Youth economics said

  virtual currency supervision overweight "mining" may become history

  With the tightening of domestic supervision, the "mining" of virtual currencies such as Bitcoin may become history in China. Most of the "miners" will move to other countries, but there are still some "miners" that may go underground from then on.

And some young people who lost money in the "leek feast" are still expecting the myth of getting rich to happen to them.


  "I originally wanted to buy the bottom, but I didn't expect to (be) ransacked my home." In several Wechat groups of "coin speculation", Liu Jun (pseudonym) saw a "leek feast" with his own eyes in the past few days.

As a self-media person, he has been concerned about the virtual currency market for a long time, and has also invested some funds in his spare time to "speculate coins".

In his opinion, today's virtual currency market has long lost the atmosphere that attracted itself at the beginning, but is full of lies and "air coins."

  On the evening of May 23, virtual currencies collapsed again. Bitcoin fell by more than 16%, and Litecoin and Ethereum also fell a lot.

A month ago, Bitcoin was still more than 60,000 U.S. dollars, and it fell to more than 30,000 U.S. dollars in a blink of an eye.

A few days have passed since the last plunge.

  On May 19, the virtual currency market also collapsed almost across the board. Bitcoin's intraday decline was as high as 30%, and once fell below $30,000. Dogecoin, which has soared in price this year, has dropped nearly 55% during the day. Binance, Huobi, OKEx The platform currencies of the three major exchanges also plummeted by more than 40%.

As a result, a large number of traders "exploded their positions" and lost more than 46 billion U.S. dollars.

  The unprecedented stringency of regulatory policies is an important reason for the plummet of virtual currencies across the board.

On May 18, China Internet Finance Association, China Banking Association, and China Payment and Clearing Association jointly issued an announcement to prevent the risk of virtual currency transaction speculation.

On May 21st, the State Council’s Financial Stability and Development Committee meeting clearly proposed to crack down on Bitcoin mining and trading.

  Industry insiders pointed out that with the tightening of domestic supervision, the "mining" of virtual currencies such as Bitcoin may become history in China. Most of the "miners" will move to other countries, but there are still some "miners" that may switch from now on. Go underground.

And some young people who lost money in the "leek feast" are still expecting the myth of getting rich to happen to them.

"One sentence can control the trend of currency prices"

  In the virtual currency world, the value of Bitcoin and Ethereum are well-recognized, and the market value and liquidity are also at the forefront, followed by various small currencies.

Since the beginning of the year, DOGE Coin has sprung up. Prior to this, the price of this small currency that was originally a programmer's joke has not fluctuated significantly.

  The transformation happened this year.

In early February, Tesla founder Elon Musk posted on social media several times to support Dogecoin, which led to a 60% increase in the price of Dogecoin.

Since the beginning of this year, the price of Dogecoin has repeatedly hit new highs, rising by more than 200 times within a few months, and its market value once reached approximately US$92 billion.

  The surge of Dogecoin has stimulated more "innovation" of people in the currency circle, and currencies such as "Shiba Inu Coin", "Pig Coin", "Pikachu Coin" and "Turtle Coin" have also begun to appear, and the currency circle is about to become "innovation". Virtual Zoo".

But in the eyes of industry insiders, these without exception are "air coins" with no actual value, and there are often "bookmakers" behind them.

  Liu Jun believes that judging from the sharp rise and fall of market conditions, institutions represented by Musk are the winners behind the virtual currency.

He gave an example: When Musk declared that he could use Bitcoin to buy Tesla, Bitcoin went up by $1,000; when he announced that Tesla would suspend the use of Bitcoin for payment, the currency price dropped by 10%.

  Liu Jun once regarded Musk as an idol, but during this time he changed his mind: "It is him who takes the lead in bad news, and it is him who takes the lead in shouting more. One sentence can control the trend of currency prices." As an authority, he is now I only hope that institutions and capital can "take the lead in pulling orders" and appropriately maintain the prices of mainstream tokens such as Bitcoin.

  William, a researcher at OKEx Research Institute of Ouyi, analyzed that the "5.19 coin market crash" was not only because the virtual currency market had accumulated a large number of bubbles, but also because the negative remarks of Musk and others had shaken the market's confidence in the price of Bitcoin.

  At the beginning of February this year, the price of Bitcoin has been hovering at around $30,000 per coin. However, as Musk announced that Tesla had bought Bitcoin and frequently called out orders, market sentiment was driven up again, and the unit price of Bitcoin rose directly to Around 60,000 US dollars.

But on the eve of "May 19", Musk frequently made remarks against Bitcoin, including Tesla's stop accepting Bitcoin payments, which shook the confidence of the market.

William believes that in the past few weeks, most of the animal coins sought after by the market are completely manifestations of the market's irrational behavior, reflecting the huge bubble in the market.

The "access channels" of funds are blocked, and "mining" may become history in China

  Regarding the escalation of the hype in the virtual currency market, the regulatory authorities also took action last week.

On May 18, the China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly issued an announcement requiring member institutions not to engage in virtual currency exchange and other related financial services, and resolutely resist illegal financial activities related to virtual currencies. Currency trading provides services such as account and payment settlement, publicity and display.

  Insiders pointed out that the above-mentioned regulatory measures are equivalent to blocking the withdrawal channels of the renminbi and virtual currencies, which can protect many novice investors.

William also believes that this is equivalent to blocking the "access channel" between virtual currency and legal currency. The virtual currency invested by users cannot be realized, which is a fatal blow to new users.

  Guangzhou investor Xiao Sun wanted to continue to buy virtual currency through virtual currency trading platforms such as Huobi, but was stopped during the payment link.

