The number of bitcoins issued is halved roughly every four years.
In the future this number of releases will be small.

Why not consider a fixed low interest rate mechanism to ensure that Bitcoin is more suitable for current economic activity?
For example, if you hold 1 bitcoin in an address, you will be rewarded 0.02 bitcoin after holding it for 1 year.
Interest is calculated and paid every year or before you will pay to another address.

Government issues Policy Statement on development of Virtual Assets in Hong Kong

Hong Kong wants to compete with Singapore for a fintech hub, which will prompt the government to accept cryptocurrencies as soon as possible.

Well, yes. Thank you.

I seem to have tacitly assumed that on-chain transactions are absolutely safe. Maybe in reality, but not in theory.

I don't think transactions via Lightning have the same security risks as traditional on-chain, so there's no direct comparison.

After the Lightning Network is established, the number of transactions before uploading to the chain for confirmation cannot be estimated.

And staring at the maximum transaction throughput that Bitcoin can support doesn't seem to make much sense.
I heard that Bitcoin is positioned as digital gold......

PS: Forgive my English need to rely on Google translation, I was not very accurate when I checked the words.

Somewhat ironically, in China, not only those websites, but even my visit to this website requires a VPN.
But despite China's many restrictions, I still feel it is necessary.

Because I am a citizen in higher education, I can clearly discern ideological issues.
But students receiving compulsory education in China are vulnerable to the so-called freedom and democracy of the Western world.
We have been deeply aware of the root cause of the unrest in Hong Kong, which started from the infiltration of young people.

I always feel that it is 2022, and no one will believe in the so-called democracy and freedom on this planet, right?

I don't quite understand the status quo.
May I ask, can the Lightning Network running on Bitcoin guarantee absolute security?

Including traditional on-chain transactions, Segregated Witness transactions, and the second layer of the Lightning Network.
Or maybe there are new ways of allowing transactions that I don't know yet.

The unit is how many transactions per second.
Has anyone made an estimate?

I heard that the U.S. has a complicated tax system.

Large transfers between private individuals in China in earlier years were not even censored. I heard that it will be reviewed recently, but I have never heard of filing tax returns with the tax office.

When bitcoin was in circulation five years ago, no Chinese paid taxes to the government. Banning Bitcoin will not result in a drastic reduction in taxes.

Some scholars have offered some insights into private cryptocurrencies and central bank digital currencies.
We do not mention CBDC, nor China. But they questioned whether bitcoin could be widely used around the world.

First, we are in the era of sovereign countries. Currency is a symbol of sovereignty. Monetary policy needs to regulate the economy, while private cryptocurrencies are decentralized and decentralized, and the government does not have the right to issue and control the currency. It is very difficult for a country to give up such a sovereignty.

Second, the conservation of the total amount of Bitcoin makes it face a dilemma. The development of the global economy and the development of trade requires more liquidity, and Bitcoin has a constant supply. If we give up constant supply and grow at a fixed growth rate, it does not meet the requirements of macroeconomic stability for currency.

Third, the marginal cost of mining Bitcoin is increasing. Because the number is constant, the beliefs of inefficiency, environmental protection, and decentralization also have a dilemma. Many studies have shown that Bitcoin is now concentrated in the hands of a few people, which is also the inevitable result of the final competition in a so-called decentralized market environment. At this time, it is said that it will be decentralized, and finally it will be concentrated in the hands of a few people, and the belief will collapse again. Prices are too volatile for money to perform its basic functions.

Therefore, it is difficult for private cryptocurrencies to become the legal tender of most countries, let alone international currencies.
Rebuttals are welcome.

I learned a little about CBDC and e-CNY, and I do feel that our government has deep strategic considerations.
I heard that e-CNY is very advanced in the world, and there is not much experience to refer to. So many innovations have been made.

You might argue that the funds are fully traceable.
Yes, there are two giants in the payment industry in China, one is Alipay and the other is WeChat Pay. They are all already widely used in China.
In this sense, tech giants have taken control of private electronic payments. It's like Google penetrated American society.

