My enthusiasm for cryptocurrencies has completely cooled. You can tell that this is not due to the recent significant declines, as I have been through several cryptocurrency ups and downs since 2017 to stay in business.
It was through meeting Uri Nakamura, a cryptographic security professional, that I learned about the history of cryptography, the global background that gave birth to Satoshi Nakamoto, and the vulnerability of the blockchain.
Taking my eyes off the boom and looking at cryptocurrencies from a macro perspective, I have a few simple questions. Are cryptocurrencies…
◆Weak settlement power (time-consuming ledger entry and lack of immediate settlement power of money)
◆Less secure (encryption is being broken and stolen at a rapid rate)
◆No creditworthiness (repeated hard forks have diluted the value)
In addition, we also notice that we do our own art trading for NFT.
◆No DRM (copyright management), so copying is easy
◆Exists only in virtual space and has no public nature
◆Low intrinsic value, which means that there is little liquidity and investment value is not guaranteed.
That is not to say that the birth and rise of cryptocurrencies was without meaning. It was able to bring to the world the meaning of decentralized and diversified money that can be issued privately, not just centralized money issued by the state. Whether it is democratic or not is doubtful when reading this article….
It is also commendable that digital art, which is based on the premise that it can be copied, has become somewhat rare. Until then, digital art was considered one of the “media arts” and had a minor existence compared to real art. It is also commendable that the NFT has made it a major art form.
To put it plainly, NFT art is a plaything like a slingshot: the people who created the NFT boom were not old-fashioned artists and art curators, but DJs and EDM people in Los Angeles and Miami, who started it just for fun. One famous DJ made millions by buying and selling thousands of NFT art pieces. However, it is like the theory of the King’s Game: only the “parents” can make money. The average user can never make money in the long run. However, if you consider it the same as playing pachinko, it is possible and meaningful to temporarily satisfy the demand for fun.
From these lessons we must take the next step.
We must develop and disseminate digital money using full cryptography with hash chains, rather than fragile blockchain-based cryptocurrencies, to create a secure, global money that is adaptable to the digital society. Once we have a digital money that tax authorities can understand, its circulation will be more active.
And NFT,,, I don’t think it is worth much anymore. It is better for you to sell while the market is heating up and invest in real art.
P.S. Please check out the two links below.
(1) Jun Fukuda’s blog post
Cryptocurrencies Stolen in the Largest Steal in the History of Money!
(2) Jun Fukuda’s dialogue program
From Cryptocurrency to a “Multilayered Economy” Society.”
(Guest: Uri Nakamura, Japanese cryptographer, information security consultant and entrepreneur)
YouTube version ( 4 episodes)
Text version (before and after)