Virtual currency comes into being to meet the needs of the digital era. It has the functions of traditional currency and features different from traditional currency.
The advantages of virtual currency include convenient access, optimization of resource allocation, combination of production factors, activation of savings function and supplementary macro-control means, etc. The booming development of virtual currency is inseparable from the first two advantages.
Access to virtual currency is convenient. Users can top up their personal accounts by dialing the voice phone, or purchase virtual cards through bank cards to complete the currency recharge. We can learn more through Doge mama review.
In addition, virtual currency can optimize resource allocation. All kinds of resources in the network are very rich, among which virtual products and services meet the different needs of all kinds of people. At the beginning of development, the main payment method was postal remittance, but the cost was too high and too cumbersome. If the bank card is used for payment, the bank card information may be leaked, causing unexpected risks. In this context, Paypal, for example, has solved this difficulty by implementing high security while being convenient. Furthermore, its application scope is becoming wider and wider, and it has become a general equivalent in virtual transactions, a bridge between virtual wealth and real wealth, which is more conducive to realize the optimal allocation of resources.
Virtual currency makes people’s lives more convenient and richer, but at the same time, it also causes damage to the existing real currency and real economy, and also has an impact on social ethics.
Virtual currency is easy to transfer over long distances and has strong anonymity. Online transactions are difficult to monitor, collect evidence and punish. Therefore, its money laundering cost is lower than many other money laundering methods, and it is easy to be used by criminals for money laundering. Some online game platforms use virtual currency instead of regular currency for gambling, which acts as “chips” in casinos and is exchanged for cash after “legal” use. The prevalence of such activities is bound to bring a bad social atmosphere, seriously affect the healthy growth of teenagers and people’s normal life, thus disrupting the social order.
At present, virtual currency issuers do not arrange corresponding redemption mechanisms for virtual currency. The surplus virtual currency in the hands of netizens can only be left idle, or sold or exchanged through various trading platforms. This has led to the formation and flourishing of an underground market for virtual currencies.
Moreover, it is difficult to effectively protect the legitimate rights and interests of netizens. Due to the absence of virtual currency management at present, it is completely in a laissez-faire state, and the legitimate rights and interests of the majority of Internet users are difficult to be effectively guaranteed. Virtual currencies are also prone to inflation.
Virtual currency is the major trend in the future. It is inevitable that virtual economy will surpass real economy and virtual currency will replace real currency. It is difficult and challenging to study the emergence and development of such emerging things. But before this general trend comes, I think we have to be prepared to establish and improve various regulatory mechanisms so that it can bring leapfrog progress to our society later.