So China's transition from third-party electronic payments to Central Bank Digital Currency is natural, not from paper money.
But I heard that people in many other countries find it unacceptable, I don't know what will happen in ten years.

It is clear that the Chinese government has chosen to develop e-CNY. So we may not be left behind.
I sincerely hope that Bitcoin will develop better.

When it comes to the form of property, I agree that the government is more cautious.
After all, Bitcoin has not been around for a long time, and it is technically difficult for the government to grasp.
This is the beauty of Bitcoin. I agree with this.

Perhaps the ban is due to political factors.
A bit of a conspiracy theory indeed. The following are purely assumptions.
I don't quite believe that if the US government wants to control the Bitcoin community, there is nothing they can do.
It would be scary if, I mean, if the Chinese use of bitcoin is very common, maybe our competitors will control the bitcoin community.
Just like they were going to pass a bill in Congress that would take away the US bonds we bought.
They can get anything they want.
They might say that there are Americans in the Bitcoin community and that 10% of American technology must comply with the Export Act.
They might say that Bitcoin is suspected of money laundering and that community leaders have to come out for a hearing and add a piece of code to operate legally in the United States.
The reasons don't matter, the result is "they can get anything they want".

To be clear though, the Bitcoin community right now is very nice and not distracted by a lot of ideology.

This is somewhat offensive.
There is no perfect system in the world.
Even if you live with the most liberal and democratic Big Brother, it is useless for ordinary people to speak. If you don't want your family away from you because of the virus, if you don't want your family to die because of a shooting, if you want real racial equality...... I don't believe there are more than 300 million people in America, and no one thinks that way. With all due respect, what you said is useless.
Although the president can choose one or the other, it seems to have the most advanced democracy and freedom in the world. But no matter who you choose, it will not represent the interests of ordinary people. Therefore, although the president is elected by the Americans, he can only represent the big capitalists forever.
The two parties in the U.S. always quickly reach agreement on foreign-related bills, such as foreign sanctions, war aid. But the internal bill does embody the so-called democracy, and the two parties are arguing and wrangling each other for their own interests. Passing such bills in the House and Senate is always a waste of national political resources.
Perhaps this is the key factor behind China's rapid development in recent decades. Because we handed over the big goal to the elite of this country. The deputies to the National People's Congress must reach an agreement as soon as possible so that we can spend more time on reform and construction. And most of us do put most of our energy into building our own country.

Bitcoin also does not require any country. But I guess if the Chinese government accepts Bitcoin, its price will more than triple. I don't know if this is important to Bitcoin users.

I have never heard of my government holding bitcoin assets. There are a lot of US dollar assets, and they may all go to buy US Treasury bonds.

A bit off topic, sorry. I don't fully agree with certain points of view, and I don't mean to change your opinion.

China has a history of humiliation, and maybe many countries have it. To some extent, we enjoy peace and stability, but we have to sacrifice some democracy and freedom. I believe this is understandable.

I agree that the Chinese government wants to know the ins and outs of the money. It's like the US has taken control of the Swift system. The U.S. government actually knows the inflow and outflow of every dollar. No offense. But if Bitcoin actually threatens the Swift system, my guess is that the U.S. will immediately ban Bitcoin from the world. Calm down. Because Bitcoin is not yet able to challenge the status of the US dollar.

In addition, the status of the US dollar and the RMB in the world is different. This is incomparable.

Objectively speaking, China is not banning blockchain technology. I am a graduate student in China, and the direction I chose is blockchain. We have a lot of mentors here who are mentoring blockchain.

But China bans ICOs, which the government believes could carry significant financial risks, such as suspected illegal fundraising.

As a student at a Chinese university, I do not comment on the Chinese government's choice. Perhaps you can understand that if 1.4 billion people have to express their views on cryptocurrencies, it will be more chaotic than the Middle East. In a sense, that's impractical.

