The relationship between virtual currency and real money

这篇文章讲述了虚拟货币和真是货币的关系，以及未来虚拟货币有可能取代真是货币的大致趋势。“在网友的私人交易中可以使虚拟货币成为真正的钱。”

Relationship between the Virtual Currencies and the Real Money
Selina Gonzalez
University of Victoria
V01234567
课程名
截止时间

Abstract
Increasingly closer is the network toward human beings’ daily life and greater and greater is the amount of human beings that have been involved in the deals successfully conducted by the virtual currencies, currently the great majority of human beings are wondering about whether the virtual currencies will replace the real money in the later life and whether that will be a new currency war. The network virtual currencies, as a new media and transaction management tool, have occupied a large part of the seats in the whole trading system. Whenever it comes to the idea that the virtual currencies will replace the real money some day, a negative voice will all the time cry out that the virtual currencies can never replace the real money even if the role that the virtual currencies play is more and more obvious in recent days. There is no doubt that I am personally in favor of the latter opinion that the virtual currencies can not replace the real money, which will be elaborated in the following from my own point of view. During the whole process of illustration, the future development of both the virtual currencies and the real money and the relationship between the virtual currencies and the real money will more or less be referred to for the better explanation of the problem whether the virtual currencies can actually replace the real money. 
Keywords: the virtual currencies, replace, the real money

Relationship between the Virtual Currencies and the Real Money
   First and foremost comes that though the virtual currencies that are currently popular like Ripple, Bitcoin, QQcoin as well as other forms can be used for exchanges and trading just like the real money, the precondition is that they are paid by the real money (Rajala, 2014). Or maybe it can be put in another way that the virtual currencies are just the network payment form of the real money and it is hard for them to be used as the real money in the daily life. It can be easy to understand in that the virtual currencies are endowed with value, but they can not be directly used for exchanging real items in the market. From this sense, we can say that the virtual currencies are not a commodity but a currency with limited functions. If you are one that has even engaged in the deals of the virtual currencies, you can quickly understand that usually the real money can be directly changed into the virtual currencies while the virtual currencies can not be that easy to change into the real money unless it is agreed by e-pals. We can say that the private transaction among e-pals can enable the virtual currencies to become the real money. 

   With the virtual currencies’ limited functions being mentioned at length in the above, what comes next at the list is that the virtual currencies, unlike the real money as is issued by the state unitarily, are issued by individual operators themselves and there are no concrete laws and regulations that have been published to limit its circulation (Foley, 2013. p30). When the virtual currencies are having a more and more frequent exchange in wider and wider scope out of private interests of business operators, they have actually increased the supply of the real money. And it is predicted that there is a growing trend for human beings to use the virtual currencies and it seems that the virtual currencies have to a certain degree replaced the real money to buy the commodity or labor in the market. Moreover, some virtual currencies have already evolved to contain several features of the real money, such as measure of value, medium of circulation, medium of payment together with other ones like that. Therefore the virtual currencies tend to exert impacts on the real money so as to affect the normal financial order (Castronova, 2014). And as there are no specific laws and regulations put forward for the management of the virtual currencies, it will totally be a mess if the virtual currencies have actually replaced the real money. It, in a way or another, will influence human beings normal transaction behaviors in the market so as to influence human beings everyday life and the government will as well be influenced out of the influence from the currencies. 

   Last but not the least comes that the only use of the virtual currencies can not satisfy the needs of the ones that have not taken part in the virtual world. Blankly speaking, if the virtual currencies have completed replaced the real money, then the old or the illiterate ones can not participate in the market activities as they do not know how to handle the network by themselves. We can have a fair knowledge that the world after the virtual currencies have actually taken in place of the real money, then the whole market will seem to be a totally strange world for them and they can not do anything within it (Kelly, 2015). It seems that the market around means nothing to them and makes no sense to them at all. The common sense tells us that such a situation will not be accepted and it will not be beneficial for the development of the whole society in the long run. It can not be denied that the appearance of the virtual currencies is an inevitable trend with the development of the world economy in recent years and the virtual economy is as well a new economy nowadays. Furthermore, if it can be well taken advantage of, then it will also be a huge wealth of human society. So the best situation is the combination of both the virtual currencies and the real money so that it can on one hand facilitate the development of the whole society and it can on the other hand consider the needs of all groups of people. 

   To sum up, the virtual currencies will not replace the real money and the aforementioned two will co-exist with each other to contribute to the development of the whole society in the long run. And such a state will be suitable for all groups of human beings and can survive all the time. 


References
1. Castronova, Edward. (2014). Wildcat currency: how the virtual money revolution is      transforming the economy. New Haven Connecticut: Yale University Press. 
2. Foley, Stephen. (2013). Virtual currencies run into legal trouble. The financial Times.  May 31. p 30. 
3. Kelly, Brain. (2015). The Bitcoin big bang: how the alternative currencies are about to change the world. Hoboken, New Jersey: John Wiley & Sons, Inc. 
4. Rajala, Liisa. (2014). Bit by Bitcoin: virtual currency ATMs coming soon to New Hampshire. New Hampshire Business Review. 36 (20).