People's Daily: The cryptocurrency craze should be cooled down. Don't lose your mind just because someone got rich overnight.

Following the release of a risk warning to prevent disguised ICO (token issuance and financing) activities in early January, the China Internet Finance Association recently reminded investors again that they should be aware of the risks of overseas ICO and "virtual currency" trading platforms. In addition, it is understood that my country will take regulatory measures against overseas virtual currency trading platform websites, and the supervision of virtual currencies is still continuing to increase.

Before the regulation "cooled down" it, the popularity of virtual currencies represented by Bitcoin was unstoppable. Take Bitcoin as an example. In 2017, Bitcoin became a hot topic on the streets, and some people even believed that "speculating in stocks and real estate is not as good as speculating in cryptocurrencies." As the price of Bitcoin rises, the number of "miners" and "mines" related to it increases. Some people became millionaires overnight with the help of "speculating in cryptocurrencies" and "mining", while others became penniless in an instant. Although investors' enthusiasm for Bitcoin remains unabated, the risks and problems of speculation, high volatility, money laundering and corruption behind it have attracted great attention from regulators. In the face of the so-called investment fever, we must be more calm.

On the one hand, there are objective reasons for the "hotness" of Bitcoin. Since Satoshi Nakamoto mined the first Bitcoin block in 2009, Bitcoin has gradually entered the public eye and ushered in its "spring" in 2017. The characteristics of difficulty in acquisition and limitedness make Bitcoin have exchange value among participants, and this scarcity also makes it the object of favor for special groups and capital. However, due to the constraints of uncertain factors such as policy supervision and technological innovation, the phenomenon of Bitcoin price plummeting and soaring is very common. There have been stages where the price has soared by more than $10,000, and there have been times when the market value has lost more than 1/4 of its market value in one day. It is these characteristics that make Bitcoin the "new favorite" of speculators.

On the other hand, it is necessary to "cool down" Bitcoin. It is worth noting that although Bitcoin has the word "coin" in its name, it is not a circulating currency, and no country has yet regarded it as legal tender. In essence, Bitcoin is still just a virtual commodity, and a virtual commodity with particularly high investment risks. There is no legal basis for the establishment of various so-called "coin" trading platforms in my country, and the "crazy" Bitcoin has become a disaster area for various illegal financial activities. Due to its characteristics of being uncontrolled by the government, relatively anonymous, and difficult to track, in recent years, Bitcoin has repeatedly exposed cases of malicious transactions, zombie virus "mining" and illegal profiteering, hacker attacks have occurred frequently, and there are also a large number of pyramid schemes and illegal fundraising activities under the guise of virtual currency. Timely supervision is conducive to establishing an efficient and safe financial operation system and mechanism, and preventing financial risks and hidden dangers.

As the most representative virtual currency, the risks behind Bitcoin actually exist in most virtual currencies. However, some people still think that this is a "trend" that cannot be missed. In September last year, the People's Bank of China and seven other ministries and commissions took measures to require virtual currency exchanges to completely shut down all their trading activities in China. Since then, some people have turned to overseas platform websites to continue to participate in virtual currency transactions. At the same time, some institutions or individuals in the country are still organizing so-called currency-to-currency transactions and over-the-counter transactions, and are equipped with services such as market makers and guarantors. This is essentially a virtual currency trading venue, which is obviously inconsistent with current policy regulations.

For investors, cooling down the "Bitcoins" gives them time to think calmly. As governments around the world have paid attention to strengthening supervision in the field of virtual currencies, some overseas trading platforms have been restricted from access due to obvious compliance risks, and some may be forcibly banned by their governments. The seemingly beautiful "trend" may be a trap, and it cannot be considered a correct investment method just because some people have made a fortune through it. Investors still need to actively strengthen their risk awareness, always remain rational, and stay away from all kinds of illegal financial activities.

For enterprises, any innovation must be based on legality and compliance. Whether it is realizing the value of new currencies or devoting oneself to the application of blockchain technology, some people may get a taste of success just by relying on hot concepts, but more people will suffer. Those who only want to attract attention and make money by hyping concepts will eventually fail. Only by doing research in a down-to-earth manner, focusing on the main business or technology itself, and letting products speak for themselves, can enterprises achieve long-term development.

What is Bitcoin?

The concept of Bitcoin was first proposed by Satoshi Nakamoto in 2009. It is a P2P digital currency. Peer-to-peer transmission means that it is a decentralized payment system. Bitcoin is not issued by a specific monetary institution. It is generated through a large amount of calculation based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transactions, and uses cryptographic design to ensure the security of all aspects of currency circulation. Mining refers to the activity of striving for the right to keep accounts in the Bitcoin system and obtaining rewards.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.