![[투자노트] Bitcoin investors stand on a slanted playground](https://image.chosun.com/sitedata/image/202102/23/2021022300427_0.jpg "[투자노트] Bitcoin investors stand on a slanted playground")
Input 2021.02.23 08:36
On the 20th (local time), the founder and CEO of Tesla Elon Musk wrote on Twitter that the price of bitcoin seems to be too high. Musk, who has been publicly supporting Bitcoin since last month, warned of overheating with a different voice. Musk, who invested in $1.5 billion worth of bitcoin and publicly advocated “Bitcoin is a good thing” in the voice-based chat application (app) Clubhouse, but was wary of overheating on this day.
The 3rd rally, which started this year, is still ongoing. Bitcoin price exceeded 50,000 dollars for the first time in history on the 16th and is currently around $54,000. Bitcoin, which remained below $30,000 until last year, rose more than 70% this year alone.
Recently, among financial investors, there are not a few people who have decided to invest in bitcoin by removing funds from the stock market that has entered the box again. It means betting on bitcoins, which will give you a much better scorecard in terms of returns.
Park Sang-hyun, a researcher at Hi Investment & Securities, analyzed that “the global economy and industry, furthermore, as the digital paradigm shift in everyday life is accelerating, it is an atmosphere that appreciates the asset value of cryptocurrencies such as bitcoin, which is emerging as a digital payment method.” .
We don’t know if the price of bitcoin above $50,000 is fair enough, or if there will be a cooldown in which prices will plummet again. However, if you are an investor who wants to move from the stock market to the coin version, you need to know one thing for sure. That is, Bitcoin investors are exposed to a very difficult investment environment.
The most difficult aspect of the environment in which Bitcoin investors are faced is that trading is ongoing 24 hours a day. The Korean stock market runs from 9 am to 3:30 pm, and the stock markets of countries such as the United States, which have a significant time difference from Korea, have similar operating hours. As investors have the beginning and end of the market on that day, they have time to plan investment strategies or respond to rapid market fluctuations. However, Bitcoin is being traded by investors from all over the world without a break. Since it is physically impossible for even the most enthusiastic investor to check the price of bitcoin 24 hours a day, it is inevitable that the asset value changes significantly while taking a breath or sleeping.
There is no upper or lower limit, which is something that Bitcoin investors should keep in mind. Bitcoin, which had surpassed $1,000 on December 6, 2013, fell to $576 on the 7th, the next day, and broke in half in one day. In these days when influential figures such as Musk mention bitcoin every day, the market for roller coaster rides on a daily basis may continue.
The Korean government’s taxation policy is equally unfavorable to bitcoin investors. The Ministry of Strategy and Finance plans to impose 20% income tax (other income tax) on virtual assets such as bitcoin from January 1, 2022. The Ministry of Science and Technology plans to impose a 20% income tax (transfer income tax) on money earned from stocks from 2023. The timing of enforcement for Bitcoin is a bit early, but the tax rate is the same. However, the amount of the basic deduction (amount excluded when determining the amount of tax to be taxed) differs greatly. The basic deduction for money earned from stocks is up to 50 million won, but only 2.5 million won for bitcoin is allowed.
It will take a little more time to know if Musk’s statement that bitcoin seems too expensive is true. What is clear is that bitcoin investors are standing on a’tilted playground’. Even if bitcoin runs on a slanted playground, isn’t it that only investors who want to earn a big share should take risks and invest carefully.