Introduction
   If you look around, you will soon notice that our life is closely bounded to finance. What we use often, such as remitting applications, and easy payment service like Kakao pay is developing our life in a more comfortable way. However, not every finance service we use started in this form. Like philosopher Heraclitus of Ephesus said, “Only thing that does not change is the fact that everything changes.” The finance industry has changed through the flow of time, especially interconnected with technology development. We named those total changes in the finance industry “Fintech”, which is a compound word for Finance and Technology. Due to the subprime mortgage crisis in 2008, consumers’ reliance on the existing finance system was destroyed. That is the main turning point in the Fintech industry. In addition, a new economic current called “Blockchain”, and “Cryptocurrency” arises as a product of blockchain technology.
   As finance keep up changing with social flow and requirements, the fundamental reason why customer uses financial services does not change. They want to keep their money safe, increase their fortune and send their money to counterparts safely. So there the question arises: Is the new flow of finance ensuring “safety” enough, which is the banner of finance? We have watched the collision of existing finance, which we believed to be safe, and now facing a shift of paradigm we never have experienced. As we now live in a society where everything changes in the blink of an eye, consumers must know about the changing finance to keep themselves safe.

1. Fintech
Fintech, which is a compound for Finance and Technology, ranges over changes in Financial services and industries based on advanced IT technologies. Out of these, what we call traditional fintech is providing or iginal financial services performed in a bank with the internet. Emerging Technology covers overall changes in the finance industry, in which nonfinance companies offer financial services.

1-1. Finance + Technology = Fintech
   Emerging fintech first appeared in 2007. When Steve Jobs’ iPhone was first released in the market, the popularization of the mobile phone arises and new social flow, digitalization in financial transactions, start to spread in the field of economy. It gave consumers convenience by providing every service available at offline finance institutions on online platforms such as payment, remittance, and loans. However, the rapid spread of this fintech concept is largely affected by the subprime mortgage crisis in 2008.
   The subprime mortgage crisis refers to the economic issue that appeared because of excessive sales of residential mortgage loan products for the low-income group. Due to the excessive sales, the economy was overheated, and the bubble soon collapsed. Financial institutions related to this product continuously went bankrupt. After this crisis, the American government executed a high finance regulation policy, but the trust of the consumer once broken did not come back. What consumers looking for alternative discovered is emerging fintech, in which financial services are given by a third force such as a non-finance organization or startup company.

2. Blockchain
Blockchain technology is one of the most representative developments in the emerging fintech area. Most of the development belongs to emerging fintech has central executive such as non-financial company, but blockchain network based on blockchain technology is entirely without the control of centralized supervisor. After the subprime mortgage crisis, when the trust of the market consumer in financial institutions fell to the bottom, someone who uses “Satoshi Nakamoto” as a nickname submitted a paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System”.
   In the Blockchain network system composed of Blockchain technology, there is no physical authorization to control every user. Consumers looking for new methods to keep their safety from an unsafe existing system invented new network. The invention of blockchain gave some consumers hope that they can form a new economic system without the intervention of the government. Then, what feature fostered those hope in consumers? We need to see the main characteristics of a blockchain network to know the reason why.

2-1. Four characteristics of the blockchain network

01 Decentralization
   The prime character istic of blockchain is decent ralization. In The blockchain network, the collection of transaction records called “Block” is managed by every participant (computer) in the network. As the central manager does not exist, network participants do not need to worry about the case in which every data become dangerous because of the central attack, or the collective collapse of the controlling center.

02 Transparency
   Every single time when new transaction data is formed, it is sent and shared with every participant at the same time without change in content or interruptions f rom outside. It is called t ransparency of data. Each par ticipant is an inspector in this network. Therefore, when someone modifies data with malicious intention, everyone could know it soon. Formation and alternation histories are also recorded inside the network, so data management by tracing is possible.

03 Immutability

   After transaction records are connected successively and a block “chain” is formed, the transformation of a particular block by each participant is impossible. Since the new block formed is connected to the front block’s information, to change one block, every participant needs to change the connected blocks recorded in the network.

04 Availability
Data in the blockchai n network is saved on every participant’s computer. It means that even if one piece of data went wrong, the whole system can run properly by using other same data hardwired into the participant’s computer.

