The Research On The Nature Of Bitcoin And Its Regulation

Bitcoin has been active in the field of currency since its birth due to the characters accompanied with decentralization.Meanwhile,lack of proper definition and regulation has brought a series of crimes such as the purchase and sale of illegal commodities,money laundering and terrorism financing,along with a shock to the flat money and current monetary system.This thesis will discuss the nature of bitcoin from analyzing its fundamental characters to proposing a possible regulatory future.The Introduction will first raise the issue and bring up to the nature of bitcoin,the key point of this thesis.Chapter One will introduce bitcoin in a whole from its development,its operation,to its legal dilemma.Chapter Two will discuss the four fundamental characters of bitcoin,being decentralization,anonymity,super-sovereign and anti-inflation,which leads to the nature of bitcoin as in the next chapter.Chapter Three will focus on the nature of bitcoin and its regulation,the main part of this thesis.First it will start with two theories,one being recognizing bitcoin as money and the other not.Then it will discuss the nature of bitcoin from three perspectives,being historical,legal and economical.From the historical perspective,bitcoin seems extremely similar to gold;from the legal perspective,bitcoin is a type of virtual currency;from the economical perspective,bitcoin can be fitted in the definition of money.After it will prove and conclude that bitcoin shall be regarded as a new type of money because it acts as money as an exchange medium,a value standard,a payment method,a depository measure and most important,a universal equivalent on the internet.Finally it will propose that the legal nature of bitcoin shall be defined,home and abroad regulatory system shall be built and the current monetary system shall be improved.Chapter Four will sum up the thesis,restressing the inevitability of bitcoin and the necessity of its regulation.