But we can really study the technology of Bitcoin and its cryptocurrencies. Note that it is not that Chinese people do not pay attention to cryptocurrency technology.

Sometimes we feel like we can't find more blockchain jobs. But if the blockchain can bypass the ICO and just record the information of certain industries faithfully, I believe the Chinese government will not refuse.

Haha, many people use the word “control” when talking about the CCP, why can't it be a kind of protection?
So does monitoring of classified communications around the world count as control by some agency in the United States?
Isn't the US protecting its so-called national security?

Some people say that the wealth accumulated by an individual should be in the sun.
In other words, there is no fear of being investigated by financial institutions if it is legal property.
It doesn’t matter if you don’t use Bitcoin to maintain your anonymity. What do you think?

I am bullish on the future of Bitcoin as a technology.

You can say how stupid the policy of banning cryptocurrencies is, including but not limited to no mining, no circulation, no banking services, no listing on exchanges.

But please don't stop there. Please state your reason.

Everyone can speak their own opinion, but only on behalf of the individual.
I don't know the deep thinking of the Chinese government. So everything is just guesswork.

I don't think your concerns are pessimistic. In fact, very few countries in the world can achieve true independence. Governments in many countries listen to Big Brother.

The government of any country will never say the deep reason, including the United States. I'm just guessing.
In fact, e-CNY is not a cryptocurrency, it is a digital form equivalent to legal currency.
Not all virtual economies are unacceptable. Like e-commerce, e-banking, to some extent it's to help the real economy, and it can be fully regulated.
I don't know much about money laundering with bitcoin, but I think it does make it easier to send money around the world. Capital outflows may be a matter of great importance to governments around the world.
There is a special economic entity in China, the state-owned economy. Many famous college students use the computing resources of state-funded computer labs, and that money should not be used for mining. In fact, anyone with the right can do it. They just use state money for their own profit.
Many views are not absolute, it depends on our government, so what I think is really just for reference.


Indeed, Bitcoin is not affected by inflation, because its supply and demand are always difficult to balance, and the price fluctuates too much.
Perhaps in the world's No. 1 country, financial openness and freedom can be chanted. But this is not possible in all countries. As you can imagine, if this was not an absolute advantage for the United States, it would not advocate it as such.
Of course, it can increase revenue for miners, which is not speculative, if miners choose to join the mining pool.
Not everyone understands the risks involved in Bitcoin, but everyone has a dream of making a fortune.
There are some ordinary families around me who went bankrupt because of virtual currency transactions. They do blame themselves, of course, but financial regulators believe they have a right not to make extremely risky investments available to ordinary people.


Yep, that's why I login the bitcointalk. Because I believe that Bitcoin will change for the better with or without China's participation.

Well, I'm Chinese, let me tell you how I feel. Only on behalf of personal views. A bit off topic, but offers a different perspective.

First of all, the Chinese government hopes to develop the REAL economy, and does not want the economy to be deviated from the real to the virtual. It is clear that the trading of cryptocurrencies and their tokens is a virtual economy.

Second, China's financial authorities have always emphasized STABILITY as the main tone of policy formulation. This is easy to understand. The result of excessive financial openness in many developing countries is not long-term prosperity. The price of cryptocurrency fluctuates wildly and is not suitable for ordinary people to speculate, so China does not allow Bitcoin to circulate.

Third, any industry is relatively easy to control in the early stage of development. When more and more people are involved, even if legal control should be introduced, it usually encounters great resistance. This may also be the reason why China will soon ban any local banks from supporting bitcoin transactions.

The last point may be the issue of carbon neutrality related to environmental protection, which is also the issue of climate change. I don't think this is the main reason why China banned mining. More consideration is the desire to prohibit the circulation and trading of cryptocurrencies in the country.

There are some similar questions and answers in StackExchange.

How to understand Bitcoin source code?

Where to find help understanding Bitcoin's source code in C++?