Internet Financial Evolution: The Study Of Bitcoin

In the paper, Bitcoin evolution issue is studied in the background of the rise of Internet finance. As a emerging and fast growing economic phenomenon, Internet finance will have a profound impact on the economy. Bitcoin is a representative and particular form of Internet finance. In accordance with the organizational ecology evolution paradigms, this paper established the Internet Finance "variation-selection-reservations" evolutionary framework. The framework was applied to the study of the evolution of Bitcoin. The variation, selection and retention processes of Bitcoin were analyzed to afford the corresponding conclusions.Based on Organizational Ecology evolution of Internet financial framework is the structure of the paper. Internet finance is organizational and financial innovation caused by the technical innovation, which follows the evolutionary route of "Variation-Selection-Retention". From the perspective of variation mechanism, it is a spontaneous response of internet technology to financial repression. From the perspective of the selection mechanism, its diffusion is the result of market choice under the economic characteristics of the Internet. From the perspective of the retention mechanism, it is faced with the problem of how to supervise. The internet financial supervision should be prudent, functional and moderate.The evolution framework is applied to the Bitcoin study. "variations" in evolution refers to how the new organizational forms emerge. Process variation is how Bitcoin generated. in accordance with the Order of "background-design-Accept", the third chapter reviews Bitcoin generation process. The paper explains its economic background, technological heritage, operation mechanism, design objectives, special properties. It describes how the government and the public to evaluate and use Bitcoins. On analysis of essence the currency, the question of "Bitcoin is a currency or not?" is answered. With establishment of a more efficient credit system, Bitcoin provides a clearing system for a particular transaction, and assumes the functions of money. However, it is not the solution for the future monetary and economic crisis.Selection process refers to how Bitcoin diffusion. Bitcoin is an emerging economic phenomenon, which is developing rapidly and full of controversy. It is based on technological innovation, but the purpose is to create a new monetary system. Within the framework of new institutional economics, this article explores the reasons for the diffusion of Bitcoin and institutional competitiveness. The evolutionary game model shows microscopic diffusion power, such as trading income, gains and psychological appreciation utility, affects the rate of diffusion. And such relationship is a verified by the empirical analysis based on the public data of "blockchain.info.Retention process refers to how Bitcoin legalization. The fifth chapter summarizes the Bitcoin challenges to existing regulatory system, as well as regulatory measures already taken by governments. Game model for this interaction is established, and is verified by computer simulation. Finally,the paper presents regulatory proposals. The Government should face up Bitcoin property, financial and monetary, and place it under the regulation. Regulators should fight against money laundering and crime pay based on the Bitcoin, strengthen technical monitoring capabilities, and develop its good application.