The Existing Deficiencies of Virtual Currency and Its Possible Development Direction

Abstract

The virtual currency market born from the blockchain is developing rapidly, and the market has reached a scale of hundreds of billions of dollars. Even some countries are trying to use virtual currency as the official currency. However, due to the limitations of virtual currency itself such as decentralization, the current virtual currency is not a good substitute for existing currency, and there are also illegal activities such as using virtual currency to launder money. This article will focus on explaining the main shortcomings of virtual currencies, the inadequacy of the trading market and its regulation, and the possible negative impact on the economy. And explore the possibility of future virtual currency development from two aspects: virtual currency adapts to the existing market and new market adapts to virtual currency. And finally came to two conclusions, large international companies or central banks can also develop virtual currency, so that virtual currency can adapt to the existing market to some extent. At the same time, the constantly developing virtual reality technology and the possible virtual world in the future may also provide a broad application space for virtual currency.