Research On The Nature And Risks Of Encrypted Digital Currency

With the advent of new digital currencies based on block chain bottom technology since 2009,such as Bitcoin,Wright coin and other Crypto digital currencies,there have been frequent occurrences of such currencies as payment means in the field of global transaction payment,and more and more businesses accept Crypto currencies.It seems that a new form of currency is coming out;but at the same time,all kinds of Crypto digital currencies are emerging.The sharp rise and fall of currency prices and the strict supervision of some countries over such currencies have made people doubtful and delayed in their understanding of the nature of the currency,and the related issues of the nature of the currency also need to be clarified urgently.Currently,Crypto digital currency is divided into two categories according to its block chain or intelligent contract technology:Crypto digital currency represented by bitcoin and Crypto digital token based on intelligent contract.For these two different types of "Crypto digital currency",the academic mainstream views from the traditional perspective of the commodity nature of money,on the one hand debate the nature of Crypto digital currency such as Bitcoin,on the other hand,consistently confirm that Crypto digital tokens have the securities or debt attributes.However,the evidences of sociology,history and other disciplines show that the commodity nature of money in traditional theory is contrary to historical facts,and therefore is not suitable for interpreting the nature and risks of Crypto digital currency.On the other hand,it is worth noting that relevant historical evidence has proved that money is essentially a certificate of debt relationship based on national sovereignty,not just an item.Therefore,the "Perspective of the Debt Nature of Money" is the "right way" to interpret the nature of money and the nature of Crypto digital currency and the related risks.Based on this,this paper analyzes the essential attributes of two types of Crypto digital currency based on in-depth interpretation of the nature of currency debt and national attributes.The paper begins with a detailed introduction to the technical principles and market status of Crypto digital currencies in the second part,thus clarifying the technical and practical reasons for which they are regarded as "currency"by some views;these reasons include the physical characteristics of similar precious metals(decentralization,fixed amount,etc.),being accepted by some merchants and the government as payment instruments,being used in illegal transactions for listing price,etc.Meanwhile,the article provides an in-depth explanation of the theoretical perspective of analysis of the nature of cryptocurrency and risk-"the Perspective of the Debt Nature of Money",and through the combing of historical facts and related theories,finds that money originates from the representation and circulation of debt,and has historically been the manifestation of state debt,and the state taxation mechanism plays a fundamental role in the generation and circulation of money;in addition,the currency presents a pyramid-like hierarchical structure because of the different ways in which its debt relationship is concluded and its reliability of payment.Therefore,it is logical to further analyze the nature and risks of Crypto digital currency.Comparing the two types of Crypto digital currency with the national currency in the fourth part,this paper concludes that for an Crypto digital currency such as Bitcoin,it is not essentially a manifestation of any debt,and therefore is not a currency,but at best it is a commodity that is priced in the national currency and is temporarily used to facilitate the medium;and if such goods are used as national currency,the national monetary sovereignty will be weakened and the expansion of the credit order in the entire economic system will be restricted;and for the Crypto digital tokens based on smart contracts,it will undoubtedly have typical low-level debts attributes,and there are hidden risks such as ambiguous rights,irrational creation of debt and debt chain expansion,as well as civil"dollarization".