Bitcoin, which has become popular all the way, is a "scam"?

after a wave of unrest, another wave rises. This sentence is used to describe the recent state control of electronic tokens such as "Bitcoin", which can be said to be appropriate. In fact, since a few years ago, the relevant departments in China have repeatedly reiterated the risk warning of Bitcoin in various public occasions, and the bitcoin market has also fluctuated. Just as Bitcoin and its similar electronic tokens are still making great strides, this September, the government's regulatory storm finally came.

on September 4th, the central bank, together with the Central Network Information Office, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission, jointly issued the Announcement on Preventing the Financing Risks of Token Issuance, pointing at ICO (Initial Token Issuance), saying that the financing of token issuance has seriously disrupted the economic and financial order, and all kinds of financing activities of token issuance should be stopped immediately, and organizations and individuals that have completed the financing of token issuance should make arrangements such as repaying.

In this announcement, the government has also made an unprecedented harsh definition of electronic tokens. The announcement pointed out that "token issuance financing" is essentially an unauthorized illegal public financing behavior, which is suspected of illegal sale of token tickets, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities.

as soon as the announcement came out, the global bitcoin market immediately plunged, and its quotation fell from nearly 3, yuan to 2, yuan, and the market was in a panic.

If this policy is implemented, it will mean that the door of Bitcoin trading will be completely closed in China, and this "star" who was once popular in the financial sector has finally fallen in the China market.

In fact, China people are not the only ones who think so. Just a few days ago, Jamie, CEO of JPMorgan Chase, an American financial giant? Dimon publicly declared: "Bitcoin is a scam, and only murderers, drug dealers and people living in Venezuela should invest in it."

First of all, because the bookkeeping transaction of Bitcoin is completely decentralized, this token is inherently a "money laundering weapon", and all kinds of illegal transactions without security can be carried out through this token. It can be said that the existence of this "currency" itself provides great convenience to criminals with ulterior motives, and it may also lead to a large loss of foreign exchange in a country and bring serious social risks.

in addition, bitcoin may be priceless today, but its value can't be guaranteed because no country or international financial institution is willing to endorse and honor it. It should be noted that when Bitcoin just appeared, 1, bitcoins could only buy one pizza, but today, one bitcoin can buy several iPhone, and behind such amazing appreciation rate, there are equally amazing risks.

However, it is in this situation that not only bitcoin investment has become popular in China, but also various similar tokens, such as "Litecoin" and "Ethereum", have blossomed everywhere. It is really worrying that anyone who develops a blockchain electronic token can immediately collect large sums of money from enthusiastic investors. It is in this context that the country chose to take action this month and vigorously control Bitcoin.

electronic money, investment still needs to be cautious. Cherish what you have at the moment.