Research On The Operation And Price Mechanism Of Bitcoin

At present,there are many researches on various financial products in domestic academic circles,but there is less research on emerging products such as bitcoin.Existing research tends to focus on the beginning of bitcoin,from the perspective of introducing and understanding a new thing.However,the current COINS have already from the beginning of the birth of an ideal digital concept has become a hot commodity,the trading volume and price has produced very big change.This article through to the currency of the principle of operation,analyzes the typical features of the currency,compared the similarities and differences of credit currency and the currency,from the Angle of economics,analyzes the running mechanism of the currency,monetary properties and price mechanism.This paper considers:First of all,as a major innovation in the history of the development of currency,the currency used in the design of a series of innovative ideas and the way is worthy of reference,for example,a challenge to the current credit notes,exploration of the single currency,as well as the application of block chain technology.Secondly,due to the decentralized currency will lead to illegal trading behavior cannot be regulated,the amount of cap will lead people to collect COINS instead of using COINS for all kinds of payments,and the same benefits from a variety of fake currency competition and so on a series of reasons,the currency in the future will not be able to well exercise the basic function of money,can't become the next generation of currency.Finally,the supply of bitcoins will be affected by the cost of bitcoin mining and the attitude of governments to the mining behavior of bitcoin.Demand for bitcoins can be divided into speculative demand,transaction demand,and cautious demand.In addition,demand will be affected by the government's policy on bitcoin transactions.When supply and demand reach equilibrium,the price of bitcoin is determined.Relevant departments should continue to maintain the high pressure regulation of bitcoin,strictly check the media hype and protect the interests of investors.