Nearly 45 million won in Korea
Inflation risk avoidance measures
Institutional investors
“Bubble and speculative rise” skepticism
viewer
Bitcoin’s price has surpassed $40,000 for the first time ever.
According to the cryptocurrency site CoinDesk on the 8th, bitcoin, the leader of the cryptocurrency, rose to $40,324 each after 3am on the day. Then, while taking a breath, it traded between 38,000 and 39,000 dollars. Bitcoin surpassed $20,000 on December 16 of last year and doubled in just 20 days. The domestic market is also experiencing a steep rise. According to Bithumb, a domestic cryptocurrency trading site, this morning, it recorded 44.84 million won per piece, approaching 45 million won.
CNBC, a U.S. economic broadcaster, saw that the reasons why Bitcoin is soaring are complex. First of all, there are growing observations among investors that Bitcoin is a safe asset that can offset the risk of inflation with a kind of’digital gold’. Central banks around the world, including the US, are releasing astronomical money in response to the novel coronavirus infection (Corona 19). As a result, there is a growing expectation that the value of money will fall and prices will rise, and the value of Bitcoin is jumping. Recently, JPMorgan predicted in a report that Bitcoin could rise to $146,000 in the long run as it competes for gold and its “alternative currency” status. That’s more than three times the current price (about $40,000). Foreign institutional investors are also jumping in. Wall Street’s renowned hedge fund managers Paul Tudor Jones and Stanley Drunk Miller have revealed that they own Bitcoin.
Looking at Korea, major financial companies have also begun to move. Shinhan Bank announced on the 7th that it will pursue a strategic equity investment in Korea Digital Asset Trust (KDAC) to enter the digital asset trust market including cryptocurrency. Kookmin Bank also entered the digital asset market by making a strategic investment in Korea Digital Asset (KODA) last November.
However, there are still many views that raise questions about the value of Bitcoin. New York University professor Nouriel Rubini told Yahoo Finance Live on the 24th of last month that the rise of bitcoin was “a speculative rise,” and that “the price of bitcoin was entirely manipulated by a group of people.” “Bitcoin is a bubble and it is very unusual to rise in such a short period,” David Rosenberg, Rosenberg Research Economist, told CNBC. Bitcoin soared to over $20,000 in 2017, but fell to the level of $3,000 in early 2019.
/ Reporter Lee Tae-gyu [email protected]
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