2-2. Is blockchain technology safe?
   Blockchain technology is estimated as a technology that has the potential to change our life innovatively. We are now facing the era of 5th industrial innovation in which new information technology acts as the main source of change. Blockchain technology is technology to treat and manage data safely. In this situation, the rise of blockchain seems reasonable. However, it has some controversial points since the technology was applied to real industrial areas less than 20 years.

01 Privacy problem
   A Blockchain network is a kind of distributed network where every participant records and supervises transactions. Since many people manage information together, records are obliged to be public. Even the parties in the transaction appeared as the complicated address, however, there are some ways to match the address to a real individual. Recently, some enterprises succeeded in finding out the actual owner of the record by analyzing data.

02 Hacking
   As the blockchain prevents transformation of data theoretically, it seems that they keep on per fect security. However, blockchain is eventually software, operated by a code. If the code composing the blockchain server went wrong, the blockchain is no longer safe. For example, enterprise The Dao experienced financial damage of 6,000 dollars because hackers attacked the management sys tem run by blockchain. 

03 Slow speed
   In the blockchain server, we must wait unt i l the informat ion i s connected successively so that “blockchain” is formed and t ransformation becomes impossible. This means that when one transaction is recorded, we should wait unt il numerous records gather and form one g roup to receive secur ity (unchangeable characteristic). Even after a block is formed, it spends a lot of time getting verif ication by every participant.
   Even though blockchain network is one of the unstoppable flows of f inance today, it is unclear whether it can provide safety to us since some safety problem arises. It is essential that blockchain networks need technological improvement to keep the consumer safe so that we can use this technology in our lives without hesitation. However, as we are the principal agent using blockchain technology, we must know exactly about its purpose and principles and think carefully about the aftereffect.
   The reason why we must know about blockchain is that it is not something located far away from our life. Blockchain is already rising as a prime concept of future innovation, and there is a prevailing opinion that it will act as a major technology in the future due to the main characteristics of blockchain: Transparency, Immutability, and Availability.
   It is already expanding its area. Existing banks we used to keep money safe accepted blockchain technology. For example, Shinhan bank cooperated with startup company Streamy using blockchain and released an oversea remit tance service using blockchain named “Gopax”. Amer ica’s over-the-counter market, the Nasdaq market, introduced blockchain in the stock t ransact ion process. As a result, they can reduce t ransaction time from three days to 10 minutes.
   Emerging of Blockchain technology affected other areas except for finance. Smart contract is one example. In a smart contract, every process of the contract is held inside the network automatically, without the central institution’s interference and additional fee. One example of a smart contract platform is Ethereum. Ethereum is now working on various areas such as leasehold of real estate.

3. Cryptocurrency
   Those who pursue a safer system than the previous one began to give value to safety through some activities, such as putting new money in circulation and mining the records of issuing money inside the blockchain system. This is how “Cryptocur rency” is born, based on blockchain technology as mentioned before.
   The background of the bir th of the cryptocur rency concept was the global financial crisis in 2008. To be accurate, it is a new currency started from the expectations and aspirations of those who star ted to question the system in which central banks issue and control money. The first cryptocurrency created is called Bitcoin, which uses the blockchain technology described in the paper.
   Since Bitcoin is also one kind of currency, it must be used by many people. Bitcoin does not have an issuer such as a central bank like real money, so the information of transactions is stored on a distributed server inside the blockchain. To keep its server in an adequate state, it gave reward to users in the server who created a block. Creating a block here means finding a specific number related to the block. Only after that process participants could purchase bitcoin. As this transaction record is added to the server, record cannot be modified is created.
   However, it is true that cryptocurrency traded inside the blockchain and blockchain itself has a lot of influence on our lives, and it has potential to solve existing financial problems. Nevertheless, cryptocurrency is not being recognized as an official currency in most countries. Paul Krugman, a professor at New York City University who was awarded the Nobel prize in economics, criticized Bitcoin in New York Times saying that “Cryptocurrency is used only in money laundering and illegal fields except for speculation.”
   Let us see another example of El Salvador. El Salvador is a country that admitted Bitcoin as a legal currency that has the same status as paper currency due to the collapse of the real economy in June 2021. However, most of the people responded negatively saying that “Actually, I do not want to get wage by Bitcoin.” or “I do not expect the Bitcoin system to improve the economy.” In addition, many other economic experts argue that Bitcoin does not function properly as a currency. Also, most people recognize bitcoin as not an investment product or new currency but only an object of speculation. What is the reason? 

