3 minutes of U.S. economic leader Roh Jung-dong’s warning when Bitcoin market cap exceeds $1 trillion IT

When the market capitalization of Bitcoin, a representative virtual asset, exceeded $1 trillion (about KRW 1104 trillion), the U.S. Central Bank (Fed, Federal Reserve System) started sending a’warning’. Financial experts interpret this as’downside pressure’, which is that the US government is starting to crush Bitcoin, which could be a rival to the dollar.

According to CNBC on the 20th (hereinafter referred to as local time), US Treasury Secretary Janet Yellen told the media on the 18th that “Bitcoin is a very speculative asset.” “To regulate the institutions handling bitcoin and keep its responsibility. It is very important to do it.” Earlier, Minister Yellen said last month, “I know that many cryptocurrencies are mainly used for illegal finance. We need to consider ways to reduce such use and prevent money laundering.” The US Treasury Secretary’s’warning’ was immediately followed when the market cap of Bitcoin was set at $1 trillion on the 19th in US local time.

Yellen wasn’t the only person in the government that sent warnings about the’soaring bitcoin price’. On the 19th, Boston Federal Bank Governor Eric Rosengren told The New York Times, “If digital currency is available, I don’t know what is the reason why people use bitcoin other than the underground economy.” “I don’t think Bitcoin will survive long because central banks have the potential to create alternative cryptocurrencies themselves.” Rosengren supported the assertion that “Bitcoin will strengthen the underground economy,” which early virtual asset pessimists often put forth.

Bitcoin surpassed $1 trillion in market cap for the first time ever on the 19th. This is the first time since the creation of individual cryptocurrencies. Bitcoin’s market capitalization is more than twice that of Samsung Electronics (approx. 491 trillion won), which is the No. 1 market capitalization in the domestic stock market, and Tesla (approximately 820 trillion won), an electric vehicle listed on the NASDAQ market, is also surpassed. Bitcoin’s recent surge is dominated by analysis that large institutional investors are jumping into virtual asset investment one by one.

First of all, Tesla recently announced that it has purchased and held about 1.5 billion dollars (1.6 trillion won) of bitcoin. Tesla founder Elon Musk tweeted the day before and wrote, “When the real interest rate of fiat money is negative, only idiots (Bitcoin, etc.) don’t look elsewhere.” He said, “holding bitcoin is a less stupid act than holding cash, and bitcoin is almost like money.”

General Motors (GM), a US automaker, said it is considering whether to adopt virtual assets as a payment method for services and vehicle purchases, and New York Melon Bank announced that it will handle bitcoin in the future. PayPal, the world’s largest online payment company that recently introduced virtual asset payment, also expressed its stance that it wants to take advantage of the rapidly growing virtual asset market as an opportunity.

Bill Gates, who has been criticizing Bitcoin for its lack of intrinsic value, seems to have recently changed its position. According to Cointelegraph on the 19th, Gates said, “I don’t have bitcoin, but I don’t have a skeptical view of bitcoin either.” This is in contrast to Gates’ criticism of Bitcoin and showing a negative stance. “We recognize the importance of digitizing money and lowering transaction costs,” he said. “What the Bill & Melinda Foundation is doing in developing countries is to digitize money and reduce transaction costs.”

Some people are showing negative outlooks. This is Michael Burry, who made billions of dollars by predicting the 2008 subprime mortgage crisis and betting on the collapse of the housing bubble. He is also well-known as the protagonist of the movie’Big Short’. In an article posted on Twitter the day before throwing away, he warned, “Be prepared for inflation,” and said, “Amid the inflationary crisis, the US government will try to crush bitcoin and gold, which could be rivals for the dollar.” “In the 1920s, Germany issued a mark to fill the deficit from war debt,” he said, criticizing the current US government, which is printing dollars in response to Corona 19.

Global companies are still negative about Bitcoin investment. According to Bloomberg News, according to a survey conducted by US market research firm Gartner of 77 financial executives, including 50 corporate chief financial officers (CFOs), 84% of respondents expressed negative intentions about investing in bitcoin. It. Only 16% of respondents said they are willing to invest, and only 5% said they intend to invest within the year. Alexander Vant, head of research at Gartner, predicted that “the financial executives would not want speculative adventures. As a corporate asset, Bitcoin as a corporate asset has many unresolved issues, so it will be difficult to spread the investment quickly.”

Reporter No Jeong-dong Hankyung.com [email protected]

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