What kind of property does digital currency belong to (What kind of industry is digital currency)?

08/16/2023 21:49 • Blockchain Buzz • 160 views

What kind of property does digital currency belong to? What kind of property does digital currency belong to?

According to the Civil Code, individuals can trade and transfer their digital assets in token form in the accounts of banks, insurance institutions, or other financial institutions. If the digital currency generated using blockchain technology is obtained through internet issuance or circulation, then this virtual commodity (including Bitcoin) is a legitimate and legally protected economic activity.

In terms of specific scope, digital currency is not only a means of investment income, but can also be used to pay interest and various social public welfare undertakings. However, because the current laws in our country have not clearly defined this, digital currency cannot be used directly for commercial transactions. Therefore, whether it is Bitcoin or other cryptocurrencies, they are not truly “securities” in the strict sense, and can only be considered as ordinary investment tools. (People’s Forum Network · Learning Times)

What kind of industry is digital currency

The definition of digital currency is distinguished based on different types of technology, among which Bitcoin is the most typical.

Specifically, Bitcoin is a type of encrypted asset that experiences significant price fluctuations, making it sought after by investors, but at the same time, it is also an unstable currency, so there are certain risks in terms of investment.

For example, the high price volatility of Bitcoin (e.g. $21,000) and the high transaction volume of Ethereum have led to an increase in market demand for Bitcoin. However, Ethereum still needs to strengthen its liquidity and security due to its decentralization characteristics. (Mars Finance Note: Currently, the circulating currency on the market is Bitcoin), and among these digital tokens, only one is Ethereum token.

In a sense, what kind of industry is digital currency? This question can be answered by referring to the following picture:

Here, two concepts are mainly discussed: 1. Virtual currency, or token;

2. The relationship between legal tender and digital currency;

3. The relationship between legal digital currencies.

Traditional electronic payment institutions usually settle transactions using cash, but this method may not be particularly convenient for digital currency; some companies use bank transfers or other forms of fund purchases for services such as purchasing paper receipts or making credit card payments, which all require the involvement of third-party intermediaries. However, this is not the case for digital renminbi, because there are now relevant regulatory systems, and people can also treat digital currency as alternative assets for trading. 2. Virtual goods, such as gold as a medium or substitute? We know that in the early stages of blockchain technology development, digital renminbi is generally used for value exchange. However, in the current era of blockchain, in order to achieve true digital transformation, there must be corresponding infrastructure support to play a role. With the continuous maturity of blockchain technology and the emergence of more financial instruments in the future, the demand for digital currency will continue to increase, which is also a very realistic issue.

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