In 2013, the People's Bank of China jointly issued the Notice on Preventing Bitcoin Risk, which shows that Bitcoin is a virtual currency with certain risks, so many people have a great misunderstanding of Bitcoin. Now let's look at the misunderstanding of the Bitcoin.
1.Bitcoin trading is prohibited in China. It is illegal to invest in Bitcoin.
In fact, the People's Bank of China only says that Bitcoin is a virtual currency and a kind of commodity trading on the Internet. It can invest freely on the premise of taking risks. It only limits the participation of financial institutions and Payment institutions to a certain extent. However, while buying Bitcoin, we should also recognize the risks of Bitcoin.
2.Bitcoins are purchased by money laundering.
Bitcoin has anonymity and cross-border circulation, suggesting the risk of money laundering, leading some people to think that buying Bitcoin is money laundering. Some responsible Bitcoin companies, in view of potential risks, require real-name system and anti-money laundering obligations, control risks and eliminate money laundering.
3.It is believed that Bitcoin will replace legal currencies such as personal currency.
Bitcoin is only a virtual currency. Without a substantial issuer, it is absolutely impossible to replace French currency. Some countries agree that Bitcoin is allowed to pay, but it is only an intermediate currency. Commodity prices are still calculated in US dollars and settled in US dollars. So Bitcoin is only a supplement, not a substitute.
4.Fear of the sudden disappearance of Bitcoin.
Bitcoin is a completely open and decentralized social practice. Bitcoin has no substantive issuer. The company's participants are not issuers. The development of Bitcoin is the result of marketization. But all the so-called issuers who issue Bitcoin are pyramid selling scams. Please shine your eyes.
The above statement is the misunderstanding of Bitcoin, and I hope it will be helpful to you.