The reason why virtual currency is called "virtual" is because it is a digital asset and has no physical entity. Different from traditional currencies (such as New Taiwan dollars, US dollars, RMB, etc.), traditional currencies are issued by the government or central bank and are legally protected by the government. Virtual currency is issued on the Internet through encryption technology and is not controlled by any government or institution.
The value of virtual currencies depends on supply, demand and market confidence. If the demand for a virtual currency is greater than the supply and the market has confidence in it, its value will rise. On the other hand, if the demand for a virtual currency is less than the supply, or the market loses confidence in it, its value will fall.
Therefore, whether a virtual currency exists or has value depends on the following factors:
Technology development: The technical basis of virtual currency is blockchain. If blockchain technology can continue to develop and be widely used, then virtual currencies are likely to continue to exist and grow.
Government Regulation: Governments have varying attitudes towards virtual currencies. If governments adopt a positive regulatory attitude towards virtual currencies, then virtual currencies are likely to be more standardized and legalized, thus enhancing market confidence.
Market Demand: The final value of a virtual currency depends on market demand. If virtual currency can meet people's needs in payment, investment, financing, etc., then its value is likely to continue to rise.
All in all, virtual currency is an emerging financial asset whose future development is full of uncertainty. But from the current point of view, virtual currency has attracted widespread attention around the world and has certain development potential. Therefore, it cannot simply be concluded that virtual currencies will cease to exist or have no value.
Here are some factors that could cause a virtual currency to disappear or drop significantly in value:
Technical flaws: If blockchain technology has major flaws or is replaced by new technologies, virtual currency may lose its value base.
Regulatory suppression: If governments adopt strict regulatory measures on virtual currencies or even ban their transactions, virtual currencies may be marginalized or disappear.
Market Bubbles: If a bubble occurs in the virtual currency market and eventually bursts, the value of the virtual currency may drop significantly.
But it’s important to note that these are just some possibilities and cannot predict the future of virtual currencies with certainty.