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By the way, the previously described tokens and cryptocurrencies as stocks were written to explain the mechanism of actual operation, but the function as a currency that I want to talk about this time is more careful because it is difficult to see that it is actually working properly. I had two concerns while writing this article. https://www.topseom114.net/ First, emphasizing the possibility of functioning as a currency can bring about emotional rejection by those who are accustomed to the centralized economic system under the control of the state and the government. Many people have already expressed their extreme objection to the new paradigm that cryptocurrency and blockchain may bring. Such people may find it difficult to accept even the fact that cryptocurrencies function as tokens or stocks. But how much more is the possibility of money! https://www.topseom114.net/ Second, ignoring the possibility of functioning as a currency, on the contrary, the function as a "direct transaction method between parties that does not require the intervention of a trusted third party (government, bank, credit card company, etc.)" that was aimed at when Bitcoin was born it just disappears Also, in fact, among the numerous cryptocurrencies currently issued, there are many cases that aim to function as a decentralized currency, starting with Bitcoin. I think more than 90% of investors who invest only in the possibility of functioning as money in the future without at least understanding the business purpose of the cryptocurrency they have invested in, that is, what kind of blockchain ecosystem they are aiming to build. In other words, even in the case of cryptocurrencies that do not aim to function as money, investors often invest in the expectation of functioning as money. Cryptocurrency, virtual currency, electronic money, etc., it seems to be a misunderstanding because it contains the word money. This is also the main reason why cryptocurrency investment has a stigma of speculation rather than investment. https://www.topseom114.net/ Regardless of misunderstanding and distrust, cryptocurrencies that claim to function as decentralized currencies exist and are not likely to evolve into a more developed form in the future, so let's discuss this. First of all, it is my opinion that there is nothing that can be seen as functioning properly as money in any of the cryptocurrencies as of this time, online and offline. Let's stop talking about the transaction speed and the transaction fee. Blockchain technology is developing to the extent that it is rather strange to think that a cryptocurrency that solves such a problem cannot appear in the near future. We leave technology development to the developers, and let's not think too hard and think as simple as possible. Whether it is in the form of a piece of metal, a piece of paper, or the form of data stored in a USB memory, what are the conditions for recognizing it as money? First, the buyer must have the belief that if he takes it, he can receive the desired goods or services from the seller. From the seller's point of view, the person who wants to purchase their goods or services must have the belief that they will bring them as a means of purchase. https://www.topseom114.net/ However, in reality, even in Japan, which is said to be the paradise of bitcoin, buyers cannot trust that they can pay with bitcoins by going to any store, restaurant, or gas station with bitcoins. Conversely, from the seller's point of view, many of the buyers who come to receive their goods or services do not have the belief that they will come with bitcoins, so they can be confident that they will use bitcoin as another payment method other than yen or credit cards. none. https://www.topseom114.net/ Second, in order to be called money, it must have a minimum stability of value. It is very difficult to recognize as money something that can increase or decrease in value by 10% in a few hours. In the case of a seller, it may not be a big problem if a system is created in which payment is made quickly and the payment is immediately exchanged for fiat currency. But for buyers, if you expect the value to drop, it's better to sell it as soon as possible on the exchange before it goes offline as a payment method. Conversely, if the value is expected to rise, it is not worth using it as a payment method. Rather than buying a small car with just one bitcoin now, if the value rises more in a few weeks, the decision to buy a mid-size car continues, and it cannot be used as a payment method. Even if one Bitcoin reaches the price of a mid-size car, you can buy a mid-size car with fiat currency and wait for the Bitcoin to rise to the price of a large car. In other words, it can be recognized as money only when the problems of universality and value stability are resolved. However, these two are inseparable. When universality is resolved, value stability is highly likely to occur spontaneously. Of course, in order to achieve value stability, the issuance volume must be appropriately adjusted. It seems very difficult to solve this problem of universality and value stability, whether Bitcoin or any other cryptocurrency in the near future. However, in my subjective judgment, there are areas that have the highest possibility. That's the casino industry.