On the afternoon of September 24, 2021, two documents led by the National Development and Reform Commission and the central bank were issued at the same time. In recent years, speculation in virtual currency transactions such as Bitcoin has been prevalent, disrupting the economic and financial order, breeding illegal and criminal activities such as money laundering, illegal fundraising, fraud, and pyramid schemes, and seriously endangering the property safety of the people. In order to establish a normalized working mechanism and always maintain a high-pressure crackdown on virtual currency trading speculation, the People's Bank of China and other departments have drafted the "Notice" based on the new risk situation and summarizing previous work experience.
The announcement clearly pointed out that virtual currencies such as Bitcoin, Ethereum, and Tether have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed accounts or similar technologies, and existing in digital form. They are not legal tender and should not and cannot be circulated and used as currency in the market. It is clear that the trading services provided by overseas exchanges are illegal financial activities. The state has officially made it clear that as long as it is not a digital currency issued by a national sovereign unit, it is all virtual currency! Virtual currency is a virtual commodity that is not issued by a monetary authority, does not have monetary attributes such as legal tender and compulsion, is not a real currency, and should not and cannot be circulated and used as currency in the market. Exchange, trading, providing information, virtual currency, are illegal transactions!
After the domestic ban on virtual currency transactions, the virtual currency market first experienced a short-term decline, then began to rebound and continued to hit new highs. Why did this phenomenon occur? Why did a policy that was apparently unfavorable cause a variety of virtual currencies to hit new highs? The same is true for the domestic ban on virtual currencies. Domestic funds poured into various virtual currencies at the last moment before the ban, causing this short-term decline and then a new high.
Young people around the world are currently facing the same dilemma, with reduced dividends, lack of opportunities, and being squeezed by capital. They not only have similar values, but also believe that technology can solve many social problems and are generally optimistic. In the cryptocurrency circle, there is a steady stream of young fresh blood. On Weibo, young people’s comments can be seen everywhere, such as “I would rather lose money in the cryptocurrency circle than take over the A-share market”, “Strike against Bitcoin is equivalent to locking up the country and handing over computing power to others”, and a more common sentence is “How can I buy a house without speculating in coins?” The reason why Bitcoin attracts young people is that it is almost the only chance for young people to counterattack. In this circle, there are too many myths of getting rich overnight. Mainstream people can criticize young people for going all out and being “gamblers”, but young people will refute them, “The vested interests have divided up the cake, and young people don’t even have the dregs to eat, how can they buy a house, get married, and have three children?”
The prosperity of the cryptocurrency industry among the general public in China basically began at the end of 2017 or the beginning of 2018. Through the promotion of various big Vs and the unlimited spread of convenient information transmission channels, this myth of making money in the cryptocurrency industry has occupied the minds of some people at the fastest speed. Of course, these people are all those who follow the trend of the cryptocurrency industry. If I go back to more than a decade ago, I would either invest in real estate or buy Bitcoin. Why?
Behind the prosperity of the cryptocurrency circle is people's dissatisfaction with the old order. This dissatisfaction is not limited to China or young people. It is a broad political right turn after the imbalance of globalization. After the financial crisis in 2008 and the European debt crisis in 2010, economic problems were not solved, but the gap between the rich and the poor widened due to quantitative easing. The reason why digital currencies based on blockchain can be widely recognized is that the financial system represented by legal tender can no longer solve the existing economic problems. Looking at the current political arena, Trump-style non-traditional politicians are also popular, such as Yoon Seok-yeol in South Korea, Johnson in the UK, and Zemmour in France. The indirect communication mechanism between the government and the people through the media established after World War II (such as Voice of America) was disintegrated by the new media. The Russian-Ukrainian war gave Merkel a slap in the face. Now looking at Bitcoin, it is easy to understand its surge. Rather than saying it is a prosperity in the cryptocurrency circle, it is better to say that it is people's desire for a new order.
Because I know that I have felt the huge wealth creation effect of these two industries in the past ten years, but when it comes to reality, I have not caught up. I think most people have not caught up. The rise of the currency circle continues to touch the public's nerves to get rich, and various concepts are also taking turns to brainwash, such as blockchain 3.0, the digital economy era, decentralized currency, the Internet 2.0 revolution, etc. Some even compare the currency circle to high-quality stocks that are about to be listed, list the myths of stock doubling of various listed companies, and exaggerate the currency circle project as the next 100-fold coin, so that you can get rich early in the morning. The public is deceived by dreams and feels that joining the currency circle is equivalent to joining the real estate speculators ten years ago. Coupled with family and community ties, this concept of wealth creation will be infinitely amplified.
People who participate in the cryptocurrency circle are usually themselves, their friends, and their families. This leads to an exponential growth of the capital system, a continuous stream of stories of wealth creation, an increase in the frequency of dissemination, a continuous flow of new blood joining, and infinitely magnified risks. Many people believe that the cryptocurrency circle is a future trend and do not want to miss the opportunity to get rich. Based on the amplified effect of community and family relationships, and watching the price of the currency rise, the project parties have slowly raised their sickles. Is it really a trend? After more than two years of development, the cryptocurrency circle is really a pseudo-trend, but there are always people who enjoy it. If nothing unexpected happens, the cryptocurrency circle will continue to prosper. #币安合约锦标赛
