Strong Regulation Of Bitcoin And Other Virtual Currencies

[sylvaC]

Many are worried about the virtual currency such as bitcoin being strongly regulated. In fact, as a new form of "asset" dispersed and independent of any one country, the virtual currency depends fundamentally on two aspects: First, the recognition and consensus of the international community. The more people recognize it, the better the outlook. Another is the development prospect of the blockchain where the virtual currency is located. As a public chain, its toughness, better ecosystems. The higher the degree of concentration, the more rely on the virtual currency will also have the basis for development. Therefore, the main risks the virtual currency has always faced come from the following two aspects: First, whether the mainstream countries can recognize whether they can enter the stage of popularization; secondly, whether the development of the blockchain can break through its own technological bottleneck; as the ecosystem grows Complex, the interests of all parties can be coordinated.

From the first point of view, at present bitcoin has been initially approved in Japan, Australia and other countries, but in the United States, Europe and other countries, the recognition is much worse. The most crucial reason lies in its natural "payment" potential challenge to the authority of the legal tender, as well as in the areas of cross-border capital flows, anti-money laundering and criminal financing. As for the alternative issue of legal currency, more and more people are actually aware that the fictitious currency itself is far more determined to defend the sovereignty of the currency than other countries.
At the same time, troubles in the areas of foreign exchange control, anti-money laundering and criminal financing are also problems. The disappearance of these "troubles" depends on the progress of regulatory science and technology. After all, only when regulators can truly control the flow of virtual money, It is possible for currency to enter the general public and become a regular investment product.

From the second point of view, the ecology of the Bitcoin blockchain will soon undergo the challenge of division. As early as August of this year, with the deployment of segregation testimony, Segwit2x1 announced its plans for the next three months and will continue to promote 2MB expansion according to New York consensus agreed by miners and enterprises. The plan is clearly mentioned

"In November 2017, about 90 days after Quarantine Witness was activated in the Bitcoin blockchain, Bitcoin miners will generate blocks between 1MB and 2MB in size to achieve network expansion. More than 90% of bitcoin network computing will be involved in mining in this large area. "

On the other hand, the Core development team plans to launch Bitcoin Core0.15.0, a new version of the Bitcoin Core client, which will not support the SegWit2x node. This means that nodes in the blockchain must be chosen one by one. If they do not reach a consensus, they will split up and the bitcoin will be split again. At least for now, in the next two months, Bitcoin bifurcation seems to be a high probability event.

In view of the above reasons, the future trend of bitcoin and other virtual currencies, there will indeed be a great deal of uncertainty, investors still have to avoid the risk. Speaking here, then a few wordy investor education. In fact, many investors do not change their mentality as long as they pursue high returns. Their role in self-regulation and publicity is relatively limited.