Beware of losing all your money when investing in virtual currency

Since Bitcoin has been accepted by more and more people, a new era of "currency" has begun. Because most ordinary people have no ability to distinguish the different attributes of various currencies, various packaged "XX coins" have begun to appear in large numbers, and most of them have no investment value at all. This article is dedicated to newcomers who are interested in "virtual currency". When you are about to take out your bank card to invest in a certain currency, maybe you should use the method in this article to judge whether this investment will be a loss!

What is virtual currency?

Virtual currency is a very vague concept, and it is very difficult to give it an accurate definition. The extension of virtual currency is very large, almost equivalent to the boundary of legal currency. All currencies that exist in non-legal currency forms can be called virtual currency. The Q coins we all know are a kind of virtual currency, and the happy beans of Happy Landlord are also a kind of virtual currency. Airline mileage points are also a kind of virtual currency. Therefore, in the title of this article, all the "currencies" after virtual currency fall within the scope of virtual currency.

The following is a schematic diagram of the scope of various currencies, and the following article will be based on this diagram. As can be seen from the diagram, virtual currency is a very large extension, including all "currencies".

There is no "digital currency" part in the picture. This is because the concept of "digital currency" is more vague. It includes both the meaning of cryptographic currency and the meaning of dissemination through the Internet. Therefore, in less strict circumstances, digital currency and virtual currency can be treated the same. Although there are some differences here, for ordinary users, this difference is not significant.

Bitcoin

Bitcoin is an outstanding representative of virtual currencies. It was invented by Satoshi Nakamoto in 2009. In 6 years, the price of each Bitcoin has risen from 1 cent to about 400 US dollars, becoming the most important Internet currency in the world, with a current market value of 6 billion US dollars. Bitcoin is already an excellent investment product due to its scarcity, guaranteed computing power, and high acceptance. In the future, Bitcoin will continue to grow in the process of meeting the transaction needs of more people around the world.

Altcoins

Due to the success of Bitcoin, various imitating or "innovative" "coins" have begun to be developed continuously. Various virtual currencies other than Bitcoin can be called competing coins, and some people call them copy coins. However, since the word copycat has a derogatory meaning, we still use the neutral term "competitive coins". Among the competing coins, there are Litecoin and Dogecoin that copy the Bitcoin code, and there are also Ethereum, Futurecoin, BitShares, etc. issued through IPO, but there are more coins with unclear backgrounds and origins. The number of various coins that have appeared has reached 5,000-10,000, and the degree of confusion is unimaginable. Among them, at least 3,000 varieties have died.

Institutional Coins

Not all "coins" issued by institutions are competitive coins. For example, Q coins and certain points are not issued through the blockchain and are just an internal currency. However, some institutions have issued certain coins in the form of open source blockchain. These may be internal shares, or they may be trading units backed by assets. There are also pyramid scheme coins or scam coins with profit-making purposes.

Scam Coins MLM Coins

This type of currency is the dark side of virtual currency, but it cannot be ignored. Regardless of whether this type of "currency" is issued in the name of blockchain or in the name of institutional issuance, its common feature is that it is packaged as if it will appreciate significantly in the future, such as Vbao and online gold EGD. The gorgeous appearance contains a dark essence. Since the issuers of these currencies have huge interests, they will do everything they can in marketing, and even spend a lot of money to attract celebrities to endorse them. The ultimate goal of this scam currency is to swindle away tens of billions of funds and leave a mess. If you participate, there is almost no suspense that you will lose all your money.

Shitcoin

All virtual currencies that are on their way to zero are junk coins. No matter what name they are issued under or how they are issued, all investments in junk coins will eventually return to zero, and this is the final fate of 99.9% of virtual coins. So, if it is expressed more scientifically, the picture above should be like this. The range of junk coins with black circles is almost equal to the range of virtual coins:

in conclusion

1. Virtual currency is a vague and broad concept, and the concept of virtual currency does not constitute any investment value.

2. Only a very small number of virtual currencies have investment value, and the vast majority are on the road to zero.

3. Even products that have been traded on certain "trading platforms" may still be scam coins with hidden tricks, and some platforms have even unscrupulously participated in fraud and market manipulation.

4. For any currency issued in the name of an institution or company, unless you are very familiar with the issuance status of this company, do not invest easily. The RMB issued by the central bank is shrinking. How can you still believe that there will be a company giving you money for free?

5. Since scam coins and pyramid scheme coins are motivated by huge profits, they are marketed more vigorously, resulting in the vast majority of novice users initially coming into contact with virtual currencies that are basically worthless scam coins or pyramid scheme coins.

6. The market value ranking of virtual currencies is http://coinmarketcap.com/ (you need to use a VPN. If you don’t know how to use a VPN, don’t invest in virtual currencies). If you have to choose an investment, at least this type of investment should be in this market value list. Any "virtual currency" that is not in this market value list is worthy of suspicion.

The above words still cannot stop some newbies from investing in worthless virtual currencies like moths to a flame, just because of the dream of getting rich overnight and their greedy nature.