The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Is Bitcoin a currency? Is Bitcoin a bubble? Bitcoin has the characteristics of not relying on a specific currency issuing institution, relying on specific calculations, P2P point-to-point structure, distributed database records and cryptography, etc. Some people also believe that Bitcoin is a decentralized, non-universal global payable electronic cryptocurrency. What's more, Bitcoin is directly regarded as a virtual commodity rather than a currency. From different perspectives, Bitcoin has different definitions, but is it a digital currency, a virtual currency, or a virtual commodity?

Definition of currency

The so-called currency is a contract between the owner and the market on the right of exchange. It is fundamentally an agreement between the owners. Although it has different forms of expression with the development and progress of society, it is inseparable from keywords such as transaction, value, payment, and accounting.

In other words, as long as it is tradable, has a certain value, is payable and can be accounted for, it can be considered a currency. At present, Bitcoin already has a circulation channel and can realize payment and transaction, so Bitcoin already has the main characteristics of currency.

Definition of electronic currency

Electronic currency is actually the electronic form of currency. Physical currency is converted into a string with encrypted content through electronicization. All transactions and payments only need to change the information in the database.

However, electronic currency still relies on the mainstream currency currently circulating in the world, but in a different form. Bitcoin is based on blockchain, and its underlying organization is a decentralized distributed database. Therefore, it meets the definition of electronic currency, but it is more special.

Definition of digital currency

Digital currency, as the name suggests, is a digital form of currency. Digital currency is divided into digital gold coins and cryptographic currencies, both of which can be used for real goods and services transactions.

Among them, digital gold currency is a form of electronic currency named after the weight of gold, which is gold circulated in digital form.

And digital currency, which represents Bitcoin, Litecoin and other electronic currencies that rely on verification and cryptographic technology to create, issue and circulate, it can be seen that Bitcoin can be regarded as a kind of digital currency.

Definition of virtual currency

The definition of virtual currency is that it is a currency that can be used to purchase goods and services in a specific community in a virtual space, and it has the characteristics of a transaction medium and a unit of account.

But it is limited to specific environments, such as games or social platforms, the most typical of which is Q coins. Therefore, the circulation scope of virtual currency is limited, it is not a real form of currency, and naturally does not meet the characteristics of Bitcoin.

Definition of Cryptocurrency

Cryptocurrency is a transaction medium that uses cryptographic principles to ensure transaction security and control the creation of transaction units. At the same time, cryptocurrencies are a type of digital currency, and the most typical example is Bitcoin. Therefore, Bitcoin, which is inseparable from encryption, naturally belongs to the category of cryptocurrencies.

In summary, Bitcoin is both digital currency, electronic currency, and cryptocurrencies, but it is not a virtual currency, and it has already met the characteristics of circulating currency. From my understanding, Bitcoin is indeed a type of currency, and it does not rely on any currency issuing agency. It can realize P2P point-to-point transactions and payments, and is an extremely advanced form of currency.

But now the scope of use and application of Bitcoin are very limited, and it can be considered as a special conceptual currency. Because, although Bitcoin does not require a specific currency issuing agency and international supervision due to its decentralized characteristics, it is obviously not enough to rely on idealization to truly realize circulation and transactions.

Is Bitcoin a bubble?

The rapid rise in prices does not constitute a bubble. Artificial overvaluation will lead to a sudden downward correction, which will constitute a bubble. The fluctuation of Bitcoin prices based on the choices of individual behavior of thousands of market participants is the result of market-determined prices. Emotionally, the reasons for price changes include: loss of confidence in Bitcoin, huge differences between price and value that are not based on the fundamentals of Bitcoin economy, more and more news reports that stimulate speculative demand, fear of uncertainty, and outdated irrational prosperity and greed.

Now many countries, including China, still do not recognize Bitcoin. It still has a long way to go before it can truly achieve global circulation and become a circulating currency. At present, various "speculation coins" on the Internet are all branches of Bitcoin, which are illusions caused by speculators' speculation, but its value is still difficult to estimate, and there is no possibility of value preservation.