[가고파] Bitcoin craze- Lee Myung-yong (Director of Economy) :: Gyeongnam Newspaper

The price of bitcoin, which represents cryptocurrency (virtual currency), is terrifying. The price per unit soared to 26 million won in January 2018, and after peaking for nearly three years, it did not show a big fluctuation for nearly three years, but then again exceeded 20 million won in November last year. This year, after exceeding the 30 million won line, it has exceeded 65 million won in February, 70 million won in March, and 75 million won on the 3rd. After the first appearance in 2009, such as the spread of official payment methods, there is an atmosphere of re-evaluation.

▼Bitcoin began with distrust of the existing financial system during the 2008 global financial crisis. Decline in the value of the dollar due to the large-scale issuance of dollars, national regulations, personal information leakage, etc… . Bitcoin, which started from overcoming this, is an electronic money operated one-on-one among users without going through a financial institution. The total number of publications (21 million) is fixed and is not affected by external sources such as reproduction, forgery, or state intervention. The recent bitcoin craze has been recognized as a safer asset than the dollar or euro because of this.

▼ However, there are also a lot of critical public opinion. US Central Bank Chairman Powell said, “Cryptocurrency is so volatile that it is only a speculative instrument.” It is speculative to do,” he criticized. “It is absurd to call a digital symbol that has no value and cannot be quantified as a currency,” said a professor at New York University at Rubini. “The fundamental value of Bitcoin is zero.”

▼The United States has risen to the world hegemony by leading World War I and II to victory. Behind that is the domination of the global financial market through the solidification of the dollar. However, the dollar is increasingly distrusted by large-scale quantitative easing in 2008 and the recent decision to issue $1.9 trillion by the Biden administration. Ultimately, the bitcoin craze seems to be a market warning that the dollar’s hegemony has begun to decline due to the dollar bubble.

Lee Myung-Yong (Director of Economy)