[The Typing Baker] Can Bitcoin Become a Global Currency?

[Asia Economy Reporter Lee Ji-eun] John Keynes, Hayek, Milton Friedman. The commonality among these well-known economists is that they early on deeply felt the necessity of a 'world currency' and advocated for it. This was due to concerns that if the currency of a hegemonic power became the 'key currency,' trade wars and currency wars would intensify, potentially escalating into actual wars. Keynes proposed using a world currency called 'Bancor,' and Hayek called for the liberalization of currency issuance in his book "Denationalisation of Money." However, the wishes of these pioneers were not realized.

And now, crossing centuries to 2021, if they were still alive, they might perhaps call Bitcoin a 'world currency.' Bitcoin was created by an anonymous individual or group known as 'Satoshi Nakamoto' and is free from the issuing influence of powerful central banks. Major payment systems like PayPal have added Bitcoin as a payment method, and recently Tesla also enabled payments with Bitcoin. Exchange-traded funds (ETFs) based on cryptocurrencies as underlying assets have also emerged.

Nevertheless, the perception of cryptocurrencies like Bitcoin and Ethereum remains unfavorable. Many view them skeptically, saying their 'intrinsic value is zero,' and that their prices rise only due to asset effects from expanded dollar liquidity but will eventually return to previous levels. Unlike stocks or other assets where so-called 'fundamentals' can be calculated, it is difficult to calculate the fundamentals of coins. Another issue is that they are not immune to hacking.

This book is for those who harbor doubts about whether Bitcoin can become a world currency, explaining from the basics the history, meaning, structure, and theoretical background of Bitcoin. It clearly explains how the concept of blockchain emerged to solve Bitcoin’s issues of forgery and double-spending, and the background of Ethereum, which networked blockchain to overcome Bitcoin’s shortcomings. It also touches on concepts such as token ecosystems based on coin platforms, non-fungible tokens (NFTs), and decentralized finance (De-fi). While it does not provide detailed information on each coin, it helps cultivate a perspective to comprehensively view the cryptocurrency industry. The fact that blockchain experts such as Park Sung-jun, CEO of Andus, Kim Seung-joo, professor at Korea University Graduate School of Information Security, and Han Dae-hoon, an SK Securities analyst with experience publishing Bitcoin reports, participated heavily in writing adds to its credibility.

Recently, news has emerged that the 2030 generation, despairing over rising real estate prices, is increasingly turning to cryptocurrency investment as a last resort. While some invest long-term, many others engage in 'speculation' rather than 'investment,' thoughtlessly jumping on rapidly rising coins by focusing only on short-term volatility. As Bitcoin, which once rose to around 80 million won, plunged to about half that level, their dreams of big profits have been shattered, and fears of total loss are creeping in. To avoid being shaken, how about stepping away from speculation and revisiting the basics of Bitcoin starting now? This book will help guide that path.