Cryptocurrency sets apart two close friends

By Kang Seung-woo

Two high-profile opinion leaders and fellow reality show co-stars have locked horns over blockchain technology.

Rhyu Si-min is a politician-turned-writer and Jeong Jae-seung is a scientist and professor at the Korea Advanced Institute of Science and Technology (KAIST). They appeared on the first season of the reality TV show “Dictionary of Useless General Knowledge.”

Blockchain is an open distributed ledger system that propels most cryptocurrencies including bitcoin and ethereum, and it is regarded as a game-changer of the Fourth Industrial Revolution.

However, as the recent escalating cryptocurrency trading frenzy is raising fears of a price bubble, critics are making sweeping criticisms of blockchain as well as digital money.

To cool the overheating Korean cryptocurrency market, the justice minister said last week the government was considering closing down domestic exchanges -- a premature plan that drew a huge backlash from investors.

Rhyu Si-min is the latest to cast suspicion over the hottest technology.

“The cryptocurrency boom is no more than a 21st-century version of the Dutch tulip mania of the 17th century,” Rhyu told the local daily Joongang Ilbo.

Tulip mania was the first major financial bubble that saw contract prices for some bulbs of the new and fashionable tulip reach extreme heights and then dramatically collapse.

“It is a process of someone exploiting human folly to make (unfair) profits and crooks from all over the world are involved,” he said.

He does not buy into the idea blockchain technology will have a positive impact on a range of industries.

“Sorry to say this, but what they describe as a tool to promote industries is a fake,” Rhyu said.

“There are a slew of news articles that possible government regulations on the technology would turn Korea backwards on the path of scientific progress in the era of the Fourth Industrial Revolution. However, I am suspicious they are seeking their own interests by driving up the value of cryptocurrencies.”

Jeong immediately struck back at Rhyu, saying he is seemingly unaware of how blockchain will be applied to the global economic system and self-evolve contrary to his strong words.

“I am on the same page with him regarding the overheating cryptocurrency speculation, but what is more important is that the government needs to take subtle measures against digital money, taking its future applications into account,” Jeong wrote on Twitter.

“Blockchain is not just a platform underpinning cryptocurrencies and it will have extensive influence on business-to-business and business-to-consumer transactions and will bring about huge changes to the global economic and financial systems in the end.”

Jeong added: “Unnecessary regulations on cryptocurrencies could prohibit blockchain applications fundamentally.”