4. Danger of Cryptocurrency
   The biggest feature of cryptocurrency is variability, without any doubt. Unlike real assets such as stocks, bonds, and currencies, their value fluctuates depending on the volume of transactions on the server or exchanging market, so it does not have the function of storing value that is required to operate as a real currency. Moreover, it is traded on a blockchain server where central managers are absent, and they are unsubstantial. Cryptocurrency has no other way to accurately check the transaction process except voluntary reporting. This characteristic makes it easier to use Bitcoin in crime. Things that have been worried since the concept of Bitcoin appeared in the market are coming for real.

4-1 Bitcoin bubble
   When Bitcoin first appeared in 2009, it was only a virtual asset nearly having no value, worth about 9.4 won per coin. In November 2012, Bitcoin had a half-life in which the mining incentive was reduced to half compared to the previous year. Since bitcoin’s production is limited, its price increased because supply decreases. In the early 2010s, the price rose significantly, and Bitcoin became known to the public as people in Cyprus who could not use cash due to the freeze of bank accounts chose Bitcoin as an alternative. However, Bitcoin began to fall to the 3 million won level as of March 1, 2019. Compared to the 30 million won per unit in December 2017, not only did the price fall by 1/10, but the trading volume also fell by 1/20. It was 2021 that cryptocurrency, which had kept rising and falling, entered the upward trend again. As the government was concerned about the economic depression caused by COVID-19, they increased the amount of currency, and people start to look for alternative investments called cryptocurrency to prepare for inflation. As expected, the overissued currency of the government which cannot be used in the actual market blocked by COVID-19 flowed to the stock market, raw material market, apartment market, and virtual asset market. Even financial institutions and companies bought bitcoin, which is also a major factor in the price increase. The reason why even famous investors such as Elon Musk and even large companies are interested in Bitcoin shows the impact of blockchain technology development on real finance cannot be ignored more.

4-2 Plunge of Luna coin
Luna Coin, which recorded one of the top 10 market capitalization in the cryptocurrency ecosystem, recently plunged more than 99%. The beginning of the incident was the plunge of Terra, a type of stable coin that guarantees the stability of the Luna coin through fixed algorithms. Someone borrowed a large amount of Bitcoin to buy Terra in large quantities and sold all of them in a short time. As a result, the price of Terra was quickly lowered, which is always fixed to one dollar. It was only a temporary phenomenon. However, as the price of Terra, which had remained the same through solid algorithms plunged, numerous server participants began to sell Terra coin in fear. As a result, the price of Luna Coin and Terra approached nearly zero, and many exchanges market designated Luna and Terra as stocks that cannot be traded.
   Since cryptocurrency does not have a fixed credit or value and purely relies on the participants in the public network, the range of price change is unlimited.

4-3 Internet crime using Bitcoin as a means of payment
   Everyone will remember the “Nth room case”, which shared various sexual videos
through Telegram apple. The operator of the chatting room threatened teenagers and many other people to produce sexual videos and shared them in the Nth room. The operator demanded cryptocurrency as a fee to enter the chatting room. Participants of Nth room paid various cryptocurrencies such as Ethereum, Bitcoin, and Monero to the operator and entered Nth room since every transaction record is saved with the forms of address, not a name.
   Hydra, Russia's illegal web market mainly used by cybercriminals which was used to find hacking tools, money laundering services, or trading stolen data or drug was recently shut down. When the Hydra server was closed, Bitcoin worth $25 million was seized, and according to blockchain researchers, about 86% of illegal Bitcoin received by Russian cryptocurrency exchanges in 2019 came from Hydra. Those cases show that cryptocurrency makes up a large percentage of cybercrime.
   Bitcoin may far from safety, as can be seen from the case mentioned earlier. It is far
from the stable ecosystem that consumers pursued from unsafe existing financial systems. Paradoxically, however, young consumers entering the cryptocurrency market are increasing. In 2018, the proportion of people in their 20s who had experience investing in Bitcoin was 22.7%, but in 2021, 60% of new bitcoin users were analyzed in their 20s and 30s.

