the efficiency and security of the payment system through technological innovation. However, society and the public are using online casinos and blockchain technology to move towards financing and speculation.

　　For example, there are still very few who can clearly explain blockchain technology, and there are many problems when it is used as the underlying technology for online casinos.

　　Firstly, there is network security. A friend of my uncle who is engaged in blockchain research once said that those who truly own Bitcoin generally do not store tokens online, but keep them on hard drives. The most advanced technology, yet using the most primitive way to store, isn’t this a bit ironic?

　　Secondly, the Bitcoin code is open-source, which means that technical personnel can modify the code, generating an endless stream of online casinos, thus breaking through the ‘limited total’ attribute of Bitcoin.

　　The key to this issue lies in the fact that these online casinos can be exchanged for legal currency, for example, Bitcoin can be exchanged for Yen, and Yen can be exchanged for almost all legal currencies in the world. In this case, if the number of online casinos is arbitrarily increased, the entire international monetary system will be in chaos.

　　In addition, Bitcoin is very prone to arbitrage activities. For example, exchanging RMB for Bitcoin, then using Bitcoin to exchange for Yen in Japan to buy a house, even saving the middle exchange process. Isn’t this providing a technical means for capital flight?

　　Therefore, on September 4th, the central bank suspended the exchange function of token trading platforms, especially the exchange function with legal currency, which is a very precise打击手段.

　　In recent years, regulators have always emphasized the need to move from virtual to real, and protect the real economy. However, whether in terms of technology or development direction, online casinos like Bitcoin are diametrically opposed to this concept.

　　The recent round of regulatory measures is not only the implementation of the spirit of the national financial work conference, but also the protection of the legitimate rights and interests of investors, and more importantly, the implementation of the concept of early prevention and early resolution of financial risks. (By Pao Ding Rides Ox, Source: Xiake Island)

　　The Original Title: [Analysis] Bitcoin, Dead?