Virtual Currency Research, The Possibility Of Impact On The Country's Financial Market

With the rapid development of net economy recently, more and more internet operators have issued its own virtual currencies to purchase varies of services and virtual commodities which are provided by the company itself. Initially, the scope in which the virtual currencies can be used is confined to the internet, as the certification increases, some virtual currencies can be used to buy other merchandises on line. The model which is built on extensive cooperation of other corporations and the public certification brings the virtual currencies take on some modalities of real ones.This paper would use theory, letter depiction and analytical model to analyze whether virtual currencies will do some impingement to Chinese financial market, especially whether the slathering of virtual currencies can result in inflation.First, the paper introduces the definition of virtual currencies, the recent using status both inside China and abroad, also the reason that the virtual currencies generated. Then, it introduces theory of virtual currencies impingement to financial markets. This part is mainly to analyze the possibility that virtual currencies can do impingement to financial market using multiplier effect, inflation theory and exchange mechanism. And then build virtual currencies exchange model. The paper Employs foreign exchange theory and models to compare the relation between virtual currencies and real ones, designing models both under convertible and unconvertible condition to analyze the impingement the virtual currencies do to the financial markets. Then point out some flaws that the virtual currencies have and advances corresponding solving strategies.With the study, this paper draw the inclusion that, under the hypothesis of asymmetric information and rational person, the impingement that the virtual currencies bring is confined to net economy not real world financial markets. But because of the immanent flaws of hypothesis, the proper regularity is needed.