Over the years, the concepts of block chain, virtual currency, electronic money, digital money, crypto currency, Bitcoin, OneCoin … appeared a lot in life and caused many attention of the people. That appearance brings many changes in both positive and negative meaning directions.
Years of 2017 and 2018, we witnessed so many countries accepting the crypto currency as a means of payment in addition to the legal money (Fiat) of those countries. However, the crypto currency left a lot of consequences, in which highlight names such as BCC (BitConnect), ifan, Skymining, … like a virtual money scam. Many investors get rich quickly, but many people get failure because of this trend.
In order for readers to better understand this new type, the Start-up World News has an interview with Dr. Tran Quy (Vice Chairman of HCMC Association of Science Consultants for Technology and Management, Chairman of the Club of Digital Economics Research & Development Institute, also Director of Sao Khue Consulting Company) on this topic.
Hello Mr Tran Quy, many years ago, when met you as the researchers, consultants and trainers in the field of Telecommunications and Information Technology or General Director of a large enterprise, sometimes a lecturer, …. Currently meet you in a role of an expert in the field of Corporate management Science, of Financial Technology and crypto currency. Could you please tell us the chance for your turn to this field ?
I was originally a specialized engineer in Telecommunications Technic, thence added a second degree in Information Technology. From the early years entering the university environment, I enlisted to learn more about business administration, which partly reduced the inherent “hard” character of pure technical people! Over many years working in the environment of Research & Development and Technology consulting, have access to many data sources and new knowledge, I demolish many technical barriers and look beyond the problems of “tendency”. In 2016, I chose to develop the Financial Technology and Crypto Currency as the main direction for my research theme and want to deepen this field.
In recent years of the World in general and Vietnam in particular, the appearance of block chain, virtual money, crypto currency … were becoming frequent, many people believe that virtual money is the frauds, some people think that is the certain trend, how do you comment on this problem ?
Blockchain is a big problem that I will talk about in another big topic. However, Blockchain is understood as another form of Internet – a perfect and transparent technology platform based on technical stratification and application multi-layers for life, including financials, economics and monetary; tangible assets (material property, houses, cars); and intangible assets (votes, ideas, health data, information …). Crypto currency is also an application form from blockchain technology in the financial market
Digital currency (known such as electronic money, crypto currency, digital money …) is a new money form aimed at payment in life, due to its transparency in transactions control . However, some years ago, the concept of crypto currency has been distorted when “virtual money” emerged as a bad phenomenon and caused many negative corollaries for society. Many people exaggerate and deform the basic nature of the crypto currency plus the effective support of the media by enticing players into the financial games (Money games). Through these people and in these games, the digital currency turns into virtual money.
So how to distinguish the real and virtual digital currency, sir?
First of all, we talk quickly about the function of money and goods in daily life. Goods are the unity of two attributes of usable value and own value. About the usable value, we can directly identify with the senses, but about the own value, we can see in the exchange behaviour, it means in the relationship between those goods. Currency has many functions, of which the two most basic functions are :
- Money is a measure of value : money used to represent and measure the own value of goods. For the value measure of goods, the currency itself must be valuable, differently say, the price is a form of monetary expression of the goods value.
- Money is a means of circulation : as the function of a circulation means, money like a broker in the process of goods exchange. The function of goods circulation requires money. The Goods exchanges take money as brokers so just called goods circulation.
Parallel to currency, it always had two important factors : ecologic system and community. At present moment, we are using the legal currency (named Fiat). Each country issues its own legal money and circulates in the nation’s ecologic system of economy and community (the people). In the future, coexisting with legal money, the crypto currency will circulating in its ecologic systems and new communities.
The past few years, following Bitcoin growth movement, through the support of media methods, thousands of different “virtual moneys” appear, inflated as digital currencies and posted to trade on virtual money markets (named platform). Why do I call this virtual money ? Because of aforesaid analysis, these virtual currencies do not have an ecologic system or their players create a “fake ecologic system – a media ecologic system “, in order to be put on trade markets rather than on the function of value exchange and goods circulation. Due to these factors, Investors become “virtual communities”, and mainly being speculators or surfers, led by media campaigns to a “virtual value”. Thereafter, without the existence of any ecologic system, these “virtual moneys” return to zero. This is called a money game or Scam.
Thus, to recognize a digital currency as “real money” or “virtual money”, we’ve to consider two main factors -the ecologic system and the community, and note that the real currency must be in the real ecologic systems and active communities, contrary to virtual money within the speculative communities and media ecologic systems.
As your idea, what’s the legal status of the digital currency ? When its market still controversial, should we invest in digital currency now ?
Investing in a tendential market -energetic and advanced, is indispensable. I personally encourage everybody to learn carefully and participate in this investment if appropriate. The controversial market of digital currency largely comes from past factors. As I mentioned above, Investors (especially in Vietnam) permanently entangled big mistakes when participating : lazy to learn a necessary knowledge, follow the crowd effects, psychologically want the quick benefits and big profits. With these manners, investors often fall into traps of high interest rate, particularly in the period of 2015-2018, which are the most painful years for Vietnamese investors, thence, virtual money has become a fear of the majority of investors.
Regarding the perspective of governmental management : Currently, on front of the promoted digitalisation trend of the economy, The worldwide economies have common views and have certain consensus to digital currency development in accordance with its trend. Many countries issue a legal framework for digital currency, and some countries also allow the digital currency use as a means of payment. The breakthrough in the issued legal frameworks is the basic elements of currency like KYC (Know Your Customer), AML (Anti-Money Laundering), CFT (Combating Financing of Terrorism), … In Vietnam, the Prime Minister issued a decision No. 1255 / QD-TTG (August 21, 2017) to enact a legal framework for digital currency and the Ministry of Justice is also completing it and in the finalizing process for issuing.
2019 have a good signal that’s considered as a pivotal year for the legalization and development of digital currencies in world entire so this is a mature and riskless time for investors.
Could you reveal the process of your digital currency investment?
I began to buy Bitcoin since 2011, of course, at that time I did not think about the investment, but just to serve the timely experiment for my research topic. In 2016, while working as a research student, I participated in several digital currencies on the platform for my researching and teaching, and I bought Bitcoin for investment purposes. At that time, I evaluated that most of the cryptos are in the form of “virtual money”, virtual projects, without ecologic systems and those communities are mainly speculators or keep away the project interest money.
Actually, I only own a few Bitcoin -ETH, and the rest is focusing on investment in the blockchain field and digital currency projects in available ecologic systems and also possess a few benefit (laughs). Before the Lunar New Year, on business trips and training, I also tried to buy and exchange goods by digital currencies through DealShaker e-commerce infrastructure, this is a money project that I pursued and was quite satisfied.
Realisator : Wudiep
