With Internet development and application develop constantly ,more and more virtual currency appears ,such as Q coin ,Baidu coin ,Bitcoin and so on .Their using range exceeds virtual goods category and may transfer from virtual world to realistic world .Among all virtual currency ,bitcoin is the top .With its rapid development and wide effect ,Peopleís Bank of China has released a notice about preventing bitcoin risk on December ,2013,pointing out bitcoin is a specific virtual goods rather than currency in real sense .On February ,2014, The Financial Services Authority in Newyork said it would work out virtual currency supervision framework and give license to virtual currency companies .Meanwhile ,Britain and Germany also publish some rules to supervise bitcoin .Poeple may ask ,what is currency essence ?Does bitcoin own currency essence ?
Currency essence :
As we know ,the source of currency is the currency demand led by goods exchange .The process is so long .On different places or different developing stage ,currency morphogenesis is different .But whether its morphogenesis changes ,currency is universal equivalence .As universal equivalence ,currency owns five functions .But there are only two basic functions ,measure of value and medium of circulation .The fundamental is measure of value .The basic function and currency itself cant be divided .Whether any goods ,once it is currency ,it must own two basic functions .Itís the two basic functions that form currency essence .And its basic meaning is value standard .
people are willing to pay and accept on goods exchange with currency .It includes two meaning ,one is paying ,goods buyers are willing to exchange the goods with currency .Another one is accepting ,sellers are glad to get the paid (currency )and believe it can be used to exchange other goods .On the currency system today ,currency doesnít own using value .But why people need currency is that it can be exchanged into goods and service .
Is currency essence .To any substance ,whether visible or invisible ,once gaining the characteristic ,it may own currency essence .Meanwhile ,if decreases ,its currency essence decreases .Now all currency are ruled by the law .Nonetheless ,currency liquidity still depends on the confidence from the public .Even legal currency ,its currency essence still depends on its .
Currency essence is ,it will not change as currency morphogenesis .With internet develops ,some newly financial products appear and develop into currency substitute .But currency essence doesnít change .Whether early physical goods currency or later trust currency even the digital currency ,their currency essence is .Why currency substitute is able to exert currency function is that it owns .More currency substitute will appear in the future ,but whether currency morphogenesis changes ,its essence will not change .
Remaks: Due to language difference, sometimes people out of China canít know what happened in China quickly. so we are here to make effort to change little, we will translate 3-4 bitcoin news in China to English everyday to help people out of China know what happened and what people thinks about bitcoin in China, If somewhere translate not that good, pls PM us so that we can correct it.