Japan media: Japan's virtual currency investment is becoming a crazy gamble.


Japan media: Japan's virtual currency investment is becoming a crazy gamble.

BEIJING, Sept. 13 (Xinhua Overseas Chinese News) said that the survey by the International Bank of Finals (BIS) showed that more than 3.5 million Japanese had invested in virtual currencies. However, the newspaper commented that Japan, known as a "virtual currency power," is actually accumulating a variety of risks.   

The excerpts are as follows:

By the end of 2017, 40% of the total global bitcoin transactions were completed by Japanese investors. Most Japanese investors, mostly men between the ages of 30 and 40, lack not only financial knowledge, but many even borrow money to invest.

These investors believe that the prices of virtual currencies will continue to rise, replacing existing currencies as the world's currency in the future. In 2017, the Japanese government endorsed the idea of a virtual currency as a means of accounting, giving more footnote to their ideas.

However, the virtual currency is still a long way from real maturity, there is a huge risk of rushing into the market.

First of all, the stability of the virtual currency is so worrying that it will be difficult to become a currency in the short term. Under the background of continuous integration of Finance and IT, virtual currency arises at the historic moment. Tokyo, as an international financial centre, has also been greatly upgraded by its openness to virtual currencies. However, the current virtual currency is unlikely to become currency. Because the basic function of currency is value stability, just like a ruler.

However, the volatility of virtual currency is quite alarming. In January, a Japanese real estate company keen on venture capital sold a property for 547 bitcoins. On the day of sale, the price of 547 bitcoins is equivalent to 670 million yen. But in just 12 days, the price of these bitcoins depreciated to 450 million yen and evaporated 33%. How can the virtual currency, which fluctuates so much, be used as currency? In addition, virtual money, as a means of money laundering, is favored by criminal organizations and faces many difficulties in legitimate supervision.

In 2010, the price of a bitcoin was less than a shilling, and by the end of 2017 it had soared to $20,000, a 2 million-fold increase in seven years.

Moreover, the output of virtual currency needs a lot of energy. Statistics from the International Final Accounts Bank show that the world consumes more electricity than Switzerland consumes in a year just by mining bitcoins. Statistics from Morgan Stanley show that each bitcoin wastes more than $8,600 in energy, such as electricity, which can cause serious environmental problems.

At the same time, computer processing capability is also a big problem. The use of virtual currency needs to constantly add tracks and record large amounts of data. And computer hard disk that stores data needs upgrading. At present, computer hard disk allocation has begun to approach 180TB, still unable to meet the storage needs of relevant data.

If supermarket chains and convenience stores in the United States are allowed to pay in virtual money, the speed of computer connectivity between them will be a big problem. According to the calculation, even according to the existing data volume, the processing of a virtual currency final accounts will also take 78 minutes, simply can not meet the needs of consumers'quick final accounts.

It is not difficult to see that virtual money does not yet have any characteristics as a general currency, to be accepted by the public, everyone use, is still far away. At this stage, the virtual currency investment is close to crazy speculation and speculation. Investors from all over the world need to guard against risks and be cautious.


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