"Alipay reminded me of a dangerous transaction, so I just refused to let me pay. I feel a little bit imaginary." In his impression, this happened very rarely, and considering the recent boom and fall of the currency market, "I didn't buy it at all." .

  Xiao Sa, a partner of Beijing Dacheng Law Firm and director of the Bank of China Law Research Association, said that the regulatory authorities have never relaxed the supervision of encrypted digital tokens such as Bitcoin, especially the meeting of the State Council’s Financial Stability and Development Committee, which clearly stated that “to crack down on Bitcoin mining? "Mining and transaction behavior", which means that the "mining" behavior of Bitcoin mining and other encrypted tokens has been determined to be history in our country.

  Some places have also taken actions to clean up and shut down virtual currency "mining" projects.

On May 18, the Inner Mongolia Autonomous Region Energy Consumption Dual Control Emergency Command Office issued the "Announcement on the Establishment of a Reporting Platform for Virtual Currency "Mining" Enterprises", which fully accepted complaints and reports on virtual currency "mining" companies, mainly involving four categories Enterprises: virtual currency "mining" companies; virtual currency "mining" companies that pretend to be data centers that enjoy preferential policies on taxation, land, and electricity prices; companies that provide site leasing services for companies engaged in virtual currency "mining"; Enterprises that obtain electricity supply through illegal means and engage in virtual currency "mining" business.

  The "mining pool" composed of computers and graphics cards is the upstream industry of the virtual currency industry.

In April this year, scholars from the Chinese Academy of Sciences and Tsinghua University published the paper "Policy Assessment of Carbon Emissions and Sustainability of Bitcoin Blockchain Operation in China", which estimated that mining pools located in China accounted for about 78% of the global computing power. .

  Such a large number of "mining" equipment not only drove the price of graphics cards, hard drives and other products to skyrocket, but also consumed a lot of electricity.

According to the analysis of the above-mentioned scholars, if there is no policy intervention, the annual energy consumption of China's Bitcoin blockchain is expected to reach a peak of 296.59 TWh in 2024, resulting in 130.5 million metric tons of carbon emissions, accounting for about 5.41% of China's carbon emissions from power generation. .

This scale exceeds the total annual greenhouse gas emissions of the Czech Republic and Qatar.

  Some "mining" people said that the above-mentioned policy introduced by Inner Mongolia is a signal that mine owners originally distributed in Sichuan, Xinjiang, Inner Mongolia and other places will further move overseas.

At present, many mine owners have released investment information for overseas mines in Africa, West Asia, Eastern Europe and other regions.

Global regulation is becoming more stringent, and there are still people who want to "enter"

  In fact, strict supervision of virtual currencies is the consensus of many regulatory agencies around the world.

  In the United States, where virtual currency transactions are most active, a report recently released by the Ministry of Finance of the country pointed out that virtual currency facilitates illegal activities, including tax evasion, for which they have formulated a new financial account reporting system.

In the future, virtual currency and encrypted asset trading accounts, as well as payment service accounts that accept virtual currencies, will be included in the scope of government monitoring. Crypto-asset-related transactions with a market value of more than $10,000 must be reported to the U.S. Internal Revenue Service.

  Singapore, South Korea, Japan and other places have introduced relevant industry regulations and policies, such as investor thresholds, exchange licenses, and KYC identification (real-name authentication mechanism).

India is prepared to directly prohibit the public from trading and holding encrypted digital currencies.

William analyzed that all countries in the world have recognized the risks of the virtual currency market, and it is expected that relevant regulatory policies will be introduced one after another, and the virtual currency market will be under certain pressure and usher in a sharp drop.

  The government of the Hong Kong Special Administrative Region proposes in its policy document that virtual asset service providers should be subject to compliance supervision of anti-money laundering and terrorist financing.

The Hong Kong Special Administrative Region Government also plans to establish a mandatory licensing system for virtual currency exchanges before the end of 2022 and submit a draft law revision to the Hong Kong Legislative Council.

This means that in the future, only licensed exchanges can legally provide virtual currency trading services in Hong Kong.

  Xiao Sa believes that strict supervision is now a general consensus, but there are still many challenges.

For example, it is difficult to use technology to determine the objects engaged in speculation, mining, etc., and to carry out precise supervision and control. The transaction of virtual currency has disintermediation, denationalization, non-face, anonymity, and transaction speed. And other characteristics, there is a certain regulatory vacuum.

  In addition, the scope of supervision is wider and more difficult.

In recent years, the currency circle has been hot, and there are many miners and speculators. Not only can they use physical mining machines to mine, but also use cloud computing power for mining. There are both large-scale mining farms and small-scale individuals. , Group mining, for small-scale, small-scale mining, it is difficult to supervise.

Moreover, it is difficult to determine the effect of supervision. Some institutions exist in China only for their technology companies, while the main body of the institutions is located overseas, and it is difficult to form effective supervision on them, or they are outside the scope of supervision of our country, but they have already caused damage to our country’s financial security. Threatened.

  However, the strengthening of supervision in various countries has not been able to stop the excitement of some people.

Liu Jun noticed that a few days after the currency market plummeted, many people in the currency circle were arguing whether to "buy the bottom" or "leave the market."

Some "old people in the currency circle" are releasing signals of "buying the bottom", and some young people are still "sticking to their beliefs", evading supervision by buying cloud computing power and transferring "mining farms", and some people repost positive bits in the circle of friends. The currency news attempts to prove that Bitcoin is a more effective store of value asset than the U.S. dollar.

  After a long time in the currency circle, Liu Jun also gradually understood a truth: a plunge may only be the beginning of the next hype, and there may be a group of young people preparing to "enter".

"As long as the myth of making wealth remains, this kind of thing may not stop."

  China Youth Daily and China Youth Daily reporter Wang Lin Source: China Youth Daily