The price of “Digital COINS” such as bitcoin has plunged by two-thirds in a week, as a new coronavirus epidemic hits. Everyone should realize that they cannot become “Digital Gold”, nor can they become strong currencies or safe haven assets. They should get rid of the illusion of various “Digital Currencies” completely and have a clear and accurate understanding of currencies.
Financial markets were spooked by the unexpected speed and severity of the new coronavirus outbreak, which spread around the world, particularly in the United States and Europe. In such a time of crisis, a lot of people frenzy and extreme beliefs, believe that will replace the existing national currencies , become the era of digital economy subversion and transcend national sovereigntya new type of “digital currency”, and as a “digital gold”, will be a very important value and safe-haven currency, its market price does not rise, it appears more severe drop, the biggest drop in 24 hours more than 50%, the lowest fell to $3915, reached the lowest since March 2019. This not only makes a lot of people clamoring for “new half” may lead to price rise of the so-called “half prices” will fail, the market price is staged in advance “by half price”, price plunge two-thirds, within a week the etheric COINS and other digital currency also tumbled, causing a large number of relevant contracts subsequently broke.
In fact, bitcoin, while highly mimicking the mechanics of gold, is not real gold at all. It is only digital “virtual gold” or “virtual assets.” At the same time, all this will be total and periodic production set beforehand, and periodic production on a regular basis by half, there is no room for control design, makes it hard for the currency in circulation and tradable correspond to the size of the social wealth, at the same time, the lack of legal protection of state sovereignty and also lose guaranteed social wealth using COINS, is bound to make its currency is difficult to maintain the basic stability, completely violated the currency as the essence of value measurement and its development and progress of basic logic, can’t replace sovereign currency as the real currency, only is a special kind of virtual assets, Or a business or community currency that can only be used within a certain range. They may become the subject of speculation, but their prices will inevitably fluctuate, with great financial risks. Even if the block chain technology is used to launch a “stable currency” linked to a legal currency equivalent, the same is true, can only be a token. The design of structural linkage with a variety of legal tender currencies (such as Libra) is designed to create a super-sovereign currency, and it defies monetary logic.