5. How to look at the bitcoin market
   To be honest, the cryptocurrency system was born and grown based on the anxiety of consumers. People invest money in the cryptocurrency market because they believe they can no longer earn enough profits in the real currency market. 20-30-year-olds living in Korea often feel limited based on their given wealth level, feeling that they cannot earn enough money to enjoy the level of life they want no matter how much they work and invest in original products. However, a cryptocurrency can make an enormous amount of money to reverse your life if you make a good choice. As the existing economic system collapses due to COVID-19, the phenomenon of cryptocurrency investment, which is closer to a speculative act than investment, is increasing. It is close to a temporary bubble phenomenon when economically analyzed, very far from investment.
   Let us see how cryptocurrency is different from the traditional means of investment such as stock and bonds. Since stocks are ultimately based on the corporate profits of the enterprise, the good performance of a company can lead to a large dividend, and the value of the stock increases. Bonds are based on the credit and profitability of the borrower. If the borrower succeeds in the business based on the borrowed money, the owners of the bonds will be able to earn a profit. Bitcoin has none of them- no issuer, no supervisor, and no means to compensate your damage. It is only based on the increase or decrease in transaction volume and trust between anonymous users. Some even call Bitcoin a virtual “asset”, not crypto ”currency”. To be seen from this, Bitcoin is not recognized as a currency for payment but for investment to earn profit.
   However, IT technology is rapidly developing, and a new non-face-to-face economic order created by COVID-19 is leading the world economy. So, it is not possible to just suppress the cryptocurrency market or accuse bitcoin investment of speculation. Consumers are enthusiastic about bitcoin because they watched the existing market system, they had trusted shake, due to the 2008 financial crisis and the COVID-19 crisis. After that, they realized they could no longer succeed economically in the existing market, especially due to skyrocketing house and raw material prices caused by COVID-19. That's why people in their 20s recklessly jump into bitcoin. Also, inflation due to COVID-19 has shown that real money no longer guarantees stability. Although it is only a few, there is also a case in which the country leads the distribution of cryptocurrency.
   We are all living in an unstable and changing economy. No one can guarantee whether today’s standard will be tomorrow’s standard. In this unstable situation, what we choose will probably make a big difference to each all market players in the 21st century, since no one is responsible for your choice. So, every market participant should think carefully before making a decision about cryptocurrency. It will be helpful to some market participants if governments and private educational institutions provide accurate information related to bitcoin bubbles and related crimes. It will be good to follow the way Japan does, by imposing a tax on bitcoin transaction profits.

Conclusion
   No matter how innovative the change is, increased convenience without guaranteed security and safety is probably meaningless. We have already experienced the costs of the uncontrolled innovation in 1997’s IMF crisis and the subprime mortgage crisis in 2008. We are experiencing unexpected side effects of technological development day by day. Innovation is indeed unstoppable. However, there should always be a safeguard that can restrain innovation when it goes in the wrong direction.
   It is meaningless to try to stop the waves and to ignore the tide. But judging which waves
should we ride in is significant, so we need to know what is changing and how it will affect our lives to determine the right wave. Emerging fintech, and the products of fintech represented as blockchain and bitcoin, are no longer for “only those who are interested” or “only those in the financial industry should know” but for us who are living in the 21st century. Particularly we need to pay prompt attention to cryptocurrency, which its value soared due to the economic depression after COVID-19.
   Cryptocurrency, which is in the heated argument between speculation and investment, is considered the only light among many people who are anxious about the collapse of existing finance, It can be an attractive product of technology in that it can make an enormous amount of money that cannot be easily made through ordinary investments. However, as many experts pointed out about cryptocurrency, “Cryptocurrency is being deteriorated to financial speculation, not a means of payment as first invented.” We should pay careful attention if we want to invest in cryptocurrency. It is free to invest in cryptocurrency, but we always need to keep in mind clearly that individuals must take responsibility for the results thoroughly.