Crowded-based Finance

[Medium Department Accelerator! 32nd Crypto Prizes by Park Hang Joon, a professor of start-up business at Sehan University.]

So far, the financial system has been designed by reliable financial institutions allowed by the state. Financial instruments has developed and operated, including insurance, installment savings and funds, under strict control and regulations. But despite these tight controls and regulations, a global financial crisis is taking place and the government and the world have been surprised by Wall Street's moral hazard.

Unlike the government's move to protect finance to stabilize the economy after the 2008 financial crisis, the public has been involving in reckless challenges against greedy, uncontrollable finance for a decade. The public created a shared economy, and the public takes the lead in funding and lending. It even began to picture the financial ecosystem in which the public was led to issue money and the public became the main player.

Regardless of the outcome, the creation of cryptocurrency is significant as it was led by the crowd, not royals or the rich families. Financial experts may be laughing at the situation. Only those who have extensive financial experience and proven economic expertise can stabilize society through stable financial structure and secure the stability of investment. The public, who is an outsider in finance, warns that it could confuse society by impersonating financial institutions. Officials are also busy regulating cryptocurrency transactions, saying "it was a dangerous attempt, while acknowledging the spirit of innovation and challenge." Based on existing financial standards, the government is poised to wipe out "crowd-driven financial system" at once as it seems sloppy. However, the government is only watching because its influence is not significant yet.

The actual P2P loans amount to only 300 billion won, and even if the total value of the cryptocurrency is collected, such won't amount to how much Lehman Brothers handled 10 years ago. Millions of people aren't losing their homes and property, and hundreds of young people are not dying in cryptocurrency investments. Thousands of cryptocurrency bills are on the verge of disappearing, but the Korean economy is improving due to its parallel experience in which thousands of portal sites were created and disappeared amid the venture boom. Rather, it is their view that the portal site venture helped overcome the IMF and presented a new growth engine. Thus, the economic community is not confused, even though many cryptocurrency transactions are proving to be failed businesses. Rather, the public is stepping up to warn of the dangers of cryptocurrency and urging restraint.

Yes. Now the public is not a fool. The public does not believe that the financial system that generates 40 trillion won in net profit per year in Korea alone but also empties their purses as their friends. Rather, they believe that financial capitalism should no longer suck up ordinary people's wallets. That's why they are silently cheering for a new financial system that may seem reckless and following cautiously.

Through public-led finance, they want to escape from existing greedy finance by solving investment, installment savings, remittances, PF, shopping and even social problems. This escape attempt may be reckless, but it is the general trend. It may be ignorant, but it also knows the mission of the times. That's why people are rooting for the new system. If finance had been an exclusive benefit that only certain people (organizations) could enjoy under the protection and control of the government, people now believe the benefits should be brought and enjoyed by the public. Popular-led finance has already accumulated a variety of experiences. Over the course of 10 years, we have experienced and created a mass-driven economy, including shared economy, P2P, crowdfunding, joint purchase, fastball, CSR (company's social responsibility), donations and SNS network-based activities. Already, these movements and challenges are exploding in many parts of the world.

The public knows. Without this reckless and seemingly ignorant attempt, the lives of our descendants will be squeezed like ours, working without hope. We don't want to pass on our lives as financial slaves that succumbed to the face of the enormous power of financial institution to our descendants. Hundreds of years later, we don't want to be seen as people in the 2000s in which they lived in a caste system and majority suffered because of a small number of greedy financial institutions. It may seem reckless, but "mass-driven finance" is our gift to future generations. So, it is also our mission to make it happen.

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