The Innate Limitation of Cryptocurrency

Cryptocurrency was created with an innate characteristic. The answer can be found even in the term itself, cryptocurrency. Before blockchain, Money used for either as a means of trading function or investment capabilities. Transaction money is the main driver of the agricultural revolution. Since then, the industrial revolution added investment function to the currency for trading. The investment function of money is to build manufacturing facilities around the world and make rapid progress in human society.

However, it is ironic that the two-hundred-year-old technology has caused problems in its use as investment currency by slowing the pace of the manufacturing industry as it becomes automated and diversities labor. After all, investment money, which was the main player of the industrial revolution and led the industrial economy through investment in manufacturing facilities, cannot find a place to invest, and crosses lines that should not be touched by real estate and derivatives. Money that fails to invest in production functions will only make money but not able to contribute to the normal development of the economy. In the end, it results in the first global financial crisis in 2008.

It was also in 2008 that cryptocurrency emerged under the name "currency" to make up for lost investment money. We must clearly note the inherent limitations and goals of these cryptocurrency. In early 2000, Naver and Daum survived the competition for numerous portal sites because they saw the innate features of the portal platform, which has been shifting focus from the manufacturing value.

Identifying the inherent characteristics of cryptocurrency is an absolutely critical factor that will determine the fate of cryptocurrency.

First, the monetary function of a new third concept, other than transaction-to-investment function, will be created. A very stable model of money will be created for entropy, which can be used for parts and value transactions that have not been used for money, so that economists can't predict the answer with economic theories and formulas. The sharing economy briefly glittered and confused society, but eventually the sharing economy or shared economy would disappear without gaining legitimacy due to the uncertainty of the accumulation process, which creates a need for another type of currency that can better suit and replace the economic model.

However, this economic model will be created by combining social engineering elements, information engineering elements suitable for the Fourth Industrial Revolution, and financial engineering elements presenting a new financial system, which will be strongly reviewed and criticized by other economists and financial experts. This check and rebuke is a phenomenon already seen in transitional signs, a phenomenon that occurs when mainstream order collapses and a new order replaces mainstream order, and despite the economic trend that cannot resist the tide, the rejection and check of existing economic vested interests will be a very powerful stumbling block. There are strong competitors and opponents. Hence approaching with a business model that is lacking its validity basically is suicidal.

Second, cryptocurrency will not replace existing investment instruments with advanced investment instruments. The reason why the existing investment currency caused the financial crisis is because it invested in areas that were not conducive to the economy. Cryptocurrency will be introduced into areas where investment financing is not of interest but essential for social development. The idea of using cryptocurrency such as insurance, installment savings and investment products to replace existing investments should be remembered that if left unchecked, it will follow the same consequences as numerous portals that have disappeared.

Third, let's stop imagining that cryptocurrency is used as a trading currency in life. That is like shopping with a guarantee of investment after the shift from the trading currency to the investment currency. This is because they are locked in confinement of money. Of course, there are some places where cryptocurrency can be used. It seems that it can be used in markets where its currency functions are not functioning properly, such as in developing countries like North Korea. Natural disaster-prone financial powerhouse Japan could take up the first-generation currency, which is cash. Korea can take the second-generation currency, which is credit card. China can take the third-generation currency, which is mobile payment. Eventually, cryptocurrency can emerge as the fourth-generation of currency.

The market for crypto as an exchange currency is very small as advanced countries already have a system to manage the value of their currencies. The reason why cryptocurrency money is used for gambling and drug money transfers is because this field is the only one that can differentiate itself from the existing currency. Therefore, it should be remembered that the imaginations of using cryptocurrency in restaurants and cryptocurrency in shopping malls in countries where finance has developed to some extent are the fate of the portal, which disappeared 20 years ago.

Only cryptocurrency, which consistently performs business models and items that fit these three characteristics, can survive in 20 years. If all three functions of the thousands of cryptocurrency were to be taken into account, it would now be the most powerful company in the world.

Twenty years later, more than 70 countries that now have their own currency function suspended will use crypto as their own currency. It will be actively used to solve social problems that investment banking has not been able to access. It will succeed without destroying competitors or industries like Amazon, and without borrowing the power of the nation like Tencent. This is because it will succeed without raising stock prices by shouting out Google Glass, IoT and AI like Google, and even without destroying the environment. This is the "Nurim Economy" philosophy and goal for all members of the ecosystem to enjoy the necessary benefits evenly.

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