History of currency changes
1st Generation : Gold
Electrum coin was made from Lydia 3,000 years ago
2nd Generation : Paper Money
Bank and paper money appeared in Europe1800s.
3rd Generation : Credit Card
Credit card was used in online market
4th Generation : Digital Coin
Digital currency such as UTA CASH, Bitcoin etc
Appearance and Progress of virtual currency
Total circulation of cash in the world is 450 trillion dollars in 2006 and 600 trillion dollars in 2015.
Cash and coins that are circulated are 6 trillion dollars(USD) only, 10% of total. The rest, 90%, only exists in numbers in computer.
Background of virtual currency’s appearance
With development of digital civilization, problems with the exisitng currency system appeared. A need for more evolved currency that is suitable for digital civilization of more convenient and safe format that can satisfy the fast changing world major industries.
Developed to trading and investment
Diversificatoin of investment in assets including realestate, bonds, securities, gold, commodities, and foreign currency. Investment concentrated on virtual currency which is an alternative currency as futuristic investment products
Types of virtual currency
Cannot be exchanged with actual currency and used to buy products and services at designated places
Can buy virtual currency with actual currency, but virtual currency cannot be exchanged to actual currency
This is a type that can be inter-exchanged with actual currency, and virtual currency falls into this category.
Global financial world and virtual currency
Expected to invest 23 trillion won by 2022. Major American Investment banks started to invest in virtual currency in earnest
Goldman Sachs is planning to make it possible not only for simple transfers but also for trading securities and bonds through virtual currency.
30 global investment banks including Citi group, HSBC, and JP Morgan to form an R3CEV consortium to start the process for development of transfer and payment systems and international standardization for virtual currency.
Characteristic of virtual currency
Encrypted virtual currency can be transferred to anywhere in the world by internet and can be used anywyere
Can be used anywhere in the world, and can be exchange and transferred from the exclusive ATM machines
Without limitations with time, it can be transferred and used between individual without going through banks and financial institution
Can be used at online and offline affiliated member stores around the world including shopping malls, department stores, convenient stores, big discount stores, cafes, and restaurants.
Virtual Currency Success Story (BITCOIN)
The revolution of digital currency is presumed to have been started by ‘Satoshi Nakamoto” in 2009
Became a millionaire with a purchase of Bitcoin
Kristoffer Koch of Norway is a young man who became a millionaire after casually buying 5,000 BTC with 27 USD
Jumped from 177 USD to 400 USD
The value of virtual currency has increased due to massive investment of Chinese people who felt uncertain about the economy of their country and the influence of European Court of Justice ruling that recognized virtual currency such as Bitcoin as one of the currencies.